Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Half year results from housebuilder Barratt are out this morning, with total completions up by over 4%, revenues up by over 7% and a 2% improvement in margins being recorded. Yet again the housing sector shows no signs of slowing down despite the Brexit – a word that doesn’t even appear in the note – catharsis that is increasingly gripping the UK economy. With pre-tax profits up by almost 20%, shareholders are being rewarded with a 11% increase in dividends.
Sticking with house building, Redrow has published its interim numbers today, too. Whilst the company at least acknowledges Brexit risk, the results once again make for powerful reading. Completions up 12%, revenues up 9% and dividends up 11%. This juggernaut of a sector shows no signs of slowing down – at least so long as interest rates remain low…
Q1 results from CYBG this morning have shown mortgage lending inching higher, although the margin it earns on loans versus deposits has fallen from the same period a year ago. That’s a result of sustained competition and presumably something which isn’t sustainable. If borrowing costs start to creep higher then the halcyon days for the housebuilders surely could be coming to an end…