SSP Group plc (LSE:SSPG) has swung back into profit in the year to 30 September 2022 led by a recovery in passenger numbers which has continued into the new financial year.
The market warmed to the news, with SSP shares up 2.6% as the travel food and beverage outlet operator reported pre-tax profits of £25.2mln compared to a loss of £411.2mln last year while revenues of £2,185.4mln were 162% higher than in 2021.
The company said revenues improved in the second half to 90% of pre-Covid levels compared to 64% in the first half.
“The recovery in passenger numbers has been led by strong leisure travel demand over the summer holiday season, which has continued well into the autumn,” the company said in its full-year results statement.
SSP also reported a good start to the current year with sales strengthening further to an average of 104% of 2019 levels in the first eight weeks, including revenues tracking above 2019 levels in North America, Continental Europe and the Rest of the World.
Based on the current pace of recovery in the travel sector, SSP forecasts revenues in the region of £2.9bn to £3.0bn in 2023 and in the region of £3.2bn to £3.4bn in 2024, with a corresponding EBITDA in the region of £250mln to £280mln in 2023 and £325mln to £375mln in 2024.
The group noted that its overall pipeline of secured net contract gains is currently expected to add around £550mln to annualised revenue by 2025, compared with 2019 levels.