To the list of housebuilders that have more money than they know what to do with can be added Taylor Wimpey. The company ended last year with a small amount of cash in the bank, which is an inefficient use of capital.
Investors, therefore, are promised more news on the company’s “capital allocation approach” with the full-year numbers on February 26.
I leave it to the politicians to decide on the appropriateness of this, given the huge boost the housebuilders have had from various government stimuli, the most successful being Help to Buy.
Taylor Wimpey investors, though, will be aware that they had to stump up £530 million in a rights issue in May 2009 to keep the company afloat, so this is at