Upper Crust owner hails 'resilience' in tough market

The owner of Upper Crust and Millie’s Cookies has reported a jump in UK and Ireland sales.

SSP Group, which operates food and drink outlets in rail stations and airports, says its financial performance in recent months has been “resilient” in a “challenging environment”.

Revenues totalled £3.8 billion for the year to the end of September, which were five per cent higher than the year before.

However, passenger numbers fell in regions surrounding the Middle East and the US.

The business says the figures leave it poised to deliver full-year operating profit slightly lower than expected at about £230 million.

Between July and September, the firm saw like-for-like sales in the UK and Ireland jump by nine per cent, driven by strong trading over the summer period and improvements to outlets including refurbished Marks & Spencer shops.

SSP operates further franchised stores for brands including Starbucks, Burger King and The Breakfast Club.

However, the FTSE 100-listed company has cautioned a sharp drop in passenger numbers internationally.

It said a sharp contraction in the volume of passengers in the Gulf and in key travel hubs across the region since the Middle East conflict had impacted trading, as well as in the surrounding Eastern Mediterranean, Asia Pacific and Indian regions.

Passenger numbers were also subdued through North America.

Patrick Coveney, SSP Group chief executive, said: “We have delivered a resilient fourth quarter trading performance in a challenging environment.

“Despite the significant impact of the Middle East conflict on passenger volumes in APAC & EEME, the strength and diversification of our portfolio leaves us well-positioned to deliver group earnings per share for the year in line with current market expectations.”

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