Upper Crust owner SSP expects increase in revenue after recovery in air travel

Recovery in air travel has led SSP to expect revenues to rise. SSP operates brands ranging from its own Upper Crust, to franchises of M&S and Burger King, in airports and train stations in more than 30 countries.

In a statement to shareholders, the company said it expected revenue to hit around £3billion for the year to 30 September with underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be at £280million.

However, earnings per share will be towards the lower end of the 7-7.5p that had been previously forecast.

It also said the food business cited a ‘continued recovery in passenger numbers’ for why revenues have strengthened in recent months. 

The business said it expects that revenue for mid-June to the end of September will be 16 per cent higher than the same period last year when offsetting for currency changes.

This is better than in the 10 weeks to June 11, when revenue was up 12 per cent year-on-year.

But when taking into account currency fluctuations the business said revenue was only up 10 per cent in both periods.

SSP Group shares were down by 6 per cent to 230p in afternoon trading on Thursday.  

The firm said: ‘Our revenue performance is being driven by the continued recovery in passenger numbers, particularly in the air sector, as well as our stronger customer offer and digital proposition.

‘In addition, revenues have benefited from price increases and further net contract gains.’

The company said it had struggled in part due to the strengthening of the pound against other currencies it earns.

Patrick Coveney, chief executive of SSP, said: ‘We are enjoying a good finish to the year, and there is real momentum across the business as we enter the 2024 financial year.

‘Our focus on higher growth markets such as North America and Asia Pacific, as well as our ongoing efforts to enhance our capabilities and increase efficiencies, is delivering strong results.

‘Looking ahead, we continue to see significant opportunities for SSP to drive growth and returns.’

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