TIDMBDEV
RNS Number : 5806L
Barratt Developments PLC
01 May 2020
1 May 2020
Barratt Developments PLC
COVID-19 Update
Barratt Developments PLC (the 'Group'), Britain's largest
housebuilder, today provides an update on its plans for a phased
reopening of its construction sites, on its support for local
communities and the NHS and on the evolving impact of COVID-19 on
the business. Barratt Developments PLC has a year end of 30
June.
David Thomas, Chief Executive of Barratt Developments PLC:
"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 27 March
2020.
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 Construction Leadership Council. This
includes changes to signage, site welfare facilities and compounds,
site access and walkways. We have already successfully implemented
these measures on one of our sites as a pilot. A nominated Social
Distancing Marshal will be present on all sites to ensure policy
compliance and we will provide induction, training and support for
our employees and sub-contractors.
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 Scotland at this
time and will keep this position under review.
On 16 April 2020, we announced that we were in the process of
furloughing around 85% of our employees, at their normal pay, until
at least the end of May. With the phased reopening of our sites, a
significant proportion of our workforce will be able to return to
work during May.
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 22
March 2020. As expected, since closing our sales centres, we have
experienced a low level of reservations. We expect reservations to
continue at low levels until our sales centres and show homes
reopen. Initially our construction activities will prioritise sold
plots at advanced stages of construction, and we therefore expect a
limited number of additional completions this financial year. As at
26 April 2020, the Group has completed 11,776 homes (2019: 11,723
homes) (including JVs). Our total forward sales are 12,271 homes at
a value of GBP2,852.9m (including JVs).
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 GBP100,000 to the NHS Charities Together and
donated GBP50,000 to The Sun's 'Who Cares Wins Appeal'. We have
donated our PPE, including more than 5,000 FFP3 face masks to local
NHS services and 400 of our defibrillators to the St John's
Ambulance in England and Wales and St Andrew's First Aid in
Scotland. In addition to our existing sponsorship of The Big Issue,
we have donated an extra GBP25,000 to their Appeal to support their
vendors who are unable to sell the magazine during the lockdown
period.
The Barratt and David Wilson Community Fund, and our local
divisions, have been working with local charities and organisations
in their areas who are helping communities respond to the effects
of COVID-19. Meanwhile we are encouraging employees across England,
Scotland and Wales to volunteer and use their time to do what they
can to help people during this difficult period.
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 11 May 2020
-- 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 28 April 2020 the Group had c. GBP430m of cash(1) .
The Group has total committed facilities and private placement
notes of GBP900m, comprising a GBP700m undrawn revolving credit
facility(2) and fully drawn GBP200m US private placement notes(3) .
The Group is also pleased to have received confirmation that it is
eligible to access funding under the Covid Corporate Financing
Facility, should that be required.
Financial guidance
The Board announced on 25 March 2020 that it had suspended all
forward guidance until such time that the overall impact of
COVID-19 on the Group becomes clearer.
Looking ahead
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.
Notes
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 November 2024
3 The US private placement notes have an expiry date of August 2027
Further information
For further information please contact:
Barratt Developments PLC
Jessica White, Chief Financial Officer 01530 278 259
Analyst / investor enquiries
Claire Adams, Head of Investor Relations 01530 278 270
Media enquiries
Tim Collins, Head of Corporate Communications 020 7299 4874
Brunswick
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 8 July 2020.
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 rns@lseg.com or visit www.rns.com.
END
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