SSP reports group revenues at 62% of 2019 levels

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Food and drink travel hub business SSP says that its group revenues were at around 62% of 2019 levels for the four-month period to 30 January 2022, as the impact of Covid on the travel sector continued to bite.

It describes the period as a ‘good start’ to the new financial year, notwithstanding the impact of the Omicron variant of Covid-19 on the travel sector.

As reported in its preliminary results in early December, trading at the group had recovered well over the summer and early autumn. Sales were running at around 66% of 2019 levels in the first nine weeks of its new financial year, to 5 December 2021, led by the rail sector at 71% and the air sector at 62%, which it says was boosted by an extended holiday season in the autumn across the UK, Continental Europe and North America.

However, the spread of the Omicron variant and subsequent restrictions impacted passenger numbers in many of its markets, with overall group sales at 57% of 2019 in the latest eight-week period to 30 January 2022.

Trading remained resilient during December and throughout the holiday period before softening in early January, it said. Trading in recent weeks has been more encouraging as Plan B restrictions were lifted, as well as restrictions in some Continental European markets, with sales now trending positively again, driven mainly by strengthening trading in the rail sector as commuter travel returns.

SSP is currently operating only around 72% of its estate – some1,950 sites - a similar number to that reported in early December with our Preliminary Results.

The group says its medium-term expectations are for a return to like-for-like revenues and EBITDA margins at broadly similar levels to 2019 by 2024.