20th Apr 2020 09:34
(Alliance News) - Housebuilder Redrow PLC on Monday said it has secured an additional GBP100 million under the company's current revolving loan facility and has gained eligibility to access further funding of up to GBP300 million under the UK government's Covid Corporate Financing Facility.
The FTSE 250-listed company also said that John Tutte has agreed to delay the step back to non-executive chair from his current executive role until company's annual general meeting in November, due to the "unprecedented impact of Covid-19 on the business and the housebuilding industry".
Tutte had been scheduled to move to non-executive chair role on June 30.
"John will support the senior management team to ensure an orderly return to operations when the business is satisfied it is safe to do so. It remains John's intention to retire from the board ahead of the AGM in 2021. As previously announced, Matthew Pratt will take up the position of group chief executive with effect from 1st July 2020," Redrow explained.
Earlier in April, Redrow was forced to furlough around 80% of its workforce under the UK government's job retention scheme to save cash, as construction activity came to a halt amid the government-imposed lockdown to control the spread of coronavirus. The company's directors also had volunteered for a 20% paycut.
Redrow now has GBP350 million of committed facilities under its revolving credit facility which matures at the end of December 2022. In addition, it has access to the GBP300 million government loan.
The FTSE 250 stock was down 3.0% early Monday in London at 396.54 pence.
By Tapan Panchal; [email protected]
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