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Upper Crust owner SSP sees losses widen on Covid travel restrictions

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Mike Clasper, Chairman of the Board, said, "Throughout the past 16 months, Simon and our Executive team have done an excellent job in steering SSP through the enormous challenges presented by the pandemic, acting very rapidly to protect the business and its cash flow, create a more flexible operating model and strengthen the balance sheet. SSP has a very clear strategy and significant competitive strengths, placing it in an excellent position to take advantage of the many opportunities for growth that will be presented by the recovery in the travel sector."
SSP's outlets are focused on travel hubs, which have suffered a huge drop in passenger numbers during the pandemic.

Upper Crust owner SSP today said its half year losses had widened as Covid travel restrictions battered sales.

The London-based food provider, whose outlets are focused on travel hubs such as train stations, fell to an underlying pre-tax loss of £182m compared with a £10.7m loss in the same period in 2020.

Like-for-like sales and revenue both tumbled by 79 per cent in the six months ended 31 March, with the latter hitting £256.7m.

Following the financial update, shares in SSP fell 0.5 per cent as markets opened.

SSP, like all travel and hospitality firms, was hit hard by the pandemic last year and was forced to shut around 2,500 outlets, furlough over 22,000 employees and cut 14,000 jobs.

Earlier this year, SSP said that it would raise £475m through a rights issue to shore up its battered finances, warning that revenue would not return to pre-pandemic levels until 2024.

Simon Smith, CEO of SSP, was confident about the company’s outlook despite the hefty impact of the pandemic.

“Despite the challenging trading conditions SSP has continued to deliver strong operational and cash control.

“We have a strong balance sheet and can see many opportunities to accelerate growth as the market recovers and to deliver sustainable growth for the benefit of all our stakeholders.”