25th Mar 2020 09:53
(Alliance News) - Countryside Properties PLC said Wednesday it has suspended all construction work on its sites and closed all of its sales offices.
The housebuilder said these actions will "inevitably" hurt its financial performance, but it remains unclear how long the measures will remain in place.
As a result, Countryside is withdrawing its financial guidance for the current financial year and is suspending dividend payments until further notice.
Countryside said it has a "strong" balance sheet, with available cash of GBP110 million. It also has a current GBP300 million revolving credit facility in place until May 2023.
"Given the current uncertainty around Covid-19, the board has taken the prudent decision to commence discussions in respect of additional financing facilities, should they be required, and we will update on these discussions in due course," Countryside added.
The company noted its trading up until mid-March was in line with internal expectations, with improving visitor levels and strong reservation rates and a strong order book for affordable and Private Rented Sector homes.
Shares in Countryside Properties were down 1.7% in London on Wednesday morning at 285.80 pence each.
By Paul McGowan; [email protected]
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