SSP Group sees sales “trending positively” in recent weeks
Should there be no further government restrictions being introduced, the company said it is well-positioned to trade in summer.
SSP Group is seeing its sales trend positively in recent weeks, following the lifting of government restrictions, strengthened trading in their railway sector and the return of commuter travel.
According to its latest trading update covering the period from 1 October 2021 to 30 January 2022, revenues were 62% of 2019 levels.
Overall group sales in the latest eight weeks (from 6 December to 30 January) at 57% of 2019 levels. SSP explained that trading remained “resilient” during December and throughout the holiday period, before “softening” in early January.
“The recent weeks have been more encouraging, as government restrictions have been lifted in the UK and some Continental European markets, with sales now trending positively again, driven mainly by strengthening trading in the Rail sector as commuter travel returns,” the group said.
The group added it is managing unit openings and closures in response to the fluctuating demand and currently has 1,950 units open.
In line with the fourth quarter of 2021, underlying EBITDA on a pre-IFRS 16 basis was positive during the first quarter of the financial year.
“Whilst the Omicron variant continues to have some impact on trading, we are confident in our ability to manage any short-term volatility and, subject to no further government restrictions being introduced, we are well positioned for the important summer trading period,” the group said.
Medium-term expectations for a return to like-for-like revenues and EBITDA margins at broadly similar levels to 2019 by 2024 remain unchanged.
