Our response to Covid-19
COVID-19 has heightened the need for businesses to be agile and we have risen to the challenge, adapting how we work and our operational focus.
Until the middle of March 2020, we were on track to deliver results which were in-line with expectations.With market confidence impacted by COVID-19, following the imposition of lockdown restrictions, we saw almost overnight the temporary loss of two significant property transactions and three transactions aborted.
We acted swiftly and decisively, implementing activities with the objectives of conserving cash, raising new equity and further reducing borrowings.
Throughout the pandemic, in line with the Group's commitment to health and safety, the health and wellbeing of our people and the public has been of utmost importance.
Immediate actions taken
The Government’s furlough scheme enabled the Group to alleviate some of the immediate economic impact of COVID-19, whilst ensuring we had the workforce needed once the situation improved. In total, 73 members of 166 staff (as at the end of March 2020) were furloughed under the Coronavirus Job Retention Scheme.
In addition:
- The Executive Directors and the Operational Board accepted a temporary salary cut of 50% per annum. The Executive Directors also deferred taking their annual bonus for the fifteen-month period ended 30 September 2019;
- The Non-executive Directors accepted a voluntary reduction in their fees of 25% per annum;
- All staff working remotely earning £40,000 or more per annum accepted a voluntary salary reduction ranging from 9% to 45% per annum; and
- During the year, 25 staff were made redundant.
Employees (excluding Non-executive Directors and Executive Directors) returned to full pay from 1 July 2020. The Non-executive Directors and Executive Directors returned to full pay from 1 September 2020.
The review of Group overheads ensures that we are operationally efficient, with the right skills in place to take the business forward.
Funding
An equity fundraise and facility extensions improved our liquidity. The Capital Raising in April delivered proceeds of approximately £9.4m (net of expenses) and increased the total ordinary shares in issue to 228,341,045. In September 2020, we triggered the accordion part of the revolving credit facility (RCF) with HSBC of £20.0m, taking the facility available for housebuilding from £45.0m to a new maximum of £65.0m. As at the year end, we had drawn down £42.8m of this facility leaving headroom of £22.2m. The facility expires in March 2023. Detail on other facility extensions can be found in the Group Finance Director's Review
Becoming COVID-19 Secure
We implemented stringent new procedures regarding hygiene, social distancing, travel and self-isolation to ensure full compliance with the Government's 'COVID-19 Secure' guidance and the commitments outlined in the Home Builders Federation's 'Charter for Safe Working Practice', to which we are a signatory. We continue to work under the current Site Operating Procedures issued by the Construction Leadership Council.
In line with the prevailing safety advice, we continued construction activity across the majority of sites. The three sites temporarily closed were reopened in August 2020. Thinking outside the box to work safely resulted in some surprising innovations, including the use of marquees to provide somewhere safe and comfortable to relax during break times – all while maintaining a safe 2m distance.
We acted swiftly and decisively, implementing activities with the objectives of conserving cash, raising new equity and further reducing borrowings.
Throughout the pandemic, in line with the Group's commitment to health and safety, the health and wellbeing of our people and the public has been of utmost importance.
Supporting office-based staff with home working
Office based staff were supported to work from home, with staff encouraged to take home IT equipment and office furniture from the outset and additional equipment provided as needed. Display Screen Equipment training was provided to ensure a safe home-working environment. We embraced the use of virtual meeting facilities and encouraged regular team meetings to support people in feeling connected. We implemented measures to improve communication with staff during these uncertain times and the transition from officebased staff to home working was achieved with minimum disruption to the business. This is a real testament to the quality, commitment and professionalism of our staff at all levels.
Health and wellbeing
We have ensured our staff know where they can access help should they need it during these uncertain times. All staff have access to our free Employee Assistance Programme and we have also provided details of other support services available. Staff within the business have been trained as mental health first aiders, providing another support channel
Ensuring sales and marketing suites are COVID-19 secure
In line with updated Government guidance that removed the restriction on non-essential home moves and supported the return of activities related to the sale and purchase of homes, sales and marketing suites opened in May 2020. The reopening of the sales and marketing suites enhances our online and remote sales and marketing activity. To ensure the appropriate social distancing, visits are by appointment only and limited to two people from the same household.
Additional procedures are in place to give visitors even greater confidence:
Parking is provided where possible to reduce the need for customers to use public transport;
- Visitors are briefed ahead of their site visit to ensure they know of the COVID-19 secure measures in place;
- Reservations of homes are made electronically and not at the appointment;
- Protective screens have been installed in our marketing suites to help prevent the spread of infection;
- Internal doors are left open to minimise the need for contact;
- All surfaces in the marketing suite, show homes and properties are sanitised between each appointment;
- Social distancing is observed throughout every viewing, keeping 2m apart at all times;
- Visitors are required to sanitise their hands when entering and leaving the marketing suite, show homes and at the property viewings;
- Visitors may be asked to be temperature checked;
- Face masks are provided and must be worn; and
- Protective gloves are made available to all customers.
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