StockMarketWire.com - Home builder Redrow said it had cancelled its interim dividend amid expectations its sales rate would be 'seriously impaired' over the coming weeks.

The company had intended to pay an interim dividend of 10.5p per share.

Trading had remained resilient in the first 12 weeks of the second half to 20 March, with the value of net reservations up £121m at £525m compared to last year.

The weekly reservation rate per outlet had averaged 0.86 against 0.72 last year over the same 12-week period.

Redrow said its order book was 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,' Redrow said.

'We also expect outlet openings to slip as local authorities delay planning committee meetings.'

The company said it had a 'strong' balance sheet together with £250m of committed facilities and was 'working proactively to protect our cash flow'.

Net debt currently stood at £116m and was expected fell substantially over the coming month as a high volume of homes legally complete.




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