22.75% HOUSEBUILDER Crest Nicholson yesterday cancelled payment of its final dividend and withdrawn its full-year financial guidance due to the coronavirus pandemic.

The company also said it would draw down all of a £250m credit facility to help cope with the hit to its business from Covid-19 related shutdowns.

Crest Nicholson said it would have £185m cash and a strong balance sheet after the drawdown.

"We consider these measures to be in the best interests of all our stakeholders and will best ensure the long-term viability of the business at this time," the housebuilder said.

Since the start of the year, Crest Nicholson has traded in line with expectations, it said, with increases in website traffic, footfall and reservations.

But the company expects the rapidly worsening coronavirus outbreak to "have a significant impact on visitor levels, production capability and trading performance over an unclear timeline".

"When faced with this unprecedented and unpredictable situation, [we] consider it to be prudent to protect the company's cash position", the firm said. Shares fell 22.8 per cent to 182.3p.

(c) 2020 City A.M., source Newspaper