Taylor Wimpey – pricey shares, average performance

 
“For a company trading at an amazing 40 times earnings, it is surprising that today’s numbers didn’t cause a bigger fall in Taylor Wimpey’s share price. In a world where earnings upgrades are becoming the norm, TW’s performance is disappointing at best. There seems a lot of hope baked into the share price at these levels, and the robust 8%+ dividend yield seems ripe for some trimming. Earnings have continued to weaken since 2022, with no sign of a meaningful recovery in sight.”
 

“BAE’s challenge is not demand, it is delivery” – Charles Stanley on BAE

 

Garry White, Chief Investment Commentator at Charles Stanley, comments: “BAE Systems’ third-quarter update reinforced its status as one of the FTSE 100’s standout performers, with strong revenue growth and a bulging order book underscoring the global surge in defence spending. Robust demand for combat systems, missile-tracking satellites and long-duration programmes such as submarines and fighter jets continues resulted in management reiterating its full-year guidance, which was partially upgraded at its interim results in July. BAE’s challenge is not demand, it is delivery. Management needs to keep costs under control and deliver on time, especially when it comes to long-duration programmes such as submarines and fighter jets. The risk for BAE is now in the company’s execution, but this third-quarter update reinforces the positive investment case surrounding its shares.”

 

 

Fullers turn pints into profits with bumper Christmas forecast

 

Adam Vettese, market analyst for eToro says: “Fuller, Smith & Turner’s half year results demonstrate encouraging performance and growth momentum going into the key festive trading period. The company reported a 7% revenue increase, driven by 4.6% like for like sales growth in its managed pubs and hotels segment, which is outpacing the wider sector. Adjusted profit before tax grew by a healthy 28% and adjusted earnings per share surged 38%, reflecting solid profitability and efficient capital management. The firm’s disciplined approach has seen investors rewarded with a 6% rise in interim dividend and an ongoing share buyback programme.

“Looking forward, the company shows further promising signs with Christmas bookings already 16% ahead of last year, with the period being absolutely key for anyone within the hospitality sector. While statutory profit was impacted by a prior period asset disposal gain, the underlying business quality remains solid. The share price has experienced some volatility but has since turned positive for the year. The key question for investors is can it regain the significantly higher levels reached towards the tail end of last year, the strategic focus and operational resilience underpin a positive medium-term outlook.”

 

 

Taylor Wimpey feels the chill as housing market stalls

 

Mark Crouch, market analyst for eToro says: “Taylor Wimpey’s latest update shows that the autumn selling season has cooled. Sales have dipped as affordability pressures bite once more and whispers of property tax hikes in the November Budget spook potential buyers. The order book sits at 7,253 homes worth just over £2.1 billion, solid enough, but with volumes and sentiment softening, the company’s 2025 guidance for completions and profit merely “in line” feels like treading water rather than progress.

“Margins remain under strain as build-cost inflation, planning logjams and safety levies continue to gnaw away at profitability. The housing market’s sensitivity to interest rates and buyer confidence leaves little room for error, and the share price has duly reflected that unease.

“Rate cuts, when they finally arrive, will be welcomed by every housebuilder on the FTSE. But if those cuts are coming because the economy is losing steam, they could prove a mixed blessing. Taylor Wimpey may be well-capitalised, but for now, the recovery in housing looks more paper-thin than brick-solid.”

 

 

Temple Bar Investment Trust highlights outperformance on five-year anniversary for investment team

Temple Bar Investment Trust plc (LSE:TMPL), the UK-listed investment company that focuses on intrinsic value and long-term growth by investing primarily in UK-listed securities, celebrates significant outperformance on the five-year anniversary of Redwheel’s appointment as investment manager.

 

Since Redwheel and co-portfolio managers, Ian Lance and Nick Purves, were appointed by the Trust in October 2020:

 

  • Temple Bar has delivered a cumulative share price return of 221.0% over the five years to 31 October 2025 against 98.6% by the FTSE All-Share Index[1]
  • The net asset value of the Trust has risen 189.7% over the same period, outperforming the benchmark index by 91.1% [2]
  • The Trust has been ranked number one in the UK Equity Income Sector per Citywire over 1, 2, 3 and 5 years[3]
  • The Trust’s discount has closed over the period of Redwheel’s management to now trade at a premium
  • Temple Bar achieved a market cap of £1bn for the first time in September 2025[4]
  • Over 3 and 5 years, Temple Bar’s NAV Total Return was +84.3% and +189.7% respectively, compared to the AIC UK Equity Income peer group median of +17.9% and +60.3%[5]
  • The Trust ranked 1st out of 17 trusts in the AIC’s peer group over both these time periods[6]

Richard Wyatt, Chair of Temple Bar, said: “By appointing Ian, Nick and Redwheel in 2020 we were choosing to retain the value proposition in an investment environment that may have better understood growth or even an ESG mandate. To date, we have been proved right – Ian and Nick’s experience and conviction has delivered for our investors. Earlier this year we decided to reward shareholders by enhancing the dividend from capital reserves and we remain confident that the Trust will continue to deliver attractive returns over time.”

 

Ian Lance and Nick Purves, co-portfolio managers, Temple Bar said: “We believe that low valuation usually precedes a period of above average returns. Today the UK equity market appears to be very undervalued relative to its long-run history and other equity markets and, within the UK, the dispersion between value and growth is close to its widest point for fifty years. Both factors suggest that the Trust can continue to enjoy strong returns as M&A, share buybacks and investors recognising their overexposure to the US continue to catalyse this value.

“Recent negative sentiment towards the UK has resulted in UK listed stocks being valued at a significant discount to their overseas listed peers for no reason other than they happen to be listed in the UK. This has also seen corporate buyers – taking a longer-term view – stepping in to take advantage of this and was reflected in the trust’s portfolio where several holdings have fended off bids.” [7]

According to the AIC, the UK stock market comeback has boosted the performance of the UK Equity Income investment trust sector, which has returned 14% over the last year, an impressive 79% over the last five years and 105% over ten years.[8]

Since Redwheel assumed management of the trust, it has delivered a share price return of 221% and seen a transformation of its share register with an increase over 50% in shares held by three popular platforms amongst retail investors.[9]

 

Housebuilders rise as rate cut chances spike

“The chances of a December rate cut have risen throughout the morning following the unemployment figures, and now stands at 86%. This expectation of looser policy has given a boost to housebuilder shares – Berkeley, Barratt Redrow and Persimmon are all higher this morning, notably head of figures from the latter two this week. Some of the impact of lower borrowing costs will be offset by the expected tax rise heading our way in the Budget, but  further rate cuts also loom on the horizon, particularly if inflation keeps coming down too.”



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