SSP Group reports £426 million of annual pre-tax loss due to COVID-19 disruptions

SSP Group plc (LON: SSPG) said on Thursday that it concluded fiscal 2020 with a pre-tax loss due to the ongoing Coronavirus pandemic that has so far infected more than 19 million people in the United Kingdom and caused over 66 thousand deaths.

SSP Group closed the regular session less than 1% down on Thursday. At 317.20 pence per share, the stock is now more than 50% down year to date in the stock market but has recovered sharply from an even lower 151 pence per share in March. The price action should come in handy if you are interested in investing in the stock market.

SSP Group’s revenue slides to £1.43 billion in fiscal 2020

The company also said on Thursday that it expects its first-quarter sales to remain broadly unchanged on a quarter over quarter basis. In a report published in September, SSP Group had forecast an 86% decline in sales in the fiscal second half.

For the financial year that ended in 30^th September, the British multinational reported £425.8 million of pre-tax loss. In comparison, SSP Group had recorded a significantly higher £197.2 million of profit in the previous year.

The catering company said that its revenue in fiscal 2020 printed at £1.43 billion versus the year-ago figure of £2.79 billion. Amidst the ongoing COVID-19 crisis, SSP added, its comparable sales posted a 51% year over year decline as the global travel and tourism industry came to a near halt this year.

In separate news from the United Kingdom, Watches of Switzerland Group swung to an interim profit and raised its guidance for the full year on Thursday.

SSP Group says sales were about 80% down in Q4

SSP Group operates 2,800 branded catering and retail units at around 300 railway stations and more than 180 airports across 35 countries. In the fiscal fourth quarter, the London-based company said, its sales were roughly 80% down on an annualised basis.

According to SSP Group plc:

“We firmly believe that demand for travel will return and the actions we have taken since March, together with the evolving market backdrop, will ensure SSP is well-positioned to capitalise on future market opportunities.”

SSP Group performed slightly downbeat in the stock market last year with an annual decline of roughly 4%. At the time of writing, the British multinational catering company is valued at £1.71 billion and has a price to earnings ratio of 24.37.