Shares in travel retail operator SSP Group, which owns Upper Crust and Ritazza, slipped five per cent this morning as it warned on the impact of airline capacity cuts and ongoing economic uncertainty.
The firm said it expects group revenue to rise despite facing challenges including the grounding of Boeing Max 737 planes and protests in Hong Kong.
In a trading update this morning the FTSE-250 firm said total group revenue growth in the fourth quarter is expected to be 7.8 per cent on a constant currency basis with like-for-like sales growth of about 1.8 per cent and net contract gains of six per cent.
SSP said it expects 10 per cent year-on-year revenue growth at actual exchange rates.
The company’s air travel business has been resilient despite facing hurdles including airport redevelopments in Europe and the grounding of Boeing Max 737 planes in North America.
Other challenges have been caused by the ending of its operations at Jet Airways in India, weaker Chinese passenger numbers and the recent protests in Hong Kong.
Sales at the firm’s rail operations were softer, but have been helped by the lower levels of disruption on the rail network.
“Despite the many external challenges, particularly towards the end of the year, SSP has performed well and guidance for FY 2019 remains unchanged,” the company said in a statement.
“Looking into 2020, many of these challenges will remain as well as ongoing economic uncertainty and the expectation of airline capacity cuts.
“That said, the diversity of the business and flexibility of the model leave us well placed to benefit from the significant growth opportunities in our markets and to create further value for shareholders.”