12th May 2020 17:16
(Alliance News) - Food kiosk operator SSP Group PLC is in discussions with investors as it bids to cancel a GBP27 million dividend to save cash amid the Covid-19 pandemic, Sky News reported on Tuesday.
The broadcaster reported that SSP's situation is more unique than other companies that have decided against final payouts.
Sky News noted that this was because SSP declared a final dividend before raising GBP216 million through a share placing in March.
A source close to SSP told Sky News that securing investor approval for waiving the dividend would be a challenge because it is legally obliged to make the payout.
https://news.sky.com/story/coronavirus-upper-crust-owner-ssp-seeks-city-consent-to-cancel-dividend-11987188
SSP owns brands such as Upper Crust and Ritazza, which are found in railway stations and airports. Widespread travel bans across the globe due to Covid-19 have "severely" impacted passenger numbers, SSP said back in March.
SSP shares closed 1.9% lower at 230.40 pence each in London on Tuesday.
By Eric Cunha; [email protected]
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