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The Markets
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The Markets
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Retail

SSP Group proposes investors to trade dividend for shares as sales crash 95%

The operator of food venues in travel location saw a harsher impact than expected on trading

SSP Group plc (LON:SSPG) announced a placing for existing investors to reinvest last year’s final dividend in the company after sales crashed 95%.

The operator of food and drink outlets in airports and train stations is set to pay the 6p distribution on Thursday after shareholders voted and approved it in February.

READ: SSP Group gets backing for £216mln emergency cash call

In a separate update, SSP Group announced a retail offer of new shares to allow retail investors to reinvest their dividend as well.

The total value of the payout would be £26.8mln.

The firm is looking to retain cash as May sales were 95% below last year, since the impact from lockdown is harsher than anticipated.

The underlying (EBITDA) loss for the second half is expected to be between £120-190mln after cost-cutting measures and government support, with net operating cash outflow of £340-440mln.

In April, cash and undrawn available facilities totalled £750mln.

In the six months to 31 March, sales dropped 3% to £1.2bn while last year’s £54mln profit before tax swung to a loss of £10mln.

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