Source - Alliance News

SSP Group PLC on Wednesday announced that its sales were up 110% so far in its second half year and that it had completed its purchase of multiple Midfield Concessions airport units.

It also expects revenue and earnings this year to reach the upper end of previous forecasts.

The London-based travel food and beverage outlet operator said revenue for the first ten weeks of the second half of the year ending September 30 was more than double that of the same period in 2019, with improved underlying momentum following the first six weeks.

It said the revenue growth included the benefits of net contract gains, the accelerating mobilisation of its significant pipeline, and price increases compared to 2019 levels.

SSP said North America remained its strongest performing region with revenues also more than double 2019 levels due to increased domestic travel and the scale of regional net gains. Revenue in continental Europe and the rest of the world also has increased considerably, ‘driven by a strong performance across our Air business and despite being held back by currency movements and industrial action.’

‘Our strong momentum in extending and renewing contracts as well as winning new business has been maintained in the second half to date,’ the company added.

SSP also said it has completed its acquisition of Midfield Concessions units across six airports, slightly earlier than expected.

The company continues to anticipate revenue for the year to be at the upper end of its predicted range between around £2.9 billion and £3.0 billion, and earnings before interest, tax, depreciation and amortisation between around £250 million and £280 million.

‘We are pleased to report that the strong momentum across our business has continued into the second half of the year,’ commented Chief Executive Officer Patrick Coveney. ‘Our acquisition of the Midfield Concessions business in the USA, which includes 40 units across seven airports, has now largely completed, adding to our excitement about the prospects for our North American business.’

Shares in SSP were up 0.4% at 258.60 pence in London on Wednesday.

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