SSP hails strong start to year, backs FY guidance

Upper Crust owner SSP backed its full-year guidance on Thursday as it hailed a strong start to the year, with revenues ahead of pre-pandemic levels amid a further recovery in the travel industry.

The company, which operates food and drink outlets at train stations and airports, reported group revenues of £871m for the four months to the end of January 2023, up 103% versus 2019 and 167% compared to a year earlier.

SSP put the revenue performance down to further recovery in passenger numbers, led by strong leisure travel demand over the extended holiday season.

"This momentum continued through the autumn and into the winter, demonstrating a resilience to the broader pressures on consumer spending," it said. "Business and commuter travel also continued to recover, albeit at a slower pace.

"We have continued to make progress extending and renewing contracts as well as winning new business, including in North America as well as in India, Malaysia and Thailand, to augment our strong pipeline. Approximately two thirds of sales from net new business openings in our secured pipeline are expected to come from the North America and Rest of World regions."

SSP said it was on track to meet its 2023 guidance for revenues of between £2.9bn and £3bn and EBITDA of £250m to £280m, as strong trading across other regions offsets the impact of UK rail strike action.