1st Apr 2020 16:24
(Alliance News) - SSP Group PLC on Wednesday said it has drawn down funds under the Bank of England's Covid-19 financing facility, but did not disclose the amount it had drawn down.
The Covid Corporate Financing Facility is designed to help larger firms maintain liquidity amid disruption caused by the Covid-19 outbreak, through the purchase of short-term debt in the form of commercial paper.
FTSE 250-listed SSP - which owns brands such as Upper Crust and Ritazza, which are found in railway stations and airports - said the funds received as well as proceeds realised from its GBP216 million placing, will be used to strengthen its balance sheet during the period of disruption to the global travel market.
In March, the company said widespread travel bans across the globe due to Covid-19 have "severely" hurt passenger numbers. It added that revenue in March is set to be 40% to 45% lower year-on-year, and in the second half ending September it could decline as much as 85% year-on-year.
"Against the backdrop of the significant reduction in global travel, SSP has taken decisive action to dramatically reduce our cost base and downsize our operations in line with demand. The financing package that we have secured puts SSP in a really strong position to manage through this crisis and to be in the best shape possible to return to growth as soon as the travel market starts to recover," said Chief Executive Simon Smith.
The stock was trading 6.8% lower at 286.76 pence each on Wednesday afternoon in London.
By Ife Taiwo; [email protected]
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