SSP sees Q1 sales slump on second Covid wave after FY loss

Travel food outlet operator SSP Group said it expected an 80% fall in first quarter sales as the second wave of Covid-19 hit its UK and European markets with volatility continuing into the second three months of the financial year.

The owner of Upper Crust reported an annual loss of £425m compared with £197.2m profit as the pandemic battered that global travel industry. Revenue slumped 47% on a constant currency basis to £1.43bn.

On an underlying basis, SSP reported an underlying pre-tax loss of £239.6m for the year to September 30, compared with a profit of £203.2m a year earlier.

“Whilst we expect passenger numbers to remain subdued over the winter, we are optimistic that, alongside good progress with the vaccination programme, we will see a significant upturn in both domestic and international travel from the spring,” said chief executive Simon Smith.

SSP, which operates outlets at train stations and airports, has diversified its income streams be selling essentials such as masks and sanitisers, as well as providing food for Covid-19 testing centres at airports and airline staff.

It added that it had agreed on further covenant waivers and amendments up to March 2022, having already cut investments, stopped dividends and gone to shareholders for emergency cash to weather the Covid storm.