Upper Crust owner SSP on track for earnings jump after strong summer trading

Upper Crust owner SSP has announced it’s on track for a nearly one-third increase in annual earnings following robust summer trading and a significant uptick in its UK operations. The company, known for its food outlets at travel hubs, reported that like-for-like sales in the UK and Ireland soared by 9% in the quarter ending September, fuelled by a surge in air travel and fewer rail disruptions as strike action subsided. Across the group, like-for-like sales rose by 6% over the same period.

This strong performance in the fourth quarter is expected to propel the group’s earnings to between GBP210m and GBP220m – a 30% year-on-year rise when adjusted for currency fluctuations – and a 17% boost in revenues to approximately GBP3.5 billion. SSP Group’s CEO Patrick Coveney commented on the positive trend: “There has been good trading momentum across our business throughout the fourth quarter.” He also noted a “material improvement in the performance of our UK business”.

He added: “Overall, this year, we expect the group to deliver a significant increase in year-on-year profitability and margins.” Like-for-like sales growth in Europe was pegged at 3%, with a sluggish performance in France due to lower-than-anticipated demand during the Paris Olympics, and in Germany, where summer trade at motorway service stations was disappointing. Mr Coveney revealed: “We have had challenges in some parts of our Continental European business, which we are addressing through a series of actions that will build margins.”

The company is taking decisive steps including revamping its leadership team structure, implementing cost reductions, and pulling out from the German motorway services sector.

Despite setbacks in Europe, the firm anticipates stronger performance across other areas, projecting further enhancements for 2024-25.

“Our performance in 2023-2024 gives us confidence that we will see a year of good revenue and margin progression in 2024-25,” the company stated.