(Alliance News) - SSP Group PLC on Wednesday unveiled a slump in revenue and a widened loss, as pandemic countermeasures continued to restrict the travel sector.
SSP operates branded food, beverage and retail concessions in around 180 airports and 300 railway stations across 35 countries.
Revenue slumped 79% to GBP256.7 million for the half-year that ended March 31, with sales severely hit by the pandemic and ensuing reductions in passengers passing through airports and train stations. Like-for-like sales also tumbled 79%.
SSP's pretax loss widened to GBP299.7 million from GBP34.3 million a year ago.
Passenger numbers remained depressed during the first quarter of the financial year and, with infections picking up in key markets alongside the emergence of new variants, second-quarter revenue continued at "similarly low levels". SSP noted renewed travel restrictions in its Rest of the World division, particularly in India and Thailand.
Since the end of March, though, SSP has seen some improvement in trading, it said, driven by the easing of lockdown restrictions in the UK as well as an uptick in passengers numbers in North America.
"Whilst the short-term outlook remains highly uncertain, we remain positive about a further upturn in both domestic and leisure travel across the remainder of the current financial year. We anticipate that the profit conversion on the lower sales, compared with pre-Covid levels, will continue to be in the region of 25% during the second half of the financial year," SSP said.
"Over the past year we've strengthened our competitive advantages and created a more flexible operating model. We have a strong balance sheet and can see many opportunities to accelerate growth as the market recovers and to deliver sustainable growth for the benefit of all our stakeholders," Chief Executive Officer Simon Smith added.
Specifically, the company plans to take advantage of the slump in the travel sector to capitalise on lower rents and secure additional available space left by competitors who are unlikely to reopen.
The company said its long-term outlook remains unchanged, with like-for-like revenues predicted to reach pre-Covid levels by 2024.
SSP Group shares were trading up 1.2% at 311.84 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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SSP Group (SSPG)