These arrows in the UK’s UK profits result in 9.5 % striking. This is the highest on FTSE 100. But it also has problems. The company concerned is the building of the house Taylor Wimbi (LSE: TW) and its shares decreased by 40 % a year to trade at the lowest level in 52 weeks. With the price ratio to profits from 11.9 only its price appears. But be careful.

Taylor Wimbi shares are fighting

I bought the stock in 2023 with a long -term offer, and I am happy to stick to it throughout the rise and landing. I have compensation for stock profits, even if you are generally hanging. The council recently cut off the temporary batch from 4.8p to 4.67 pixels, but the total commitment of the shareholders seems strong. It is still promising to return about 7.5 % of net assets annually, equivalent to at least 250 million pounds per year.

The guidance now indicates an expected return of 9.13 % in 2025 and 9.3 % in 2026. While this is a little less than today, it is still a great income rate. Investors who prefer high -yield profits will be seduced. You should also be careful.

The pressure remains

The inflation came by 3.8 % in July and could reach 4 % in September. This will keep mortgages higher than we would like, and strike the ability of the buyer and demand. Drug inflation also raises the costs of Taylor Wimbi, while wages also climb faster than prices, an increase of 4.6 % annually in the last number. The increase in April National Insurance for employers and the minimum wage has pressed the margins.

The results of last month (July 30) revealed a loss of 92.1 million pounds in the first half. The ruling of the cladding of 222 million pounds was the main clouds, but the slowingness of the completion was also hurt. The Board of Directors reduced annual profit instructions by 20 million pounds as a result.

The group still expects to end between 10,400 and 10800 homes in the United Kingdom in 2025, which is a silent look, given the government’s pledge to build 1.5 million homes of this parliament.

The tax policy can add pain. Rumors of new fees can reach the higher value of the budget. Unless they are just rumors.

Long -term growth prospects

Investors who think if shares will be purchased to perform their homework. What I see is a good company that spends a difficult time. Taylor Wimbi is largely at the mercy of events out of his will. Interest rates should decrease, ease of inflation and confidence before enhancing housing demand. This may take time, but the return of more than 9 % is great while waiting.

We cannot expect immediate recovery. House builders have struggled since they fell in the wake of the 2016 British Union’s exit vote. Today, just less than 100p. So he decreased by half at the time. With this type of weak performance, it is not enough to distribute high profits.

For investors who understand and accept risks, and they can withstand more short -term disorders, today it can offer a great entry point. I have been beating, but I work myself while thinking that my re -investing profits will accommodate more shares at the low price of the day.

I think others may think about buying this level, just do not expect a smooth journey. If I feel courageous, I may mediate in my position.