9th Apr 2020 09:01
(Alliance News) - Housebuilder Redrow PLC on Thursday said it has furloughed a vast majority of its staff and added that it is eligible to receive GBP300 million support as part of the UK's Covid-19 corporate financing facility.
Redrow said the financing facility, as part of UK measures to help firms during the pandemic, is currently undrawn.
The FTSE 250 firm added that it is in negotiations for an extra GBP100 million of headroom under its revolving credit facility. This would see the facility boosted to GBP350 million from GBP250 million.
"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," Redrow said.
Elsewhere, the board and senior directors volunteered for a 20% paycut.
Executive Chair John Tutte: "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."
Redrow shares were 9.4% higher at 442.85 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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