Barratt Developments - COVID-19 Update
Our first priority is employee, sub-contractors and customer safety
During this difficult period, our priority is to provide a safe environment for all our employees, sub-contractors and customers. Throughout, the Board and Executive team have taken steps to ensure that the guidance of
COVID-19 impact and mitigating actions
The Board continues to closely monitor Government guidance in respect of COVID-19. Whilst it is too early to make a reliable forecast about the duration or impact of the pandemic, and with our sites now closing, the Board expects it to have a significant impact on both construction output and reservations.
The Board has acted rapidly, taking measures to manage the Group's cost base and cash-flows to ensure resilience. These actions have included:
· Suspending all land buying activity
· Ceasing all recruitment activity
· Postponing all non-essential capital expenditure
· Actively managing cash flows whilst ensuring that we are paying our suppliers and sub-contractors on time
We will continue to assess further cost-saving opportunities available to us as the situation develops, whilst balancing the long-term requirements of the business.
Given the uncertainties caused by the impact of COVID-19, the Board believes it is appropriate to cancel the interim dividend of
Strong Balance Sheet
The Group continues to have a very strong balance sheet and at
The Group started the calendar year well with good customer demand for our high quality new homes across the country and, until the past week, our trading performance was in line with expectations. The Group delivered 10,364 home completions (2019: 9,437 home completions) (including JVs) in the period to
Given the ongoing uncertainty, we are unable to quantify the impact of COVID-19 on our financial and trading performance at this stage. Accordingly the Group is suspending all existing financial guidance.
The business is facing this challenge from a position of strength, with a robust balance sheet, a highly skilled workforce and an experienced Board. Our customers and employees will remain at the heart of every decision we make. The Board is focused on taking the right actions so that we will emerge from this pandemic well-placed to continue to deliver the high quality housing the country needs.
Unless otherwise stated, all numbers quoted exclude Joint Ventures (JVs) throughout this statement
1 Based upon
2 Cash comprises cash and cash equivalents
3 The revolving credit facility has an expiry date of
4 The US private placement notes have an expiry date of
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Analyst / investor enquiries
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.
This announcement contains inside information. The person responsible for arranging for the release of this announcement on behalf of
This information is provided by RNS, the news service of the
Quick facts: Barratt Developments
Market Cap: £5.12 billion
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