Redrow PLC COVID-19 Update (7908H)
March 27 2020 - 2:00AM
UK Regulatory
TIDMRDW
RNS Number : 7908H
Redrow PLC
27 March 2020
FOR IMMEDIATE RELEASE
Friday 27 March 2020
REDROW plc
COVID-19 Update
Redrow plc is continuing to closely monitor the rapidly evolving
COVID-19 situation. As we have previously stated, our main priority
is to safeguard the well-being of our workforce and customers.
Many of our office-based colleagues have been working from home
and earlier in the week we closed our sales centres. We also
reduced our workforce on sites to target our construction
operations on plots that are due to complete over the coming weeks.
However, it has become increasingly impracticable as our supply
chain has been significantly impacted in recent days, as a result
the Board has now decided to go further and commence with immediate
effect, an orderly and safe closure of all of our sites and
offices.
We have a strong balance sheet with total net assets of c.
GBP1.6bn. Despite this, as a consequence of the Board's decision to
close sites, and the need to retain some flexibility through a
prolonged period of inactivity, the company has commenced
discussions with its syndicate of six banks in respect of
additional committed banking facilities over and above the current
GBP250m revolving credit facility. It is our intention to increase
the additional 'accordion' facility of GBP50m that is available to
us to GBP100m. We have also submitted an application to the Bank of
England for eligibility for the Government's COVID-19 Corporate
Financing Facility.
We are continuing to work proactively to protect our cash flow,
and in addition to the measures we announced earlier in the week,
we will immediately commence 'furloughing' a significant proportion
of our employees under the Government's Job Retention Scheme.
When there is a return to normality in the supply chain, and we
are satisfied it is safe for our workforce to return to work, we
will reopen sites and recommence production with an initial focus
on fulfilling our substantial order book that stands at GBP1.4bn of
which GBP0.9bn is contracted.
John Tutte, Executive Chairman said, "These are unprecedented
times. The actions we have announced today will give us the
flexibility to manage the business through this turbulent period to
ensure we are ready to resume production when it is safe to do
so".
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
TSTKQLFLBXLFBBV
(END) Dow Jones Newswires
March 27, 2020 03:00 ET (07:00 GMT)
Redrow (LSE:RDW)
Historical Stock Chart
From Apr 2024 to May 2024
Redrow (LSE:RDW)
Historical Stock Chart
From May 2023 to May 2024