Housebuilder Redrow has secured a £300m lending facility under the Bank of England’s emergency coronavirus financing scheme.
The developer, which has furloughed 80 per cent of its staff using the job retention scheme, is also in talks to extend its existing revolving credit facility by £100m to £350m.
Redrow said this morning that it expects the talks with its banks to conclude by the end of the month.
In another move to preserve cash during the coronavirus pandemic, Redrow’s board and directors announced that they will take a salary cut of 20 per cent for the duration of the crisis.
Redrow executive chairman John Tutte said this morning: “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.”
The FTSE 250 company had already announced it would cancel its 10.5p interim dividend, amounting to £37m, which was due to be paid this month.
Redrow previously said it was expecting a sharp drop in sales due to the coronavirus crisis, as potential buyers hold off making a move, while building would be impacted by labour and material shortages.
Trading in the first 12 weeks of the second half to 20 March remained resilient, the company said last month.
The value of net reservations was up £121m at £525m compared to last year, and Redrow’s order book stood at more than £1.4bn.