16th Apr 2020 09:25
(Alliance News) - Barratt Developments PLC on Thursday said it expects further home sales and reservations to be "very limited" as its sales centres remain closed due to the Covid-19 pandemic.
The housebuilder said that so far in its financial year to June 30, it has completed 11,713 homes, up 6.9% annually from 10,954 homes.
Between March 23 and April 12, Barratt delivered 1,349 home completions. The FTSE 100 firm's sales centres, construction sites and offices were closed due to the health crisis.
Forward sales are 12,376 homes worth a total of GBP2.89 billion.
On Thursday it reiterated that it all financial guidance for the current financial year was suspended.
It is in the process of furloughing 85% of its staff.
"To reflect the ongoing focus on preserving cash within the business, as agreed with the remuneration committee, all executive directors, the wider executive and regional managing director team, the chair and the non-executive directors have agreed to a voluntary 20% reduction in base salary and fees, effective from April 2020, until such time as the group is able to restart work on site," Barratt said.
The company added that it is "financially strong", with cash of GBP450 million
Barratt added: "The group has total committed facilities and private placement notes of GBP900 million, comprising a GBP700 million undrawn revolving credit facility and fully drawn GBP200 million US private placement notes. The group continues to explore other government funding initiatives."
Barratt shares were 4.5% higher at 442.70 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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