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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Retail

SSP back in profit but cautious on outlook

The FTSE250 group expects to generate cash in the second half

SSP Group plc (LSE:SSPG) said it traded profitably in recent weeks as customers return to its outlets in airports, rail stations and bus depots.

By the end of September, the Caffe Ritazza and Upper Crust owner had reopened 60% of its outlets compared to 30% at the end of March.

More outlets will open as passenger numbers improve, it added.

SSP said t will post an underlying profit [EBITDA] in the final three months of this year due to cost controls and the improvement in revenue and will broadly break-even in the second half.

The FTSE250 group also expects to generate cash in the second half, helped by payment deferrals due to Coronavirus (COVID-19).

In the third quarter to end July, revenue improved to 27% of 2019 levels and in the fourth quarter is expected to be around 47% with its latest week running at approximately 53%.

Domestic travel-focused outlets in continental Europe and US are recovering fastest followed by the UK while the weakest performance is in areas with a slower COVID-19 vaccine roll-out.

Next year, to September 2022, SSP expects to produce a full-year underlying profit but now sees sales recovering slightly more slowly than previously, with the final outcome dependent also on cost inflation, labour availability and the extent of government support schemes.

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