SSP revenues surge 212.9% as travel rebounds

The SSP Group has reported its revenues surged 212.9% year-on-year to £803.2m for the six month period ended 31 March 2022 (H2), recovering “strongly” with 64% growth compared to pre-Covid levels as the travel sector rebounds. SSP operates brands such as Upper Crust and Ritazza, as well as franchises for Burger King, Jamie’s Deli, Starbucks and Yo Sushi. Overall, operating profit increased to £26m on a reported basis under IFRS 16, up from a loss of £219.9m in 2021. Additionally, the underlying operating loss was £36.4m, compared to a loss of £160.7m last year. SSP also recorded underlying EBITDA of £14.7m, compared to a loss of £110.3m in 2021. H2 saw sales at 83% of 2019 levels in the first six weeks of the period, led by Continental Europe and North America where revenues are back to above 80%, driven by a recovery in domestic and leisure demand. In the UK, sales are back to c.82% of pre Covid-19 levels, with the air sector boosted by leisure demand, and the rail business helped by the return of commuters to the workplace. Meanwhile, the picture “remains more mixed” for the rest of the world, with recovery in the Middle East, India, Australia and Thailand being offset by limited travel activity in China and Hong Kong. SSP said that the business saw high levels of contract retention, ahead of historical levels, underpinned by client relationships, brand portfolio and operational performance. Looking ahead, SSP expects sales in the second half of the year to be around 80-85% of pre-Covid levels and for full year sales to be in the region of £2bn-£2.1bn. Despite uncertainty in the outlook from Covid-19 and the current geopolitical and macroeconomic situation, SSP said it is well positioned for a strong summer period in its key markets. Patrick Coveney, CEO of SSP Group, said: “The business is recovering well from a hugely challenging period. We have seen a significant rebound in trade since the impact of Omicron, with revenues currently running at over 80% of pre-Covid-19 levels and with a similar proportion of our sites now open. “We anticipate a full recovery in leisure travel, which drives the majority of our business, and are confident that we are well positioned for the months and years ahead.”