SSP starting to mobilise 200-strong pipeline of new sites

Travel caterer SSP Group has said it is starting to mobilise a pipeline of around 200 additional units which are secured but not yet built and are expected to add around £275m to sales by 2024.

In the group’s financial results for the year ended 30 September 2021, revenue was £834.2m, down 41.8% against 2020 and 70.1% down on 2019. The group also saw a loss before tax of £411.2m. Around 72% of its estate has reopened.

However, its financial position “strengthened significantly” following a £450.8m rights issue in April, and it reported a strong liquidity position, with cash and undrawn committed facilities of approximately £935m at the end of September.

Revenues in the first nine weeks of the new financial year were averaging approximately 66% of 2019 levels. While there remained some uncertainty in the immediate outlook over the winter months, particularly over the potential impact of the Omicron variant on travel restrictions, the business said it was confident in its ability to manage any near-term volatility. Medium term expectations remained unchanged, including a return to like-for-like revenue at broadly similar levels to 2019 by 2024.

While some uncertainty also remained about the longer-term impact of working from home on commuter and business travel, SSP said it anticipated a full recovery in leisure travel, which drives most of its business.

Jonathan Davies, deputy chief executive and chief financial officer of SSP Group, said: “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. Furthermore, we expect to utilise our significant financial capacity and competitive strength to accelerate our new business growth and to capitalise fully on the recovery in the travel sector."

Last month, SSP announced the appointment of Patrick Coveney to the role of group chief executive, effective 31 March 2022, following the announcement that Simon Smith is to leave the business this month.