Weak pound and summer holiday boom give travel caterer SSP a boost

Alys Key
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The Merchant of Bishopsgate at Liverpool Street Station is one of the group's locations (Source: SSP)

Shares in travel food operator SSP jumped more than six per cent today as the group said it was likely to benefit even more than expected from the weaker sterling.

SSP, which operates a range of food and drink outlets in airports and train stations including the Upper Crust and Ritazza brands, released an update on its trading in the fourth quarter this morning.

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The company said it expects revenue for the three months to the end of September to be up 17.5 per cent due to currency fluctuations. In constant currency, revenue is set to gain 14.8 per cent on this time last year.

The group said annual results were now on track to be ahead of previous expectations, with the positive effect of currency conversion increasing to eight per cent.

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Shares in the company jumped 6.4 per cent today to 532.5p

Like-for-like sales in the final quarter are expected to be up around three per cent, driven by an increase in passenger numbers.

It's been a bumper summer for many of Europe's airlines, helping the travel-focused SSP to draw in more business.

But the group said that trading in the rail sector remained soft. The company operates outlets in several UK rail stations, including Liverpool Street where it runs the Merchant of Bishopsgate as well as the Delice De France, M&S Simply Food and Starbucks.

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