The S&P/ASX 200 (INDEXASX: XJO) fell nearly 11% in FY20, in its poorest fiscal year performance since 2012. The bulk of the losses occurred between late February and mid-March as a result of the COVID-19 pandemic. But some ASX 200 shares have fallen much more than the broader market. On that note, let's take a look at the ASX 200 shares that delivered the worst performances of FY20.
The worst performing ASX 200 shares of FY20
Southern Cross Media Group Ltd (ASX: SXL)
The Southern Cross Media Group share price fell 86% over the last financial year. The radio station owner struggled as advertising revenues all but dried up in the face of the pandemic. The company sought to realign its capital structure, therefore, shares were suspended from trading in late March. A $169 million capital raising was launched with the proceeds used to pay down net debt. Operating expenses were minimised with cost savings of $40 to $45 million to be realised over the 2020 calendar year. The interim dividend was also cancelled. In more positive news, the media company recently announced it was eligible for $10 million of funding under the Federal Government's Public Interest News Gathering Program.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price plunged 73% over FY20. The company was an early casualty of the COVID-19 crisis, conducting a $700 million equity raising in April. At the onset of the pandemic, Flight Centre also moved to reduce costs and preserve cash. About 6,000 support and sales roles were either stood down or made redundant and 35% of shops globally were closed. In May, the company sold its St Kilda road property for $62.15 million.
oOh!Media Ltd (ASX: OML)
Another victim of lockdowns, the oOh!Media share price shed 72% of its value over the last financial year. Demand for the company's outdoor advertising assets plummeted as coronavirus caused people to spend more time at home. A $167 million equity raising was launched in late March with the proceeds applied to pay down debt. Material cost control measures were also implemented with savings of $20 to $30 million identified. Nonetheless, the company believes the outdoor advertising market will continue to grow as conditions normalise.
G8 Education Ltd (ASX: GEM)
The G8 Education share price fell 70% over 2020. The childcare centre operator flagged the impact of coronavirus on attendance at its centres in February. By late March, attendances across the sector were around half the level of the prior year, putting the sector at risk of collapse. The Federal Government announced a relief package for the sector in April, under which families received child care for free. Subsequent to this, G8 Education conducted a $301 million capital raising to provide the company with additional liquidity and financial flexibility.
Webjet Limited (ASX: WEB)
The Webjet share price tumbled 66% in FY20 as the travel industry ground to a halt. The company conducted a $275 million equity raising in April to strengthen its balance sheet in the face of restrictions severely impacting travel globally. Webjet deferred its interim dividend and will review its decision in October. The company announced redundancies and most remaining staff moved to a 4-day week. While the travel industry will be impacted by coronavirus for some time, Webjet believes it will emerge in a strong competitive position, partially thanks to its improved capital position following its equity raise.
Unibail-Rodamco-Westfield (ASX: URW)
The Unibail share price dropped 62% last financial year. The shopping centre operator has suffered greatly during the pandemic, particularly due to lockdowns in Europe impacting its properties in the region. Restrictions have meant conventions and exhibitions are on hold and foot traffic at shopping centres is significantly down. The fall in its share price meant Unibail was removed from the S&P/ASX 100 (INDEXASX: XTO) in the latest rebalancing. Earlier this month, Unibail reported that 65 of its 90 shopping centres have reopened. Centres have seen footfall returning progressively following re-opening.
Whitehaven Coal Ltd (ASX: WHC)
The Whitehaven Coal share price was down 61% over FY20 on the back of declining coal sales throughout the pandemic. Sales fell 22% in the March quarter when compared to the prior corresponding period. Saleable coal production also declined by 15% to 4.1 million tonnes. The company, nonetheless, reports that although it sees economic activity rapidly contracting, demand for coal from customers in its region remains solid.
Corporate Travel Management Ltd (ASX: CTD)
The Corporate Travel Management share price plunged 57% in FY20 as travel came to a standstill. The travel agent is one of the few that has not yet raised capital to shore up liquidity. Corporate Travel Management has benefitted from its business model under which a high proportion of costs are variable. The business has a relatively small physical footprint, therefore saving on rent but meaning roughly 70% of costs are people-related. This business model allowed for a swift resizing of the business as the coronavirus crisis took hold. When the crisis hit, Corporate Travel Management implemented an extensive cost reduction program. The company saw its cost base reduced from $27 million a month to $10–$12 million a month. The company eliminated non-essential expenditure and reduced CAPEX. Corporate Travel Management also implemented temporary stand-downs and retrenchments but has been a beneficiary of government initiatives such as JobKeeper.
Oil Search Limited (ASX: OSH)
The Oil Search share price fell 54.5% last financial year. The company saw revenue decline by 20% in the last quarter as sales fell by 13%. The onset of the pandemic saw a decline in demand for oil accompanied by a steep drop in oil prices. In response to the sudden fall in the oil price in March, Oil Search took action to strengthen its balance sheet and increase liquidity. In April, the company launched a $700 million equity raising and investment expenditure has also been slashed by approximately 40%. Oil Search believes it is now in a robust position to withstand a sustained period of low oil prices.
Virgin Money UK PLC (ASX: VUK)
The Virgin Money share price dived 53% in FY20. The ASX 200 company saw a resilient first-half performance although the pandemic produced headwinds in the second half. Virgin has reported that it has a defensive loan portfolio with 82% mortgages, 11% business lending, and 7% personal lending, mainly in prime and high-quality credit cards. Nonetheless, Virgin Money booked a COVID impairment provision of £164 million at the end of 1H FY20.
