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Redrow PLC - COVID-19 Update

RNS Number : 2773J
Redrow PLC
09 April 2020
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2016. UPON PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

 

FOR IMMEDIATE RELEASE

 

 

Thursday 9 April 2020

 

 

REDROW plc

 

COVID-19 Update

 

Redrow plc is providing a further update to that issued on 27 March 2020 on the impact of the Covid-19 pandemic on the business, and in particular, the progress made on securing additional committed banking facilities.

 

We are pleased to announce Redrow plc has been confirmed as an eligible issuer for the Covid Corporate Financing Facility (CCFF) with an issuer limit under the facility of £300m. The facility is currently undrawn.

 

Negotiations for the additional £100m of headroom under the Group's existing Revolving Credit Facility (RCF) with its six relationship banks are progressing well and the documentation is expected to be concluded by the end of April. This will result in the existing RCF increasing from £250m to £350m. A further update will be provided in due course.

 

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. On 27 March 2020, the Board and senior Directors in the business announced internally they had volunteered to take a 20% cut in salary for the duration of the crisis. Since then, the wider directorate in the business have also volunteered to take a salary cut of 20%.

 

John Tutte, Executive Chairman said, "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".

 

Enquiries:

 

Redrow plc

John Tutte, Executive Chairman                           

01244 527411

Barbara Richmond, Group Finance Director     

01244 527411



Instinctif Partners

0207 457 2020

Mark Garraway

07771 860938

James Gray

07814 379412

 

The person responsible for the release of this announcement is Graham Cope, Group Company Secretary of Redrow plc.

 

LEI Number:

2138008WJZBBA7EYEL28

 

Announcement Classification:

2.2: Inside information


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Redrow PLC

Price: 464.4

Market: LSE
Market Cap: £1.64 billion
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