SSP Group plc (LSE:SSPG) leapt almost 10% as the coffee shop and fast food outlet owner saw profits in its latest financial year jump by a quarter.
The Upper Crust and Café Ritazza owner said trading had been strong in all regions bar continental Europe with revenues also well ahead in the first eight weeks of this year to 25 November.
Revenues for the year to end September 2024 were up 14% at £3.43 billion with operating profits 26% better at £206 million as margins improved.
UK sales rose by 15% with underlying profits up by 26% to £73 million and outstripped only by the US, which saw a 47% jump to £81 million.
Sales in the first eight weeks of this year are up by 13% with like-for-like growth of 5%, SP a said, adding it expects revenues of around £3.7-3.8bn with a £230-260m operating profit at constant currencies.
Action is being taken to improve the performance in Europe, SSP added which still expects the UK to grow sales and margins despite the additional costs from the tax and wage hikes announced in the recent Budget.
Patrick Coveney, SSP’s chief executive, said: “As we reach the next phase of our evolution post-Covid and with strong underlying growth across the Group, our focus now is on driving greater value from a strengthened base.
“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.”
The annual dividend rises by 40% to 3.5p.