UK Housebuilding Sector: 2016 and beyond

Hardman & Co

Hardman & Co ReportIt was Arthur Holly Compton, a physicist and winner of the Nobel Prize in physics in 1927, who invented speed bumps; and they were first used in New Jersey in the US in 1906.

Widely employed now, this family of traffic calming devices uses vertical deflection to slow down motor vehicle traffic in order to improve safety conditions.

But they are not without their detractors and have been blamed for increased traffic noise/pollution, slower response times for emergency vehicles and, in Sweden, spinal stress in bus drivers.

Similarly, Brexit in the UK has its supporters and vilifiers, in almost equal measure, and on 23 June last year what should have been a jounce for the Housebuilders became something more seismic as the Sector subsequently lost 36% of its value.

This was more a speed wall than a bump (see chart overleaf) and although the Sector sedan drove carefully thereafter – there was still a 15% penalty in terms of value at the end of 2016.

It is also the case that the movement of share prices in most of Q3 and all of Q4 resembled an elongated speed bump warning sign i.e. velocity increased on positive news flow only to decelerate when it met the sleeping Brexit policemen.

But money has been made and more will be on offer as we expect this oscillation to continue; and in the first short trading week of the New Year, share prices rose 3.6% on average with three of them – Persimmon, Taylor Wimpey and Crest – up by 9 to 10%. Empirically, though, it is proven that driver selection and lap counting are critical.

Share on:
Find more news, interviews, share price & company profile here for:

    Melrose Industries Plc appoints Guy Hachey as Non-Executive Director

    Melrose Industries has appointed aerospace industry veteran Guy Hachey to its Board as Non-executive Director. Hachey brings over 30 years of leadership experience from Bombardier Aerospace, Delphi, and Advent International, and currently serves as a director at Hexcel Corporation.

    Cizzle Biotechnology to launch CIZ1B cancer test across USA

    Cizzle Biotechnology has announced that its North American partner, Cizzle Bio Inc, has signed an agreement with a multi-site accredited laboratory group to roll out the CIZ1B biomarker test for early lung cancer detection across the USA.

    Aptamer secures contract Eetension with top 5 pharma partner

    Aptamer has extended its collaboration with a top 5 global pharmaceutical company to advance Optimer® binders into a fully functional ELISA assay. The agreement builds on the successful completion of the initial binder development phase, with Aptamer retaining IP ownership to support future commercialisation opportunities.

    Quadrise updates on Marine, Americas, Morocco and US projects

    Quadrise has reported progress across its key projects, including near-final marine agreements with MSC and Cargill, concluded trials in Panama, and pending OEM approval for its Morocco trial.

    Tekmar wins $1.6m offshore grouting contracts in Qatar

    Tekmar Group has secured two offshore grouting contracts in Qatar worth around US$1.6 million. The projects, awarded by existing customers, involve pipeline support remediation using ROV-deployed grout bag technology and are scheduled for completion by October 2025.

    Ilika plc Stereax Micro Batteries Enter Production with Customer Deliveries on the Horizon (Video)

    CEO Graeme Purdy shares a pivotal update on the company’s Stereax micro batteries as they complete manufacturing qualification and move into production.

      Search

      Search