Upper Crust owner SSP holds sales forecast after Iran war slowdown

* Like-for-like ⁠sales growth slowed to 3% in early ​H2

* Passenger numbers in UK, N. America, Continental Europe stable

* SSP shares, which have fallen since Iran war began, up 1.2%

* Half-year ​operating ‌profit to March 31 up 17.8%

May 19 (Reuters) - Upper Crust owner SSP Group said on Tuesday that ⁠weaker passenger flows in parts of Asia and Europe ⁠as a result of the Iran ​war had tempered sales in recent weeks, although strength in its core markets helped it maintain its annual forecast.

SSP, which operates food outlets at airports and train stations worldwide, said passenger numbers in Britain, ​North America and ‌Continental Europe, which make up more than 80% of its sales, had remained largely unaffected by the conflict.

"We still have growth, just not as much as before," SSP CEO Patrick Coveney told Reuters, referring to overall sales growth.

Coveney said SSP's Gulf operations had declined year-on-year, but these ​represent just 2% of group sales across airports in the UAE, Bahrain, Qatar and Saudi Arabia. ‌Those locations are currently trading at around 60% of prior year levels, he added.

"We have also seen a fall-off in the very strong ‌growth that we were having in some of the Asian and Mediterranean airports that would have had lots of connectivity into the Gulf." SSP said like-for-like sales in the first six weeks of ​the second half of its fiscal year rose by 3%, marking a slowdown compared with 5% in the first and ‌second quarters from October to March. The company reaffirmed its annual outlook based on conditions remaining as they are now.

Shares in SSP, which have fallen by about 25% since the war began with ⁠U.S. and ⁠Israeli strikes on Iran on February 28, were 1.2% higher at ‌0903 GMT.

SSP said it would have to reassess its outlook if there were any material shift, whether a re-escalation ​or a significant further reduction ​in aviation fuel availability and pricing that would impact flight schedules.

The ‌company said its underlying pre-IFRS operating profit rose 17.8% to 52 million pounds ($69.64 million) in constant currency for the half year ended March 31.

SSP Group