SSP Group Q3 revenue hits 87% of pre-pandemic levels
In the UK, sales reportedly averaged 82% for the quarter, driven by a further strengthening of sales in Air, whereas trading in Rail was impacted by the recent industrial action
SSP Group plc has seen its revenue continue to strengthen in Q3, with revenue at 89% of 2019 levels in the seven weeks since the group’s interim results on 24 May, and at 87% of 2019 levels in Q3 overall.
According to the company’s recent performance and the current strength of travel recovery, it is expecting to deliver sales in the region of £2.1bn for the current year and an EBITDA margin of around 6%, which is considered to be “at the upper end” of its previous full year guidance range.
For the nine-month period from 1 October 2021 to 30 June 2022, total group revenues are shown to have averaged 72% of 2019 levels.
Geographically, the company has seen a strong recovery across all divisions, led by Continental Europe, where sales in the third quarter averaged 93% (of 2019 levels). In the UK, sales reportedly averaged 82% for the quarter, driven by a further strengthening of sales in Air, whereas trading in Rail was impacted by the recent industrial action.
The group said it was “encouraged” by good recovery in the rest of the world, as sales averaged 75% with particularly strong performances in India, Australia and Thailand.
The group said: “Whilst there remains considerable uncertainty in the macroeconomic and geopolitical backdrop, we are well positioned to benefit from the continued recovery of the travel sector, notwithstanding the current challenges of airport disruption, labour shortages and industrial action across certain air and rail markets.”
The company has previously reported on their intentions to implement a new pipeline of contracts by 2025, which is expected to add approximately £500m to revenues compared to 2019. The mobilisation of this pipeline is expected to accelerate as the business “continues” to recover.
