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Redrow to return to building work next month

Reservations on new homes have been running at a low level since the sites shut down

Redrow PLC -
The order book is worth £1.3bn, of which is £900mln is contracted

 

Redrow PLC (LON:RDW) has said it will resume work on its sites from next month making it the fourth housebuilder to announce a return in the past few days.

Taylor Wimpey, Vistry and Persimmon said last week that site preparation would begin either this week or next ahead of a full resumption.

Redrow shut its sites on 27 May but said the government has now made it clear it wants construction sites to open if they can do so with safe social distancing measures.

The homebuilder said it was satisfied it can meet the conditions over the next two weeks and will mobilise sites in the week commencing 11th May with a phased return to construction from the 18th.

Reservations on new homes have been running at a low level since the sites shut down, Redrow added, with activity also affected by the government’s advice to people not to move unless there is no alternative.

Sales offices at sites remain shut, it said, and re-opening these will be important for a return to normal trading.

The order book is worth £1.3bn, of which is £900mln is contracted while completions so far in April had generated cash of £62mln.

Net debt at the end of June is expected to be £200mln, with its revolving credit facility recently extended to £350m while it has been granted a £300mln facility from the government’s coronavirus loan scheme.

Quick facts: Redrow PLC

Price: 456.4 GBX

LSE:RDW
Market: LSE
Market Cap: £1.61 billion
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