Glenveagh Properties PLC COVID-19 Update (7531H)

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RNS Number : 7531H

Glenveagh Properties PLC

26 March 2020

26 March 2020

Glenveagh Properties plc

COVID-19 Update

Glenveagh Properties plc ("Glenveagh" or the "Group") a leading Irish homebuilder today announces an update on the impact of the COVID-19 pandemic on the Group.

Glenveagh remains focused on the wellbeing of our people and we are taking all the necessary steps to maintain the health and welfare of our employees, our sub-contractors and our customers. Aligned with Government recommendations the Group has implemented wide ranging measures across our sites to limit the spread of COVID-19. These measures allow all sites to remain operational currently.

Glenveagh's sales performance in the current financial year has been in line with the Board's expectations with over 475 units sold, signed or reserved at the time of our full year results[1] reflecting continued strong demand across our starter-home focused portfolio. To facilitate customers during the period where COVID-19 restrictions remain in place, virtual viewings are now available across all the Group's show villages. Reservations, signings and closings have continued in recent weeks albeit the pace of new reservations has slowed as the restrictions have widened.

Despite the measures implemented by the Group, Glenveagh's ability to achieve its 2020 delivery targets will be dependent on how long the advised restrictions remain in place and the extent to which future restrictions impact construction progress on-site. As a result, the Group announces that it is suspending all existing FY20 guidance until both the severity and duration of the COVID-19 impact becomes clearer. This approach in no way diminishes the Board's confidence in the Group's ability to take advantage of the significant medium and long-term opportunity that exists.

Glenveagh is in a strong position as a market leader and continues to benefit from a robust balance sheet with good liquidity. At 31 December 2019 our net cash position was EUR53 million (Net Debt approximately EUR4 million at 25 March). Current cash resources and available committed facilities total EUR121 million (plus a further EUR125 million of uncommitted facilities). In addition, the Group has significant net assets (EUR867 million[2]), no outstanding land payments and strong covenant headroom. We are monitoring the situation closely and the Board will take steps to maximise financial flexibility including a deferral of further working capital and land investment if such steps are in the best long-term interest of the business and all its stakeholders.

We are in a rapidly evolving environment and will update the market in due course. Glenveagh will issue a trading update on 19 May 2020 in advance of the AGM.

Glenveagh's Chief Executive Stephen Garvey commented:

"The safety of our employees, our sub-contractors and our customers are foremost in our mind at this time. We fully support the unprecedented steps which the Government has taken to protect public health and to limit the spread of COVID-19. From a business perspective, while we are likely to experience a challenging near-term environment, our strong balance sheet and customer profile (balanced across private, state and institutional buyers) leaves Glenveagh in the strongest possible position to deal with whatever eventualities are to come."

For further information please contact:

 
 Investors:                           Media: 
 Glenveagh Properties plc             Gordon MRM 
  Michael Rice (CFO)                   Ray Gordon 087 241 7373 
  Conor Murtagh (Director, Strategy    David Clerkin 087 830 1779 
  & IR)                                [e-mail] 
  [e-mail] 
                                     ---------------------------- 
 

Note to Editors

Glenveagh Properties plc, listed on Euronext Dublin and the London Stock Exchange, is a leading Irish homebuilder with a focus on strategically located developments in the Greater Dublin Area, Cork, Limerick and Galway.

Glenveagh delivers across three distinct business segments - Suburban, Urban and Partnerships - as a single business, capitalising on scale advantages and investing to optimise return on capital.

www.glenveagh.ie

[1] 28 February 2020

[2] At 31 December 2019

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March 26, 2020 10:21 ET (14:21 GMT)