Housebuilder secures cash under the Treasury facility for firms hit by covid
Housebuilder Crest Nicholson has signed up for a £300m loan from the government’s Covid Corporate Finance Facility scheme, it revealed late yesterday.
The firm said it had eligibility for borrowing under the scheme approved and had immediately put in a place a £300m facility to provide “additional liquidity should it be required”. Rival Redrow has also set up a £300m facility under the scheme.
The firm, which in March drew down all of its existing £250m banking facilities, said it had not yet drawn down the government funding.
In May the business said it had £255m of cash in the bank, although this was outweighed by liabilities, giving it an overall net debt of £94m.
Crest’s decision to borrow money under the government scheme comes in the wake of rival Taylor Wimpey, which yesterday raised £515m from its own shareholders to fund a land-buying spree during the current economic crisis, and said it will pay back furlough cash to government.
In contrast Crest in May said it was still seeking to defer land spend where possible in order to preserve cash.
The firm is due to release half year results for the six months to April 30 next week.
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