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(Alliance News) - SSP Group PLC on Friday said that it has seen a good start to its financial year, though it noted an impact from the Omicron variant of Covid-19.
In the four-month period from October 1 to January 30, SSP said that group revenue was at 62% of 2019 levels. Group sales in the last eight weeks from December 6 stood at 57% of 2019 levels.
"The spread of the Omicron variant around the world and the subsequent government restrictions have inevitably had an impact on passenger numbers in many of our markets," SSP added.
In the first nine weeks of its financial year, sales had reached 66% of 2019 levels, SSP said in December.
The London-based food and beverage outlet operator, which operates brands such as Upper Crust, said that trading remained resilient during December and throughout the holiday period before softening in January.
SSP added that in recent weeks, trading has been more "encouraging" with sales now trending positively thanks to the strength in the rail sector, as commuter travel returned.
SSP said that its underlying earnings before interest, tax, depreciation and amortisation were positive in the first quarter and its net cash flow was "broadly" neutral. It added that it had fully repaid the GBP300 million it had drawn from the Bank of England's Covid Corporate Financing Facility.
Looking forward, SSP said it was continuing to manage unit openings and closures in response to fluctuating demand. It currently has 1,950 units open, which it says represents 72% of its estate. It expects a return to like-for-like revenue and Ebitda margins at a similar level to 2019 by 2024.
Shares in SSP were up 2.9% at 271.90 pence each on Friday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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