BUSINESS CLOSE: BP slashes dividend; Easyjet raises flight capacity; Diageo profits slide 

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BUSINESS CLOSE: Virgin Atlantic ‘could run out of cash by September’; Pizza Express to close 67 restaurants; BP cuts dividend in half

By This Is Money

Published: | Updated:

The Footsie closed flat after a day of mixed results from some heavyweight companies. The FTSE 100 closed just 3 points higher at 6,036, while the FTSE 250 ended the day 149 points higher at 17,307.

BP shares rose after it slashed its dividend payout to 4p per share. This is the first time it has cut the payment since the Deepwater Horizon disaster in 2010.

But Diageo shares tumbled after the world’s largest spirits maker reported a bigger-than-expected decline in sales on as demand for its whiskeys, vodka and gin fell in all markets except North America.

Elsewhere, Virgin Atlantic could run out of money by the end of September if creditors do not approve a £1.2 billion bailout package, a court has heard today.

Without a restructuring and new cash, it is projected that the airline’s cash flow would drop to ‘critical levels’ by the middle of next month and it will ‘run out of money altogether’ by the week beginning 28 September.

A series of companies announced job cuts today as the coronavirus pandemic takes its toll. 

Pizza Express said it would close down d 67 of its UK restaurants, with up to 1,100 jobs at risk, while Dixons Carphone said it would cut 800 jobs and Booking.com said it would send home a quarter of its 17,000 staff.

On the positive side, easyjet has said it is operating more flights than previously planned due to demand exceeding expectations. 

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