SSP profits hit £118m, buoyed by global travel boom, but flags 'headwinds'

SSP Group, which owns Upper Crust, saw profits jump by more than a third over the past year, despite a "disappointing" performance in continental Europe

Upper Crust owner SSP Group has announced a significant 35% surge in annual profits to £118.6m, buoyed by the thriving global travel market, and anticipates further UK growth despite rising wage costs from recent Budget changes.

The company, which operates food outlets at travel hubs like airports and train stations, saw a 9% increase in worldwide sales on a like-for-like basis, although it faced a "disappointing" performance in continental Europe, affected by issues such as train strikes, leading to a 49% drop in operating profits there to £18m.

Despite upcoming challenges including increased employers' national insurance contributions (NICs) and minimum wage hikes starting next April, SSP Group is optimistic about "further growth and margin progression" in the UK. Early signs are positive, with group like-for-like sales climbing 5% in the first eight weeks of the new financial year.

Patrick Coveney, SSP Group's chief executive, commented: "SSP has strong fundamentals and benefits from the global travel market’s sustained long-term growth trends."

He added: “In continental Europe, we are accelerating our profit recovery plan, in particular by building returns from the significant number of recently renewed and extended contracts.

"Across the wider group, our priorities remain on sharpening our performance culture to drive profitable growth and returns, so as to unlock the full potential of SSP."