29th Sep 2021 09:10
(Alliance News) - SSP Group PLC on Wednesday said its sales recovery in the next financial year will be slower than expected, as the recovery in travel remains uncertain and its performance continues to lag pre-pandemic levels.
London-based SSP operates food and drink outlets in airports and railway stations worldwide.
Shares were down 2.5% to 282.34 pence in London, among the worst performers in the FTSE 250.
In the fourth quarter of the 2021 financial year, which ends Thursday, revenue is expected to be around 47% of the level in the same period two years ago. That's an improvement on the third quarter, when revenue was 27% of the pre-pandemic equivalent.
The company has seen stronger sales in continental Europe and North America, while domestic and leisure travel have recovered more quickly than business and international travel. Areas with slow vaccine rollouts, such as Thailand and Australia, are performing more weakly.
SSP has now reopened 60% of its outlets, up from 30% at the end of the first half.
Looking ahead, SSP continues to expect to return to pre-Covid revenue and earnings before interest, tax, depreciation and amortisation margin by 2024.
Whilst we anticipate a return to Ebitda profitability [in financial 2022 on an underlying basis], the out-turn will depend on a number of external factors including the pace of the recovery, higher input cost inflation, the impact of labour availability and the extent of government support schemes," SSP said.
The company is pushing ahead with expansion plans, renewing contracts and winning new business in the UK, France and the Asia-Pacific region.
By Ivan Edwards; [email protected]
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