Barratt Developments - COVID-19 Update
"Our first priority is the health and safety of our employees, sub-contractors and customers. We have created a detailed set of working practices and protocols for employees and sub-contractors to ensure that we can reopen our construction sites safely, in a phased and measured way, which minimises risk. In line with our commitment to put our customers first, we will be prioritising the completion of those homes that our customers have already exchanged or reserved.
I would also like to thank our employees who have been fantastic during this challenging time, both those who have worked hard to get us ready to restart and our employees who are not currently working, many of whom have been inspirational as volunteers in their local communities."
Our first priority continues to be the health and safety of our employees, sub-contractors and customers
As previously announced, in line with our commitment to health and safety, we took the decision to temporarily close all of our sales centres, construction sites and offices due to the COVID-19 pandemic. All locations were closed safely and securely by
Since then, we have developed a detailed set of working practices and protocols so that our construction sites can operate safely and in line with the latest guidance from Government, Public Health Authorities and the
Work on our construction sites will recommence from 11 May, initially to implement the changes required under our new working practices and protocols. We will then start a phased return to construction, with 180 sites - around 50% of the total - in the first phase.
We do not plan to restart work on our sites in
Looking after our customers
In line with the lockdown retail regulations, we are not reopening our sales centres or show homes at this time, but continue to look after our customers remotely. We have established revised working practices for our sales centres to enable them to reopen quickly and operate safely when restrictions are lifted.
Since our sales centres closed we have continued to see customer interest, albeit at reduced levels compared to the period to
Supporting our communities
As a business committed to doing the right thing we have been supporting the NHS and our communities through the COVID-19 pandemic.
We have contributed
Funding and liquidity
The Board implemented immediate measures to manage the Group's cost base and cash flows to ensure resilience, as previously announced these include:
· Suspending all land buying activity
· Ceasing all recruitment activity
· Postponing non-essential capital expenditure
· Actively managing cash flows whilst ensuring that we are paying our suppliers and sub‐contractors on time
· Cancelling the interim dividend which was due to be paid on
· Furloughing a proportion of our employees at their normal pay
· A voluntary 20% reduction in base salary and fees for all Executive Directors, the wider Executive and Regional Managing Director team, the Chairman and the Non-Executive Directors.
The Group continues to be financially strong, with a well-capitalised balance sheet and a robust cash and liquidity position. As at
The Board announced on
Our experienced Board remains focused on taking the actions necessary to maintain the operational and financial strength of the business while planning the safe reopening of construction sites, sales centres and show homes so that we can continue to lead the industry in the delivery of the high quality homes the country needs.
Unless otherwise stated, all numbers quoted exclude Joint Ventures (JVs) throughout this statement
1 Cash comprises cash and cash equivalents
2 The revolving credit facility has an expiry date of
3 The US private placement notes have an expiry date of
For further information please contact:
Analyst / investor enquiries
Claire Adams, Head of Investor Relations 01530 278 270
Tim Collins, Head of
Jonathan Glass / Rosie Oddy 020 7404 5959
This trading update contains certain forward-looking statements about the future outlook for the Group. Although the Directors believe that these statements are based upon reasonable assumptions, any such statements should be treated with caution as future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
Financial reporting calendar
The Group's next scheduled announcement of financial information is the trading update on
This information is provided by RNS, the news service of the
Quick facts: Barratt Developments
Market Cap: £5.27 billion
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