SSP Group FY profits to jump despite weak Europe trade

3rd Oct 2024 07:04

(Sharecast News) - SSP Group said it expected to deliver a jump in full-year profits, despite weaker earnings in Continental Europe, especially in France where demand during the Olympics was lower than anticipated.

The company, which operates food outlets such as Upper Crust at train stations and airports, on Thursday said core profits for the year to September would come in at £350-360m, up from the £280m reported a year earlier and lower than planning assumptions of £375m at the top end.

Revenue was expected to be £3.5bn, at the top end of assumptions and up from £3bn a year earlier. Operating profit is forecast to be £210m-220m compared with £164m in 2023.

Operating profit in Continental Europe was forecast to be lower, reflecting the impact of the scale and timing of contract renewals and new contract mobilisation, industrial action and weak trading in the motorway services business, which SSP is exiting in 18 months.

For 2025, the company said it was confident of good revenue and margin progression, underpinned by continued structural growth in travel, returns on its investment programme and a secured new contract pipeline.

"Further progress will be supported by the set of current and planned actions that we are taking to drive returns in Continental Europe," the company added.

Reporting by Frank Prenesti for Sharecast.com