Taylor Wimpey falls on margins and uncertainty

The share price of FTSE 100 housebuilder Taylor Wimpey (LON:TW.) has dropped by 2.31% to 166.03p (as of 10:30 GMT) after it said it was on track to meet expectations for the year despite lower operating margins than suggested at the end of the first half. Management said that uncertainty in the market has increased over the year, but said that with a strong order book and substantial land bank they were prepared for all possible market outcomes.

CEO Pete Redfern commented: “We are on track to deliver full year 2019 results in line with our expectations driven by an industry-leading sales rate. In spite of wider political and economic uncertainty, housing market conditions have remained resilient. We are focused on the delivery of the highest service and build quality to our customers and investing in the sustainability and future capacity of our business.

In the second half, we continued to see good demand for our homes and have built a very strong order book. Looking ahead, our cash generation and financial position are very strong and we reiterate our commitment to returning c.£610 million by way of total dividend to shareholders in 2020“.