Bulletin
Investor Alert

London Markets Open in:

London Markets Archives | Email alerts

Jan. 10, 2022, 9:18 a.m. EST

U.K. builders slump on government call for unsafe cladding fund

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Persimmon PLC (PSN)
  • X
    Berkeley Group Holdings PLC (BKG)
  • X
    Taylor Wimpey PLC (TW)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

U.K. builders slumped Monday after the government said it was seeking £4 billion from the industry to deal with unsafe cladding.

Builders including Persimmon /zigman2/quotes/206444744/delayed UK:PSN +1.78% , Berkeley Group /zigman2/quotes/202576163/delayed UK:BKG +2.08% and Taylor Wimpey /zigman2/quotes/208623755/delayed UK:TW +1.76% each fell as Secretary of State for Levelling Up, Housing and Communities Michael Gove gave builders a deadline of early March to agree a “fully funded plan of action” including remediating unsafe cladding on 11-to-18 meter buildings.

Cladding concerns have weighed on the sector since the 2017 fire at Grenfell Towers in London that led to 72 deaths.

Analysts at UBS say a worst-case scenario would be a tax increase that would reduce sector earnings per share by 11%, but a likely outcome is “some sort of burden sharing.”

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.19% slipped 0.1%, with the U.K. index outperforming European rivals that have a greater technology weighting.

Hopes for rising bond yields lifted the U.K. financial sector, as Barclays /zigman2/quotes/208409333/delayed UK:BARC -0.37% and HSBC Holdings /zigman2/quotes/203901799/delayed UK:HSBA +1.00% each rose 2%.

/zigman2/quotes/206444744/delayed
UK : U.K.: London
2,120.00 p
+37.00 +1.78%
Volume: 840,264
May 20, 2022 4:35p
P/E Ratio
8.62
Dividend Yield
11.08%
Market Cap
£6.77 billion
Rev. per Employee
£694,861
loading...
/zigman2/quotes/202576163/delayed
UK : U.K.: London
4,122.00 p
+84.00 +2.08%
Volume: 292,988
May 20, 2022 4:35p
P/E Ratio
9.91
Dividend Yield
0.24%
Market Cap
£4.59 billion
Rev. per Employee
£934,196
loading...
/zigman2/quotes/208623755/delayed
UK : U.K.: London
127.25 p
+2.20 +1.76%
Volume: 9.93M
May 20, 2022 4:35p
P/E Ratio
8.36
Dividend Yield
6.74%
Market Cap
£4.53 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,389.98
+87.24 +1.19%
Volume: 722,321
May 20, 2022 4:56p
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
152.72 p
-0.56 -0.37%
Volume: 41.05M
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
3.93%
Market Cap
£25.58 billion
Rev. per Employee
£276,176
loading...
/zigman2/quotes/203901799/delayed
UK : U.K.: London
490.75 p
+4.85 +1.00%
Volume: 23.70M
May 20, 2022 4:35p
P/E Ratio
11.93
Dividend Yield
4.09%
Market Cap
£98.68 billion
Rev. per Employee
£200,552
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.