leadf
logo-loader
RNS
viewRedrow PLC

Redrow PLC - COVID-19 Update

RNS Number : 2955H
Redrow PLC
24 March 2020
 

 

FOR IMMEDIATE RELEASE

 

 

Tuesday 24 March 2020

 

 

REDROW plc

 

COVID-19 Update

 

Redrow plc is providing an update today on the impact of the COVID-19 pandemic on its business, along with the measures it is taking to manage the risks to its stakeholders.

 

Our main priority is to safeguard the well-being of our workforce and customers. Sites currently remain open with strict precautions in place including enhanced levels of cleaning, additional hygiene facilities and social distancing. Our My Redrow online portal enables customers to interact remotely with us online and our centralised systems are supporting many of our colleagues to work from home.

 

Trading has remained resilient in the first 12 weeks of the second half to 20 March 2020, with the value of net reservations up £121m at £525m compared to last year. The weekly reservation rate per outlet has averaged 0.86 against 0.72 last year over the same 12 week period. Our order book is very strong, currently standing at over £1.4bn. Last week net private reservations were in line with the previous year at 95 plots, but visitors to site were substantially down and the cancellation rate increased. As the Government's escalating measures to contain the spread of the virus take effect, it is inevitable our sales rate will be seriously impaired over the coming weeks and build output will be significantly affected by labour and material shortages. We also expect outlet openings to slip as local authorities delay planning committee meetings.

 

We have a strong balance sheet together with £250m of committed facilities and we are working proactively to protect our cash flow. Net debt currently stands at £116m and we expect this to reduce substantially over the coming month as a high volume of homes legally complete. We have put on hold activity in the land market and we are working to actively reduce our work in progress levels across our sites.

 

Given the ongoing uncertainty, we have also decided to cancel our 10.5p interim dividend amounting to £37m which was due to be paid on 9 April 2020 to holders of ordinary shares on the register at the close of business on 6 March 2020. Once we have more certainty over the impact on the industry and our business we will make an announcement over future dividend distributions together with an update on trading.

 

We are reassured by the measures the Government are putting in place to help businesses. During these unprecedented times we remain focused on delivering quality homes whilst at the same time doing everything we can to protect and support our customers, colleagues and subcontractors.

 

Enquiries:

 

Redrow plc

John Tutte, Executive Chairman                           

01244 527411

Barbara Richmond, Group Finance Director     

01244 527411



Instinctif Partners

0207 457 2020

Mark Garraway

07814 379412

James Gray

07583 936031

 

 

LEI Number:

2138008WJZBBA7EYEL28

 

Announcement Classification:

3.1: Additional regulated information


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTFXLLLBXLZBBX

Quick facts: Redrow PLC

Price: 378.6

Market: LSE
Market Cap: £1.33 billion
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE