SSP Group, the travel food and beverage outlets operator, saw its pre-tax loss on a reported basis under IFRS 16 spike to £299.7m for the six months ended 31 March 2021.
The 774% increase in losses can be attributed to a 78.8% year-on-year decline in group revenues, falling from £1.21bn in the first half of 2020 to £256.7m in the first half of this year.
The operator for brands such as Upper Crust, Starbucks, Burger King, and YO! Sushi also saw like-for-like sales decrease 79% when compared to pre-pandemic levels due to “material reductions in passenger numbers” across all travel markets.
Net debt at the group also widened during the period to £2.03bn, mainly composed of £1.19bn in lease liabilities.
Simon Smith, CEO at the company, said that “despite the challenging trading conditions” the group has been able to “deliver strong operational and cash control”.
He added: “The recovery in domestic and leisure travel has now begun in a number of our territories, and our teams are busy reopening units in line with passenger demand.
“We have a strong balance sheet and can see many opportunities to accelerate growth as the market recovers and to deliver sustainable growth for the benefit of all our stakeholders.”
Looking ahead, SSP expects to see profit conversion on its lower sales of roughly 25% during H2 FY21 when compared to pre-pandemic levels.