Business
Trading and financing update
Trading and financing update.
About this update from Hostelworld Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4703L\n Hostelworld Group PLC\n 13 January 2021\n \n \n \n \n LEI:213800OC94PF2D675H41\n \n \n \n \n \n Hostelworld Group plc\n \n \n (\"Hostelworld\" or the \"Group\" or \"we\")\n \n \n \n Trading and financing update\n \n \n \n \n \n \n 13 January 2021:\n \n Hostelworld, a leading global OTA focused on the hostel market, provides the following update on current trading and financing.\n \n \n \n \n \n Trading and financing update\n \n \n As anticipated in our trading update dated 15 October 2020, global travel demand remained muted throughout Q4 2020 with ongoing travel restrictions continuing to severely impact the global travel industry. The trading deterioration we had experienced since the end of August 2020 continued throughout Q4 2020, with minimal booking demand and ABV contraction primarily due to bed price deflation. Notwithstanding this, we have continued to release significant enhancements to strengthen our core platform to enhance our service offering and competitiveness when normal travel patterns resume.\n \n \n FY 2020 net bookings were in line with the guidance range of 20 - 22% of FY 2019 issued at the time of our October trading update.\n \n \n As at 31 December 2020, the Group's net cash position stood at €18.2 million (as at 30 June 2020: €29.4 million) with current liabilities of €20.7 million (as at 30 June 2020: €23.3 million), a reduction of €2.6 million versus June 2020 due to the partial repayment of a €3.5 million short-term financing facility. Cash liabilities due in H1 2021 are expected to be in the range of €6.5 - 7.0 million.\n \n \n Q4 2020 monthly operating cash outflow of €1.7 million remains in line with expectations. \n \n \n COVID-19 continues to cause significant disruption to the global travel market, resulting in prolonged travel restrictions and lockdowns across key geographies, impacting demand. While the positive news around vaccination programmes is welcomed, the timing of the recovery remains uncertain. As a result, while we continue to actively assess our cost base, the Board has considered our future funding requirements and is actively evaluating both debt and equity options, to secure the Group's long-term financial position. \n \n \n Throughout Q4 2020, Hostelworld has had positive engagement with a number of debt providers ...