24th Mar 2020 09:42
(Alliance News) - Housebuilder Redrow PLC said Tuesday that it has decided to suspend its 10.5 pence per share dividend for the first half of year ending June 30 due to the ongoing Covid-19 uncertainty, despite resilient trading so far.
FTSE 250-listed Redrow said trading for the 12 weeks ending March 20 was resilient, with the value of net reservations rising by GBP121 million at GBP525 million compared to the year before.
The weekly reservation rate per outlet averaged 0.86 compared to 0.72 the same period the prior year, while the order book remains strong at GBP1.4 billion.
Looking ahead, as the UK government escalates measures to contain the spread of the virus, Redrow said it is inevitable that its sales rate will be "seriously impaired" over the coming weeks, while build output is affected by labour and material shortages.
In addition, the group expects outlet openings to slip as local authorities delay planning committee meetings.
However, Redrow said its balance sheet remains strong, with GBP250 million in committed facilities, and net debt of GBP116 million, which is expected to drop substantially over the next month on the legal completion of a high volume of homes.
"We are reassured by the measures the government are putting in place to help businesses. During these unprecedented times we remain focused on delivering quality homes whilst at the same time doing everything we can to protect and support our customers, colleagues and subcontractors," Redrow stated.
Shares in Redrow were up 1.0% at 342.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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