SSP maintains outlook despite macroeconomic uncertainty
By Abigail Townsend
Date: Tuesday 20 May 2025
(Sharecast News) - Upper Crust owner SSP Group reiterated its full-year guidance on Tuesday, despite mounting macroeconomic uncertainty across its key markets.
The travel catering specialist, which is also a Marks & Spencer franchisee, saw underlying revenues rise 9% to £1.67bn in the six months to 31 March, or by 12% on a constant currency basis. Operating profits jumped 20% to £45m, while losses per share narrowed to 0.4p from 1.0p.
Sales in North America were up 13%, boosted by acquisitions, while in Continental Europe they rose 3% and by 9% in the UK.
On a reported basis, group operating profits fell sharply, however, down 74% to £15m, hit by non-cash IT transformation costs and impairments in France and Italy.
Looking to the rest of the year, SSP said group like-for-like sales had risen 5% in the six weeks to 11 May. In the UK, sales were up 10%, despite a "modest" impact at SSP's M&S units following a cyber attack at the retailer.
It warned that "recent geopolitical events have led to a heightened level of uncertainty across some of our travel markets, in particular North America".
But it maintained full-year guidance, for revenues of between £3.7bn and £3.8bn and earnings per share of between 11.5p and 13.5p.
It also confirmed it had received in principle regulatory clearance to proceed with the initial public offering of Travel Food Services in India, its home market. The market debut, which was first announced in December, is now scheduled for the summer.
SSP had initially expected the IPO to complete by spring but did not receive clearance from the SEBI until April.
"Given recovering Indian stock market conditions, completion of the IPO process is now targeted for the summer," SSP confirmed.
Greg Johnson, analyst at Shore Capital, called the results "encouraging".
He continued: "Despite macro uncertainties - for example, US travel and M&S in the UK - the second half has started robustly.
"With an accelerated programme to drive profitability and returns, we continue to anticipate strong progress over the medium term, while with capital investment set to fall below £200m in the 2026 full year, we see an increasing prospect of share buyback later this year."
SSP is a house stock at Shore Cap.
As at 0945 BST, shares in SSP were up 3% at 172.3p.
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