Upper Crust owner SSP sees profit soar despite 'disappointing' European performance

Upper Crust owner SSP has reported a 23% increase in operating profit to £206m, up from £167m last year, despite a "disappointing" performance in continental Europe. The firm's pre-tax profit also saw a significant rise of 35%.

This was driven by strong sales growth, with revenue increasing by 14% year-on-year to £3.4bn. The London-listed company, which operates cafes, bars and restaurants in train stations and airports, attributed the positive results to good performances in North America, the UK and Asia-Pacific, as reported by City AM.

Patrick Coveney, CEO of SSP, said: "SSP has strong fundamentals and benefits from the global travel market’s sustained long-term growth trends This was clearly visible in the FY24 performance in three of our four regional markets," However, he acknowledged that Continental Europe performed below expectations, impacting Group EPS and free cash flow. Coveney revealed plans to accelerate the firm's "profit recovery plan" in continental Europe through a number of renewed and extended contracts.

The company reported "encouraging" trading in the first eight weeks of the new financial year, with revenue up 13% on the same period last year. Looking ahead, it estimates revenue of between £3.7bn-£3.8bn and an operating profit of £230m-£260m for the next year.