Upper Crust owner SSP asks shareholders to reinvest dividend to raise £27m
Upper Crust owner SSP Group has asked shareholders to reinvest their dividend payment to raise £26.8m for the firm, which swung to a loss during the coronavirus crisis.
SSP, which operates mainly out of travel hubs that were closed during the pandemic, said shareholders can reinvest the proceeds of their 2019 final dividend payment into new shares.
SSP said it had also weighed up cancelling, deferring or requesting dividend payment waivers in order to retain cash within the business.
“Proceeds from the offering will allow for a proportion of the 2019 final dividend payment to be effectively retained in the business and further enhance the company’s cash and liquidity position during this period of unprecedented disruption in the global travel market as a result of the Covid-19 outbreak,” SSP said.
SSP reported a loss before tax of £34.3m in the first half of the year, with revenue down 2.7 per cent at £1.21bn.
Like for like sales plunged 8.4 per cent due to the closure of most travel markets during March.
SSP chief executive Simon Smith 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, whilst 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.”