March 25, 2020 / 8:19 AM / in 14 days

BRIEF-SSP Group Warns Of Coronavirus Hit, Cuts Jobs, Management Pay

March 25 (Reuters) - SSP Group PLC:

* SSP GROUP PLC - COVID-19 TRADING UPDATE

* SSP GROUP PLC - DUE TO COVID-19, OUR EXPECTATION IS THAT FOR MONTH OF MARCH 2020, REVENUE ACROSS GROUP WILL BE APPROXIMATELY 40% TO 45% LOWER YOY

* SSP - COVID-19 EXPECTED TO CUT MARCH REVENUE BY ABOUT £125M - £135M, WITH A CORRESPONDING REDUCTION IN OPERATING PROFIT OF APPROXIMATELY £50M - £60M

* SSP - FOR SIX MONTHS ENDING 31 MARCH 2020, EXPECTS TO SEE A DECREASE IN TOTAL GROUP REVENUE OF APPROXIMATELY -3%

* SSP GROUP PLC - EXPECTS TO HAVE APPROXIMATELY £180M - £200M OF CASH AND UNDRAWN COMMITTED FACILITIES AT END OF H1 2020

* SSP GROUP PLC - HEADCOUNT REDUCTION AND TEMPORARY LAY-OFFS COMMENCED

* SSP GROUP PLC - SIGNIFICANT SALARY REDUCTIONS ACROSS ALL SENIOR MANAGEMENT, GROUP EXECUTIVE AND GROUP BOARD

* SSP GROUP PLC - MAJORITY OF RENT IS BEING PAID ON A FULLY VARIABLE BASIS, AS A PERCENTAGE OF REVENUE

* SSP GROUP PLC - ONGOING DISCUSSIONS WITH LANDLORDS FOR FURTHER RENT RELIEF

* SSP GROUP PLC - CAPITAL EXPENDITURE TO BE REDUCED TO APPROXIMATELY £10M IN H2 2020

* SSP GROUP PLC - SUSPENDED ITS PREVIOUSLY ANNOUNCED SHARE BUYBACK OF UP TO £100M, HAVING ONLY PURCHASED APPROXIMATELY £2M OF SHARES TO DATE

* SSP GROUP PLC - DEFER PAYMENT DATE OF FINAL DIVIDEND OF 6.0 PENCE PER ORDINARY SHARE TO 4 JUNE 2020

* SSP GROUP PLC - SSP’S BOARD DOES NOT INTEND TO PAY AN INTERIM DIVIDEND FOR H1 2020

* SSP - FOR H2, CENTRAL PLANNING ASSUMPTION IS THAT RECENT TRADING CONDITIONS SEEN THROUGH MARCH 2020 WILL LIKELY DETERIORATE FURTHER

* SSP - ASSUME BENEFIT OF MANAGEMENT ACTION TO CUT COST BASE WOULD RESULT IN A “DROP THROUGH” TO OPERATING PROFIT FROM REDUCED SALES OF 25% TO 30%

* SSP - AGREED NEW UP TO £112.5M 18-MONTH COMMITTED BANK FACILITY WITH WHICH REPRESENTS INCREMENTAL FINANCING TO ITS EXISTING DEBT FACILITIES

* SSP GROUP PLC - CONFIDENT IN ITS ABILITY TO MEET ITS COVENANT THRESHOLDS AS AT 31 MARCH 2020

* SSP - INTEND TO CONDUCT NON-PRE-EMPTIVE PLACING OF NEW SHARES OF 1 (17/200) PENCE EACH IN REPRESENTING UP TO 19.99% OF CO’S EXISTING SHARES

* SSP - DIRECTORS, MEMBERS OF SENIOR MANAGEMENT TEAM TO PARTICIPATE ALONGSIDE EQUITY PLACING AND INTEND TO CONTRIBUTE £760,000

* SSP - LFL REVENUE (BASED ON LATEST WEEK) ACROSS UK AND CONTINENTAL EUROPE ARE CURRENTLY RUNNING APPROXIMATELY 80% TO 85% LOWER YOY Source text for Eikon: Further company coverage:

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