SSP losses widen amid pandemic hit
By Michele Maatouk
Date: Wednesday 08 Dec 2021
(Sharecast News) - Upper Crust and Ritazza owner SSP reported a widening of its full-year losses on Wednesday as it took a hit from Covid-related restrictions.
In the year to 30 September, underlying pre-tax losses widened to £393.1m from £371.8m in 2020, with revenue down 41.8% to £834.2m. Compared to 2019, revenue was 70.1% lower.
SSP said revenue trends have improved steadily over the summer and autumn. In the first nine weeks of the new financial year, revenue averaged 66% of 2019 levels.
The company said Covid-19 continued to have a significant impact on trading, with travel restrictions affecting all of its major markets for a large proportion of the year. The first half was marked by long periods during which extensive government restrictions on travel resulted in passenger numbers remaining very depressed in both the air and rail sectors, with revenue falling to only 20% of the equivalent level in the first half of 2019, it said.
Still, passenger numbers increased steadily over the second half of the year, led by domestic and short-haul leisure travel.
Deputy chief executive officer and chief financial officer Jonathan Davies said: "Though still in the recovery phase, SSP has made strong progress, particularly during the second half of the year, when we delivered positive underlying EBITDA and strong free cash flow generation.
"The group has continued to re-open units in line with passenger demand, with 72% of units currently open, and has delivered revenues of 66% of 2019 levels in the first nine weeks of the new financial year.
"Looking ahead, the medium-term outlook remains unchanged, which is for a return to broadly pre-Covid levels of like-for-like revenue and EBITDA margins by 2024. We are now starting to mobilise the pipeline of around 200 new outlets that have already been secured and we anticipate delivering approximately 15% of additional net contract gains over the medium term."
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