Business
Trading statement & update on COVID-19 impact
Trading statement & update on COVID-19 impact.
About this update from Hostelworld Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 6336H\n Hostelworld Group PLC\n 26 March 2020\n \n \n \n \n \n \n \n \n \n \n \n \n \n Hostelworld Group plc\n \n \n (\"Hostelworld\" or the \"Group\")\n \n \n \n \n \n Trading statement and update on COVID-19 impact\n \n \n \n \n \n \n \n \n \n \n \n \n 26 March 2020\n \n : Hostelworld, a leading global OTA focused on the hostel market, today provides the following update on trading in light of the unprecedented challenges presented by the COVID-19 outbreak. \n \n \n \n \n \n \n \n \n Trading Update\n \n \n On 4 March 2020 at the time of the Group's preliminary results, Hostelworld estimated that the impact of COVID-19 would be a reduction in Q1 2020 EBITDA in the range of €3 to €4 million. Since early March booking trends have continued to deteriorate as the outbreak expanded, and while the Group took immediate steps to mitigate the financial impact, we now expect the overall EBITDA reduction in Q1 2020 to be c. €5.0 million.\n \n \n \n \n \n \n \n \n COVID-19 Risk Management\n \n \n The well-being and safety of our employees, customers and hostel partners remains our top priority. During the first half of March 2020 a series of actions were taken to protect the health and safety of our employees, including restricting travel and meetings and the adoption of flexible working arrangements for colleagues. Detailed contingency plans were also drawn up to ensure business continuity in the light of evolving government guidelines. On the 13 March 2020, we took the further step of implementing a full working from home policy for all our employees in Europe.\n \n \n \n \n \n \n \n \n Cash conservation measures\n \n \n Liquidity\n \n \n As at 24 March 2020, the Group's net cash position remains strong, with in excess of €20 million of immediately available cash on hand (as at 31 December 2019: €19.4 million). The Group confirms it has no debt obligations. As at 24 March 2020, Deferred Revenue, reflecting customer deposits made under the free cancellation booking product, amounted to €2.5 million. While the rate of cancellation under this booking option has increased due to changes in travel patterns in response to COVID-19 outbreak, we are working to minimise any negative cashflow impacts to the business, by offering credits ...