SSP Group expects up to 45% drop in revenue in March

Travel bans due to COVID-19 have affected performance.

SSP Group said revenues for March are expected to drop by 40-45%, hitting operating profit by £50 to 60 million, as the COVID-19 pandemic hits travel activity.

In an update to investors, UK, Continental Europe and North America are currently seeing like-for-like (LFL) sales down 80%, whilst the rest of the world are down 60%.

In the first half of the financial year ending 31 March, the restaurant and cafe owner expects LFL revenue to drop 8% and will not propose an interim dividend.

The period is estimated to end with £180 to 200 million cash and undrawn committed facilities.

The hospitality group said it has closed shops, reduced staff and reduced salaries and is negotiating rents to save money.