Redrow PLC COVID-19 Update (2773J)

TIDMRDW

RNS Number : 2773J

Redrow PLC

09 April 2020

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2016. UPON PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE

Thursday 9 April 2020

REDROW plc

COVID-19 Update

Redrow plc is providing a further update to that issued on 27 March 2020 on the impact of the Covid-19 pandemic on the business, and in particular, the progress made on securing additional committed banking facilities.

We are pleased to announce Redrow plc has been confirmed as an eligible issuer for the Covid Corporate Financing Facility (CCFF) with an issuer limit under the facility of GBP300m. The facility is currently undrawn.

Negotiations for the additional GBP100m of headroom under the Group's existing Revolving Credit Facility (RCF) with its six relationship banks are progressing well and the documentation is expected to be concluded by the end of April. This will result in the existing RCF increasing from GBP250m to GBP350m. A further update will be provided in due course.

Meanwhile, we continue to take measures to proactively protect our cash flow. Currently around 80% of the workforce has been furloughed under the Government's Job Retention Scheme. On 27 March 2020, the Board and senior Directors in the business announced internally they had volunteered to take a 20% cut in salary for the duration of the crisis. Since then, the wider directorate in the business have also volunteered to take a salary cut of 20%.

John Tutte, Executive Chairman said, "The response from colleagues and customers during these unparalleled times has been magnificent and I am grateful for their continuing support and understanding. The positive progress we have made on securing additional banking facilities means we can now finalise plans for our valued workforce and supply chain, to make an orderly return to work when we are advised 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                      07771 860938 
 James Gray                         07814 379412 
 

The person responsible for the release of this announcement is Graham Cope, Group Company Secretary of Redrow plc.

LEI Number:

2138008WJZBBA7EYEL28

Announcement Classification:

2.2: Inside 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 [e-mail] or visit www.rns.com.

END

UPDBLGDSUBGDGGI

(END) Dow Jones Newswires

April 09, 2020 02:00 ET (06:00 GMT)