The coronavirus crisis weighed heavily on the S&P/ASX 200 Index (ASX: XJO) in FY 2020 and led to it having its worst 12 months since 2012. The benchmark index recorded a 10.9% decline over the year.
While a good number of shares dropped lower with the index, some fell more than most. Here’s why these were the worst performers on the ASX 200 during the last financial year:
Southern Cross Media Group Ltd (ASX: SXL)
The Southern Cross Media share price was the worst performer on the ASX 200 during the financial year with a massive 80.7% decline. Investors were selling the media company’s shares amid concerns that the coronavirus crisis could impact advertising revenues materially. Also weighing heavily on its shares was a highly dilutive capital raising at the height of the pandemic.
oOh!Media Ltd (ASX: OML)
The oOh!Media share price wasn’t far behind with a disappointing decline of 71.7%. This was also driven by extremely weak advertising markets, which look likely to lead to it falling well short of its (withdrawn) guidance this year. And with many advertisers pushing back their campaigns until after the crisis passes, this weakness could continue for a little while to come. A $167 million fully underwritten equity raising (at a 37% discount to its last close price at the time) also weighed on its share price performance.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price was a very poor performer and fell 70.1% during the last financial year. The pandemic was of course to blame for this one. Investors were heading to the exits in their droves after borders were closed and travel bookings collapsed. In addition to this, Flight Centre was forced to undertake a material capital raising to give it sufficient liquidity to survive the crisis.
G8 Education Ltd (ASX: GEM)
The G8 Education share price was out of form and recorded a disappointing 67.7% decline during the 12 months. The childcare centre operator has experienced a sharp reduction in its occupancy level because of the pandemic. And while the government did offer support to the industry, it wasn’t enough to stop the company from launch a highly dilutive $301 million equity raising. Unsurprisingly, G8 has also suspended its dividends for the foreseeable future.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and oOh!Media Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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