Upper Crust Owner SSP Set for Earnings Leap After Summer Boost
The owner of Upper Crust, SSP, is poised for a significant increase in annual earnings following a strong summer trading period and a notable improvement in its UK operations. The group, known for its food outlets at travel locations, reported a 9% surge in like-for-like sales in the UK and Ireland over the three months ending in September. This boost was attributed to robust demand in air travel and reduced disruptions in rail services due to easing strikes.
Overall, SSP experienced a 6% increase in group-wide like-for-like sales during the same quarter. The strong performance in the fourth quarter is expected to drive earnings to approximately £210 million to £220 million, marking a 30% rise year-on-year on a constant currency basis. Revenues are also anticipated to grow by 17% to around £3.5 billion.
CEO of SSP Group, Patrick Coveney, noted the positive trading momentum across the business in the fourth quarter, highlighting a significant improvement in the UK segment. Despite challenges faced in Continental Europe, particularly in France where demand was below expectations during the Paris Olympics, SSP remains optimistic about its future performance.
To address the issues in Continental Europe, SSP is implementing various measures such as restructuring the leadership team, cost-cutting initiatives, and exiting the German motorway services business. While the region experienced a 3% like-for-like sales growth, performance was hindered by subdued activity in France and Germany.
Looking ahead, SSP expects further improvements in the financial year 2024-25, building on the success of the previous year. The company remains confident in its ability to achieve positive revenue and margin growth in the upcoming year, despite the challenges faced in certain European markets.