Redrow PLC COVID-19 Update (2955H)
March 24 2020 - 3:00AM
UK Regulatory
TIDMRDW
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
GBP121m at GBP525m 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 GBP1.4bn. 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 GBP250m of
committed facilities and we are working proactively to protect our
cash flow. Net debt currently stands at GBP116m 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 GBP37m 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
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END
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