Housebuilder boosts financial stability and announces boardroom change

John Tutte

Housebuilder Redrow has announced additional funding reserves, and a change within senior management.

The group, based in Ewloe, near Chester, said the actions are aimed to mitigate the impact of the COVID-19 pandemic on the business.

Further to the company statement on April 9, that the group had been confirmed as an eligible issuer for the Covid Corporate Financing Facility with an issuer limit of £300m, Redrow said it has now successfully concluded negotiations with its six relationship banks regarding the request for £100m additional funding under its existing Revolving Credit Facility.

The company now has £350m of committed facilities under the RCF, which matures at the end of December 2022.

In addition, it said that, as a consequence of the unprecedented impact of COVID-19 on the business and the housebuilding industry, John Tutte has agreed to delay the step back to non-executive chairman from June 30, until the company’s AGM in November 2020.

It said Mr Tutte will support the senior management team to ensure an orderly return to operations when the business is satisfied it is safe to do so.

And it added that it remains his intention to retire from the board ahead of the AGM in 2021.

As previously announced, Matthew Pratt will take up the position of group chief executive with effect from July 1, 2020.