Upper Crust owner SSP expects revenue to rise as air travel recovers
- The company expects EBITDA to be higher than expected for December 2022
The recovery in air travel has led SSP to expect an increase in revenue. SSP operates brands ranging from its own Upper Crust to M&S and Burger King franchises, in airports and train stations in more than 30 countries.
In a statement to shareholders, the company said it expected revenue to reach around £3bn for the year to September 30 with underlying earnings before interest, tax, depreciation and amortization (EBITDA) of £ £280 million.
However, earnings per share will be at the lower end of the 7-7.5p previously forecast.
In a statement to shareholders, the food company cited a “continued recovery in passenger numbers” as explaining why revenue has strengthened in recent months.
He also said the food business cited a “continued recovery in passenger numbers” to explain why revenue has strengthened in recent months.
The company said it expects revenue from mid-June to the end of September to be 16 percent higher than the same period last year when offsetting currency changes.
This is better than the 10 weeks to June 11, when revenue rose 12 percent year-on-year.
But when currency fluctuations are taken into account, the company said revenue only increased 10 percent in both periods.
SSP Group Shares They were down 6 per cent to 230 pence 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 offering and digital proposition.
“In addition, revenues have benefited from price increases and higher net contract gains.”
The company said it had struggled partly because of the pound’s strengthening against other currencies it gains.
Patrick Coveney, chief executive of SSP, said: “We are enjoying a strong end 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 continued efforts to enhance our capabilities and increase efficiency, is generating strong results.
“Looking ahead, we continue to see significant opportunities for SSP to drive growth and profitability.”
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