Why Upper Crust owner SSP is banking on hungry Euro 2024 football fans
Upper Crust owner SSP Group has reinstated its dividend after it netted £1.5bn in half-year revenue ahead of a busy summer season of sporting events.
The firm, which runs restaurants, bars and hospitality venues in airports and train stations, is proposing dividend of 1.2p per share, while the £1.5bn revenue haul represented a rise of 19 per cent year-on-year.
It comes ahead of both the Paris Olympics and Euros this summer, which are expected to massively boost traffic through European airports and railway stations.
SSP’s chief Patrick Coveney said the firm was “well set” to capitalise on “what we anticipate will be a summer of strong demand in all our markets – including Continental Europe, where the Olympics and the European Championships will help boost footfall in airports and stations.”
He added that trading momentum had “continued into the second half, and we are confident in delivering on our expectations for the full year.”
In the six months to April, SSP Group – which operates a host of providers often at airports and train stations across the world, in addition to Upper Crust – also reported a 24 per cent jump in earnings before interest, taxation, depreciation and amortization (EBITDA), to £106m.
While we face into macroeconomic and political uncertainty, we believe that demand for travel will remain resilient and the industry is well set for both short-term and long-term structural growth
SSP
Operating profit rose 21 per cent to £38m, although the firm still burnt through £240m in cash, up from £118m year-on-year.
Coveney said: “The first half has been a period of continued momentum, and we’ve made good strategic and financial progress.
“Our momentum is being supported by tailwinds from the high structural growth of the markets in which we operate, our proven ability to win and retain high-returning contracts and by our value creating acquisitions.
“Supporting our top-line growth is disciplined cost management, and we are pleased to have delivered year-on-year EBITDA growth of 24 per cent and to be announcing an interim dividend.”
Shares in SSP Group are up two per cent in the last month. Travel demand, particularly in aviation, has broadly held strong this year after rebounding from Covid-era lows and this summer is expected to be extremely busy.
“While we face into macroeconomic and political uncertainty, we believe that demand for travel will remain resilient and the industry is well set for both short-term and long-term structural growth,” SSP Group said in its statement to markets.