SSP cuts jobs, cancels divi, seeks cash from banks, govt
SSP Group
334.20p
16:20 22/01/21
Airport food concession operator SSP cancelled its interim dividend, cut jobs and said it was in advanced talks with the UK government on a financial support package as European revenues slumped by 80% due to the coronavirus.
Food & Drug Retailers
4,693.79
16:29 22/01/21
FTSE 250
20,596.91
16:29 22/01/21
FTSE 350
3,811.25
16:29 22/01/21
FTSE All-Share
3,786.06
16:29 22/01/21
The company, which has seen its business hammered as governments imposed travel bans to combat the pandemic said it had agreed a new £112m, 18 month credit facility with HSBC, Lloyds and Natwest banks, subject to a new issue of shares worth 20% of its share capital.
SSP, which issued a profits warning last month said said revenue during march would be 40% - 45% lower year on year with a corresponding reduction in operating profit of around £50m - £60m. It deferred payment of the 6p a share final dividend and added that it was renegotiating rents to save cash.
Including the impact of Covid-19 on current trading, SSP expected a fall in interim group revenue of 3% on a constant currency basis, made up of a like-for-like sales decline of approximately 8% and net gains of approximately 5%.
“SSP has considered a very pessimistic scenario assuming an almost total shutdown of the travel market for the whole of the second half of the financial year, with group revenue being down approximately 80% to 85% in H2 2020 against the same period last year,” the company said.
It added that it had closed down several of its airport operations an started laying off staff, while implement a “significant” pay cut for all senior management, executives and board members.