Ahead of SSP Group's (LSE:SSPG) final results, its shares have been making a recovery from almost three-year lows in October, having tumbled over several weeks after the Upper Crust and Le Grand Comptoir owner provided a pre-close update that looked mixed at worst.
The apparent blot on its copybook was that earnings per share would be closer to 7p, the bottom of its previously guided range, attributed to a strengthening pound.
The FTSE 250 group, which runs food outlets in airports and train stations, including on behalf of brands such as Brewdog, said it still expected to make revenue of £3 billion, with sales in the last 16 weeks at around 116% of 2019 levels on a constant currency basis, which was an improvement from the 112% stated in its previous update as passenger numbers continued to recover.
This, as well as underlying profits (EBITDA) of around £280 million are both around the upper end of previous guidance.
SSP management gave mid-term guidance that it believes demand for travel will "remain resilient to pressures on consumer spending and is well set for near and long-term structural growth", despite macroeconomic uncertainty and sustained elevated levels of inflation that seem to have weighed on many consumer-facing shares of late.
For 2024, it said EBITDA is expected to be in the range of £325-375 million, with the strengthening of sterling against most of its major currencies at current rates translating to around a £20 million impact.
The group might take the opportunity of the results to talk about the opportunities from AI for the business, having last month opened two "frictionless, checkout-free stores", at Oslo and Dublin airports, using AI technology.
AI-powered camera technology and weight-sensor-enabled shelving from Zippin detect the items customers have picked up, while payment processing technology from Planet enables the "frictionless" walk-out process.