SSP Group increased UK sales by 22.8% to £207m for the first three months of the 2024 financial year.
The travel concessions operator reported UK like-for-like growth up 17.1%, reflecting good passenger numbers in the air sector, further improvement in rail passenger volumes as commuters return to working in offices, and less industrial action compared with last year.
Group sales at the Upper Crust and Ritazza operator in the first quarter were £788m, up 21.2% on last year on a constant currency basis.
Like-for-like sales growth of 14.3% reflected the further recovery of passenger numbers.
Net contract gains of 6.9% were in line with expectations.
Since the close of the first quarter, SSP has continued to see good trading momentum, notwithstanding the impact from industrial action which is expected to persist in both Continental Europe and the UK throughout the second quarter.
Despite macroeconomic and political uncertainty, SSP believes that demand for travel will “remain resilient and the industry is well set for both short-term and long-term structural growth”.
The concessions group said the financial year has started well, with revenue momentum being maintained and inflationary pressures on operating costs being mitigated through productivity and pricing initiatives.
Expectations for FY24 remain in line with expectations.
Patrick Coveney, CEO of SSP Group, said: “I am pleased with the good start that SSP has made to the new financial year. There continues to be encouraging momentum in our key growth markets of North America and Asia Pacific and we have also delivered double-digit like-for-like growth in our more established markets of the UK & Ireland and Continental Europe. Global demand for travel continues to grow and we have a strong pipeline of secured new contracts around the world. This, combined with our constantly improving customer proposition and our proven ability to mitigate inflationary pressures, means that we remain confident in our prospects for the balance of FY24 and beyond.”
