SSP Group restarts dividends as gross sales exceed pre-Covid ranges
- The Upper Crust and Caffe Ritazza proprietor operates over 600 food-to-go retailers
- SSP’s turnover climbed by 37.7% to over £3billion within the 12 months ending September
- SSP Group shares had been one of many high 5 FTSE 250 risers on Tuesday morning
SSP Group has reinstated dividend funds after the continued restoration in air and rail journeys led to commerce surging final 12 months.
The Upper Crust and Caffe Ritazza proprietor, which operates greater than 600 food-to-go retailers, intends handy out a 2.5 pence per share full-year dividend.
It final paid dividends three years in the past, earlier than new lending preparations struck on the outset of the Covid-19 pandemic prevented the London-based agency from declaring any shareholder returns.
Payout: Upper Crust proprietor SSP Group, which operates greater than 600 food-to-go retailers, intends handy out a 2.5 pence per share full-year dividend
The pandemic closely impacted SSP resulting from work-from-home steerage and onerous cross-border journey restrictions slashing footfall on the firm’s rail and airport institutions.
SSP’s annual gross sales have now exceeded pre-Covid ranges, climbing by 37.7 per cent to simply over £3billion within the 12 months ending September, due to bumper progress throughout all territories amid an absence of Covid-related journey restrictions.
Like-for-like revenues soared by 31.5 per cent regardless of cost-of-living pressures and industrial motion by railway staff throughout Britain and Continental Europe.
The sustained rebound in air journey buoyed buying and selling in each territories, whereas the latter market additionally benefited from an prolonged summer time vacation season.
SSP’s turnover was additional uplifted by new outlet openings and the acquisition of Midfield concessions considerably increasing its presence in North America.
Solid gross sales progress helped the agency’s working income enhance by 82.3 per cent to £167million and pre-tax income climb by round 250 per cent to £88million.
Patrick Coveney, who grew to become SSP’s chief government final 12 months following a decade accountable for Irish meals big Greencore, hailed the corporate’s ‘sturdy monetary, operational and strategic progress’.
He added: ‘We are persevering with to put the foundations for accelerated enlargement in key progress markets akin to North America and Asia Pacific.’
SSP revealed its gross sales within the eight weeks for the reason that begin of October had been up 22 per cent at fixed foreign money ranges.
Although the financial backdrop stays difficult, SSP anticipates extra income progress this 12 months, supported by a sustained restoration in passenger demand and worth hikes driving larger common per-customer spending.
The enterprise expects annual turnover of between £3.4billion and £3.5billion, pushed by like-for-like revenues increasing by 6 to 10 per cent and up to date contract wins. Operating income of £210million to £235million are additionally forecasted.
SSP Group shares had been 4.7 per cent larger at 223p on Tuesday morning, making them the second-highest riser on the FTSE 250 Index.
