30th Apr 2020 14:38
(Alliance News) - Bellway PLC on Thursday announced a range of cash-conservation measures amid Covid-19 uncertainty as it reported a dip in year-on-year trading.
The FTSE 250-listed housebuilder said that in the period from August 1 to April 26, it sold 6,506 homes, down from 6,596 homes sold in the comparative period a year prior.
Its order book value is currently GBP1.6 million comprising 5,976 plots, down from GBP1.7 million made up of 6,334 plots.
Bellway assured that, while its sales centres have been closed since March 23, it continues to receive "a modest number" of telephone reservations. However it warned that it expects sales activity to remain "severely restrained" until sales outlets reopen.
More positively, Bellway said it will resume work on building sites on a phased basis, starting from next Monday.
The company said that in order to conserve cash, it is deferring all discretionary land expenditure and temporarily halting recruitment.
It is postponing its decision in relation to the payment of its interim dividend, first announcing that move back in March
Bellway added that it has been confirmed as an eligible issuer for the UK government's Covid Corporate Financing Facility with an issuer limit of GBP300 million.
The Covid Corporate Financing Facility is designed to help larger firms to maintain liquidity amid disruption caused by the Covid-19 pandemic, through the purchase of short-term debt in the form of commercial paper.
The company said that it has also extended the maturity date of tranches totalling GBP125 million of its GBP545 million in committed bank facilities to July 2021. While currently undrawn, the Covid financing facility in addition to existing bank facilities amounts to GBP845 million of available funds.
Shares in Bellway were trading 4.5% lower at 2,677.43 pence each on Thursday afternoon in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Bellway