As construction workers have been designated as key workers during the health crisis, Redrow, and other housebuilders are permitted to continue to work on schemes.
The group said: “Our main priority is to safeguard the well-being of our workforce and customers. Sites currently remain open with strict precautions in place including enhanced levels of cleaning, additional hygiene facilities and social distancing.
“Our My Redrow online portal enables customers to interact remotely with us online and our centralised systems are supporting many of our colleagues to work from home.”
On the trading side, the group said the business “remained resilient” in the first 12 weeks of the second half of the year to 20 March, with the value of net reservations up £121m at £525m compared with last year.
The weekly reservation rate per outlet averaged 0.86 against 0.72 at the same point last year.
The group added: “Our order book is very strong, currently standing at over £1.4bn. Last week net private reservations were in line with the previous year at 95 plots, but visitors to site were substantially down and the cancellation rate increased.
“As the Government’s escalating measures to contain the spread of the virus take effect, it is inevitable our sales rate will be seriously impaired over the coming weeks and build output will be significantly affected by labour and material shortages. We also expect outlet openings to slip as local authorities delay planning committee meetings.”
As a result of the uncertainty, the group has cancelled its 10.5p interim dividend amounting to £37m, which was due to be paid on 9 April 2020.
“Once we have more certainty over the impact on the industry and our business we will make an announcement over future dividend distributions together with an update on trading” the company added.
Source: Residential - propertyweek.com
