Redrow plc (LON:RDW) has today provided 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, Redrow 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”.