10th Mar 2020 10:58
(Alliance News) - Safestay PLC on Tuesday warned that the spread of the coronavirus is hurting its bookings across the hostel network.
The hostels operator said it has experienced a "material" reduction in new bookings over the last week against its expectations while a number of group bookings from schools and colleges have been cancelled or postponed.
"It is too early to say what the full impact from covid-19 might be in the current financial year, as it is not known how long the virus will continue to impact travel and spending patterns in Europe and the UK," Safestay noted in its statement Tuesday.
"The board is confident that the business is well placed to weather the current challenges and return to growth as and when the travel market normalises."
In the meantime, the AIM-listed company said it is reducing flexible costs where possible to offset the dip in bookings.
Safestay shares were trading 6.3% lower in London on Tuesday at 18.75 pence each.
By Evelina Grecenko; [email protected]
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