FTSE 100 shares round-up: Taylor Wimpey, Glencore, Sage

The 9%-yielding shares of Taylor Wimpey (LSE:TW.) were today trading back near the £1 threshold after half-year results extended a gloom-laden few weeks for the housebuilding sector.

The stock has now fallen by 17% since mid-June, wiping out the recovery from the tariffs-led turmoil of early April and leaving Taylor Wimpey in danger of FTSE 100 relegation after its valuation slumped to £3.6 billion.

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Brownfield regeneration specialist Berkeley Group Holdings (The) (LSE:BKG), whose cautious results guidance sent a chill through the sector last month, is also battling alongside Persimmon (LSE:PSN) to avoid the drop in September’s quarterly reshuffle.

Taylor Wimpey’s half-year commentary confirmed fears that market conditions have softened in recent weeks, not helped by ongoing mortgage affordability constraints for first-time buyers.

Uncertainty over the economic outlook due to fears of tax rises in the autumn Budget and the latest round of building safety remediation costs have added to the weaker sentiment.

In today’s results, Taylor Wimpey took an additional cladding fire safety provision of £222.2 million and disclosed an unplanned charge of £20 million in relation to poor workmanship by a principal contractor on a London development between 2012 and 2015.

Operating profits fell by 11.7% to £161 million due to the London remediation work, while the cladding provision sent the group to a bottom-line loss of £92.1 million.

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The one-off items offset a resilient first half operational performance, including an 11% increase in completions to 5,264 homes. The group recorded a private sales rate of 0.79 per outlet per week, although this had slowed to 0.59 by the four weeks to Sunday.

Full-year guidance in relation to volumes and average selling prices was unchanged, while the group highlighted a strong balance sheet and “excellent” landbank.

It said this position gave it room to pay an interim dividend of 4.67p a share on 14 November.

The payout is 3% lower than a year earlier and forms part of an ongoing policy to distribute 7.5% of net assets or at least £250 million annually.

Taylor Wimpey said this provided investors with visibility of the income stream they can expect throughout the cycle, including during a downturn.

It has returned £2.7 billion to shareholders since the policy was introduced in 2018, making the shares the best yielding in the FTSE 100 housebuilding sector.

With a valuation multiple of 12.5 times 2026 earnings and a dividend yield of 9%, broker Peel Hunt kept its 130p target and Add recommendation following the results.  The shares were the most traded on the interactive investor platform today.

Elsewhere in the FTSE 100 index, Glencore (LSE:GLEN) topped the top flight after chief executive Gary Nagle said the mining group was well placed for "value accretive growth" after making significant progress during the first half.

Ahead of next week’s half-year results, he upgraded marketing division earnings guidance in order to reflect the impact of July’s disposal of grain handler Viterra.

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He also said that a comprehensive review had highlighted the potential for $1 billion of cost savings opportunities in the company’s industrial assets operation before the end of 2026.

In addition, Glencore recently presented a positive long-term outlook for its newly acquired Elk Valley Resources coking coal operations in British Columbia. Its optimism reflects industry supply constraints and the demand growth outlook in India and South East Asia.

Nagle’s comments came as Glencore lowered the top end of its production guidance for copper in 2025 but raised the bottom end for cobalt and narrowed the range for zinc output. Shares lifted 4.25p to 310.1p, which compared with 230p in early April and 326p last week.

Sage Group (The) (LSE:SGE) shares were initially among the best-performing shares in the FTSE 100 index after the accounting software group reassured investors in its third-quarter update.

The Newcastle-based company delivered a 9% year-on-year increase in total revenue to £1.86 billion for the first nine months of the year, reflecting broad-based growth across its regions. In North America, revenue rose 11% to £846 million.

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Sage reiterated guidance for 2025, which points to revenues growth of 9% or above and a 50-100 basis points margin increase. Shares later stood 22.5p lower at 1,235p, still 15% higher over the last year.

Panmure Liberum said today that management had done a great job over the last few years investing in the business both organically and through acquisition. Subscriptions are now 83% of revenues, while 97% of revenues are recurring.

However, it points out that the group’s main peers have grown faster and that this increases competitive pressure in the medium term. Having recently increased its target price to 1,300p, the broker retained a Hold rating following the update.