Barratt Developments said it is facing the shutdown from a “position of strength”, with £380 million in the bank and access to another £900 from its lenders.
The Leicestershire housebuilder said it had closed all its sales centres, construction sites and offices, and introduced home working where possible.
It is the latest in a list of companies, including Bellway, Persimmon, Galliard Homes, Taylor Wimpey and Bovis, who have are closing construction sites to stop the spread of Covid-19.
Barratt said employee, sub-contractors and customer safety was its “first priority”.
In a Covid-19 update the Coalville headquartered business said it was taking various measures to safeguard its future including cancelling a dividend payment to shareholders, which would save it £100 million.
It also said it was:
· Suspending all land buying
· Ceasing all recruitment
· Postponing all non-essential spending
· Managing cash flows whilst ensuring it was still paying suppliers and sub-contractors on time
The business said: “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 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.”
The group, which includes Barratt Homes, David Wilson Homes, Barratt London and Wilson Bowden Developments, had started 2020 reporting good demand for its homes.
Total completions in the year to March 22 were up from 9,437 to 10,364.
It said: “Our total forward sales remain strong at 13,836 homes and at a value of £3,298.2 million (including joint ventures).
“However, as Covid-19 has gathered pace in the UK and since the introduction of increased social distancing guidelines, there has been a reduction in reservations and site visitors and an increase in cancellations.”
