27th Mar 2020 09:17
(Alliance News) - Redrow PLC said Friday it has taken the step to close all of its sites and offices, due to the housebuilder's supply chain taking significant hits in the last few days.
Although Redrow said it has a strong balance sheet with total net assets of GBP1.6 billion, the group has started discussions with a syndicate of six banks for additional banking facilities over and above the current GBP250 million revolving credit facility.
Ewloe, UK-based Redrow said it intends to increase the additional accordion facility of GBP50 million to GBP100 million. In addition, the group has submitted an application to the Bank of England for eligibility for the UK government's Covid-19 corporate financing facility.
Looking ahead, Redrow said it will start to reopen sites and offices once its supply chain starts to show signs of normality.
On Tuesday, Redrow said it was inevitable that its sales rate would be "seriously impaired" over the coming weeks, while build output is affected by labour and material shortages.
"These are unprecedented times. The actions we have announced today will give us the flexibility to manage the business through this turbulent period to ensure we are ready to resume production when it is safe to do so," said Executive Chair John Tutte.
UK government ministers have urged house buyers to put their imminent property moves on hold during the UK lockdown. Housing Secretary Robert Jenrick said those due to move house should rearrange to a new date and delay the process of changing property, even those planning to move on Friday.
Shares in Redrow were down 6.6% at 375.48 pence on Friday in London.
By Dayo Laniyan; [email protected]
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