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Redrow PLC (RDW)

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Friday 27 March, 2020

Redrow PLC

COVID-19 Update

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. £1.6bn. 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 £250m revolving credit facility. It is our intention to increase the additional 'accordion' facility of £50m that is available to us to £100m. 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 £1.4bn of which £0.9bn 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


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