19th Mar 2020 09:36
(Alliance News) - Crest Nicholson Holdings PLC on Thursday said it has cancelled its 21.8 pence per share final dividend and is suspending all financial guidance until the impact of the Covid-19 spread "becomes clearer".
Shares in the housebuilder were 13% lower at 204.60p each in London on Thursday morning.
The housebuilder said that although the measures are "significant steps to take", it is a prudent move amid the "unprecedented and unpredictable situation".
"The executive leadership team has also moved quickly in identifying further measures that will increase cash generation, and reduce cash outflow, enabling the business to trade through this period of prolonged uncertainty," Crest Nicholson said.
Crest Nicholson said it has moved to fully draw a GBP250 million credit facility, which would leave the company with available cash of GBP185 million.
The firm added: "In the ordinary course of business, the company has a strong balance sheet and has made good progress in reducing levels of capital employed in the current financial year. The board has only considered it necessary to take such decisive action because of the anticipated impact from Covid-19.
Since the start of 2020, Crest Nicholson added that it has traded in-line with internal expectations. It explained it has seen "continued improvements in website traffic, footfall and reservations".
The company added that its annual general meeting in London on Tuesday is still penned to take place though it will "minimise social interactions".
By Eric Cunha; [email protected]
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