Construction companies are among the most undervalued on the stock exchange, according to a report by business adviser RSM Robson Rhodes
Only firms in the leisure and oil and gas sectors are more undervalued in relation to their average business growth, according to Robson Rhodes' Unloved Companies Index.

The report says that housebuilders have outperformed the FTSE all-share index but their cash flow record is considered weak.

The report says: "In terms of the stock market's view of housebuilding it has become received wisdom that growth in the sector does not generate cash.

"This view is supported by the economics of the industry, where the lag between land acquisition and house sale can be comparatively long, resulting in a considerable cash lock-up."

Seven construction firms were among the top 50 most unloved companies. Wimpey came in at number 22, with McCarthy & Stone and Balfour Beatty at 34 and 37. Other construction entrants on the list were Redrow, Barratt, Westbury and Bellway.