Upper Crust owner SSP sees UK sales surge but warns of train strike disruption

30 January 2024 , 11:28

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Upper Crust owner, SSP, has seen an increase in UK sales

Upper Crust's parent company, SSP, has reported a rise in UK sales due to increased air travel and more commuters returning to work.

However, they have warned of continued disruption from train strikes. The firm, which operates food outlets at transport hubs like airports and railway stations, saw a 17.1% increase in sales across its UK and Ireland outlets in the last three months of last year.

Despite less impact from industrial action compared to the previous year, the group anticipates strike action will continue to affect them in the first quarter of 2024, both in the UK and Continental Europe. This comes as many UK train services were disrupted on Tuesday due to a walkout by drivers. Services across southern England were either cancelled or reduced as members of the Aslef union staged another strike over pay and conditions.

SSP's trading update revealed that overall group sales rose 14.3% at constant exchange rates in the quarter to December 31. They attributed the rise in sales to good passenger numbers in the air sector and an increase in rail passenger volumes as more commuters returned to office work.

SSP is confident about its future, expecting to see sales go up by 6% to 10% this year. They're happy with how much people are travelling and how business has been since the end of the year, even though strikes have caused some issues.

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They also think they'll make between £210 million and £235 million in profit. A company spokesperson said: "While we face into macroeconomic and political uncertainty, we believe that demand for travel will remain resilient and the industry is well set for both short-term and long-term structural growth."

"The new financial year has started well, with revenue momentum being maintained and inflationary pressures on operating costs being mitigated through our ongoing productivity and pricing initiatives." The company's shares went up by 3% on Tuesday morning.

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Lawrence Matheson