Redrow PLC COVID-19 Update (7908H)

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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

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March 27, 2020 03:00 ET (07:00 GMT)