SSP is facilitating a dividend reinvestment equity offering of up to £26.8m alongside its half-year results today, inviting shareholders to reinvest their 2019 final dividend payment into new SSP shares to retain cash in the business.
In the travel caterer's results for six months period ended 31 March 2020, the group said it had negotiated more flexible rent terms and considerably strengthened its balance sheet and liquidity through its March equity placing.
However, it said that despite performing well prior to the onset of Covid-19, the outbreak has had a "significant impact" on SSP's financial results. It reported revenue of £1.21b, down 2.7% at constant currency; like-for-like sales down 8.4%; and pre-tax losses of £34.3m on a reported basis.
Simon Smith, chief executive of SSP Group, said: "Covid-19 has had an unprecedented impact on the travel sector. Our response has been to take quick and decisive action to protect our people and our business, while around the world our colleagues have helped and supported their local communities. Although challenging, it was a great illustration of SSP at its best and demonstrated the resilience of our teams. I'm immensely proud of what's been achieved.
"Looking forward, and with sufficient liquidity to manage a pessimistic trading scenario, I believe the actions we have been taking during this crisis will make us a fitter and stronger business, well placed to deliver for all our stakeholders as the travel market recovers."