The company said it expects the Paris Olympics and Euro 2024 football championships to boost travel across Europe in the summer
Upper Crust owner SSP Group is gearing up for a “summer of strong demand”, anticipating that the Paris Olympics and Euro 2024 football championships will stimulate travel across Europe.
SSP, which operates food outlets at transport hubs such as airports and railway stations, reported a near one-fifth increase in revenues, up 19% on a constant currency basis to £1.52billion in the six months leading up to March 31. The company revealed a 14% rise in revenues in the first six weeks of the second half, including a 9% increase in the UK.
However, shares fell by 7% in Tuesday morning trading as underlying earnings were lower than anticipated, despite a 24% constant currency rise to £106million. Statutory pre-tax profits also dipped by 19% to £13million due to finance costs.
Patrick Coveney, chief executive of SSP Group, said: “Trading momentum has continued into the second half, and we are confident in delivering on our expectations for the full year. In particular, we are well set to capitalise on what we anticipate will be a summer of strong demand in all our markets including continental Europe, where the Olympics and the European Championships will help boost footfall in airports and stations.”
The group maintained its guidance for the full year, forecasting like-for-like sales growth of between 6% and 10% and earnings before interest, taxes, depreciation, and amortisation of between £345million and £375million. The company has stated that the Olympics and Euros, along with recent acquisitions, are expected to boost its full-year figures, contributing around 3% of sales growth.
In February, SSP secured a deal to acquire Airport Retail Enterprises (ARE), an airport bar and restaurant firm in Australia, as part of its expansion strategy in the country. This acquisition will add ARE’s 1,500 staff and 62 sites across seven airports to SSP’s portfolio, including access to four new airports in Australia where it currently does not operate.
SSP, which employs 43,000 people, reported a 14.7% rise in half-year UK like-for-like revenues. However, growth in the second quarter slowed to 12.1% due to train strikes, but the group said overall industrial action was less than a year ago, which helped boost sales. The return of workers to offices and the recovery in overseas travel also provided a boost to trading in the UK.
