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SSP hit as travel recovery falters on global spike in COVID-19 infections

If current trends continue, SSP expects to have 1,200-1,500 units open over the summer

SSP Group plc (LON:SSPG), the station and airport café operator, said the recent spike in global Coronavirus (COVID-19) infections and subsequent travel restrictions hampered its recovery.

Results for six months to end March 2021 showed revenues fell 79% to £257mln. After a brief uptick when airports, bus and rail stations started to reopen, sales in the current quarter dropped back.

Currently, revenues are approximately 70% lower compared with this time in 2019. For the third quarter as a whole it expects sales to be approximately 75% lower.

COVID-19 infections have flared again in places such as India and Thailand after a small improvement in early June as the UK and US reopened, the company said.

Losses for the half-year were £300mln (£34mln) or £182mln (£11mln) on an underlying basis.

The Uppercrust and Cafe Ritazza operator described it as a resilient performance in a very challenging market and added it was in a strong position to bounce back when travel normalises again.

A further 250 units had reopened since the end of its first half to take the total of outlets trading to 1,150.

If current trends continue, it expects to have 1,200-1,500 units open over the summer, in line with the recovery in demand.

Simon Smith, chief executive, added: "The recovery in domestic and leisure travel has now begun in a number of our territories, and our teams are busy re-opening units in line with passenger demand.

Net debt at the year was £2bn with free cash outflow currently running at around £23mln per month.

SSP raised £451mln through a rights issue in April and with that cash said its liquidity was £853mln.

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