Taylor Wimpey leak letter says nothing new

Taylor Wimpey chief executive Pete Redfern’s leaked Christmas letter to all the house builders’ staff is viewed in the City as completely lacking substance.

Rather, it merely seen as a re-iteration of the known state of play and provides no new answers to the house builder’s uphill battle to put its stressed finances in order.

“If there had been anything of new in Redfern’s letter the shares would be up 200% or 300%,” said one analyst.

In fact TW’s share price climbed from 10p to 10.75p.

“What Redfern states is a reiteration of where we were,” notes the analyst. “It says we might be moving in the right direction but basically there is a lack of detail on something that is very complex. It is dangerous to extrapolate anything at all from his words.

“Just look at Barratt – when it announced that the refinancing was done the shares went from 40p to 180p which is altogether different from Taylor Wimpey inching to 10.75p.”