SSP Group has reported UK & Ireland revenue at 94% of 2019 levels in its trading update for the 10 weeks from 1 April to 11 June 2023.
The operator of F&B outlets in travel locations said this reflected strong air sales despite the impact of ongoing industrial action on the UK rail sector.
The strongest performing region remains North America – where revenues were at 123% of 2019 levels – while continental Europe revenues were at 114% and the rest of the world at 115%. These were also driven by a strong performance across the air business, SSP said.
The group expects to provide an FY2023 pre-close trading update at the end of September, with revenue and EBITDA (pre-IFRS 16) expected to be in the range of c£2.9-3bn and c£250-280m respectively.
“Improving underlying trading momentum following the first six weeks trading as presented at our Interim Results was offset by the impact of foreign exchange rates, particularly in relation to the Euro, and the impact of industrial action affecting UK Rail. This revenue performance includes the benefit from net contract gains, as we accelerate the mobilisation of our significant pipeline, in addition to price increases compared to the same period in 2019.”
CEO Patrick Coveney said: “We are pleased to report that the strong momentum across our business has continued into the second half of the year. The strongest regional revenue performance continues to be in North America, reflecting both the growth in domestic air travel as well as the scale of our net gains in the region.
“Our acquisition of the Midfield Concessions business in the USA, which includes 40 units across seven airports, has now largely completed, adding to our excitement about the prospects for our North American business. We look forward to sharing that excitement with investors and analysts at today’s event in New York and, more broadly, to providing further detail on our plans to deliver long-term sustainable growth for all of our stakeholders.”
