StockMarketWire.com - Convenience store operator in travel locations SSP said it would issue new shares to bolster its capital position while it weathers a demand slump caused by Covid-19.

The company also said it wouldn't pay an interim dividend for the first half of the financial year.

Headcount reduction and temporary lay-offs had commenced, it said, adding that senior manager salaries had been cut significantly.

The pricing of the placing shares would be determined through a book build process.

SSP said details of the placing price and the number of placing shares would be announced after the close of the bookbuilding process.

The total number of shares issued would not exceed 19.99% of the company's existing ordinary share capital.

In a trading update, the company said like-for-like revenues -- based on the latest week -- across the UK and continental Europe were currently running around 80%-to-85% lower on-year.

In North America, they were about 80% and in the 'rest of the world', which includes Asia Pacific, Eastern Europe, the Middle East, India and Brazil, they were about 60% lower.

Group revenue for the month of March was seen falling 40-45%, reducing revenue by about £125m-to-£135m, with a corresponding reduction in operating profit of about £50m-to-£60m.

SSP said it would defer the payment date of last year's final dividend of 6.0p per share 4 June.

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