The share price of SSP surged by 15% as the Upper Crust owner revealed that its sales were expected to be down by 86% for the half year.
Confusing? Of course, but here’s why.
Investors appeared to take a bit of faith in that the company has moved to reduce its cost base and is now claiming that a ‘materially lower cash usage’ is expected with its interims expected expect to reveal this.
This will mean that its operating loss should be broadly in the middle of its forecast range, rather than at the bottom.
Commenting as part of the pre closing trading update was CEO Simon Smith who noted:
“We have taken rapid and decisive action to reduce cost, preserve cash and to substantially strengthen the Group’s financial position. It is with regret that the prolonged nature of this crisis has resulted in us having to restructure and make considerable job losses in order to protect the business. These are always extremely difficult decisions, and we are supporting our colleagues throughout this process.“
The share price of SSP is currently trading at 206p.