SSP Group expects UK 86% sales decline, European sales remain strong

SSP Group (LON: SSPG) has said it expects second-half sales to be 86% lower than the same period last year.

Owner of Upper Crust and Caffè Ritazza has said sales have been hit due to fall in trading at airports and railways as people are travelling less and working from home.

SSP Group has also warned that it is planning to cut up to 5,000 job losses amid the collapse in sales. After suffering from heavy losses over lockdown, the group said it would cut half of its UK workforce.

“We are now taking further action to protect the business and create the right base from which to rebuild our operations. We have therefore come to the very difficult conclusion that we will need to simplify and reshape our UK business, and we are now starting a collective consultation on a proposed reorganisation,” said chief executive Simon Smith.

Revenue is expected to reach £1.3bn.

“Covid-19 continues to have an unprecedented impact on the travel industry and on SSP’s businesses in all geographies,” said Smith.

“In the medium term we expect to see the gradual return of passenger travel to more normalised levels. The actions we are taking to rebuild the business will enable us to emerge fitter and stronger, positioning us to capitalise on future opportunities and delivering long-term sustainable growth for the benefit of all our stakeholders,” he added.

Whilst sales in the UK have dramatically fallen, sales in Europe in Germany and France remain strong.

SSP Group shares (LON: SSPG) are trading +12.34% at 203,00 (1600GMT).

Previous articleAstraZeneca and GlaxoSmithKline – the Covid-19 vaccine frontrunners to watch
Next articleNatWest launches attention-grabbing savings account with ‘3% interest rate’
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.