Profit jumps at Upper Crust owner SSP despite sluggish European performance
Upper Crust owner SSP has revealed its operating profit jumped by around a quarter despite a “disappointing” performance in continental Europe during its latest financial year.
In the 12 months, the firm’s operating profit rose by 23 per cent to £206m, up from £167m last year. Its pre-tax profit rose by 35 per cent.
This came on the back of strong sales growth, with revenue rising 14 per cent year-on-year to £3.4bn.
The London-listed firm, which runs cafes, bars and restaurants in train stations and airports, said that there were good performances in North America, the UK and Asia-Pacific, helping to offset a “disappointing” performance in continental Europe.
“SSP has strong fundamentals and benefits from the global travel market’s sustained long-term growth trends This was clearly visible in the FY24 performance in three of our four regional markets,” Patrick Coveney, boss of SSP said.
“However, Continental Europe performed below our expectations, which in turn impacted Group EPS and free cash flow,” he added.
Coveney said the firm was accelerating its “profit recovery plan” in continental Europe by building returns from a number of renewed and extended contracts.
The firm said trading had been “encouraging” in the first eight weeks of the new financial year, with revenue up 13 per cent on the same period last year.
Looking into the next year, it estimated that it would have revenue of between £3.7bn-£3.8bn and operating profit of £230m-£260m.
The firm said that “continued structural growth in passenger numbers” and the returns from its recent investment programme would more than offset the “cost headwinds” which will build next year as a result of the Budget.