Redrow plans return to construction on May 18

Flintshire-based house building giant Redrow plc said on Monday it “intends to commence mobilising sites” in the week starting May 11 “with a phased return to construction” on May 18.

Redrow said net reservations have been running at very low levels since lockdown was imposed.

In a trading update Redrow said: “Redrow announced the orderly and safe closure of all of its sites on 27th March 2020 and decided not to reopen until it was safe to return to work and it could rely upon a functioning supply chain.

“Since then, the Government have made it clear they would like to see construction sites operating provided they can do so safely with stringent social distancing measures in place.

“Redrow is now satisfied these conditions can be met over the next two weeks and therefore intends to commence mobilising sites week commencing 11th May 2020 with a phased return to construction on 18th May 2020.

“Mobilisation will include putting robust social distancing protocols and physical measures in place.”

On its balance sheet and order book, Redrow said: “Redrow has a strong balance sheet.

“In the month of April, the business generated £62m of cash from legal completions.

“In addition, as part of our measures to protect our cash flow, a number of land payments have been successfully deferred into 2021 and later.

“As a result, net debt at the end of June is now expected to be c.£200m.

“We have recently extended our Revolving Credit Facility to £350m and we have been accepted as an issuer under the Government’s CCFF with an issuer limit of £300m.

“We also have an order book of over £1.3bn, of which £0.9bn is contracted.”