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SSP Group Sees Strong Recovery In Q4 Revenues, Lifts FY22 Outlook; Says Confident In FY23

SSP Group PLC (SSPG.L), an operator of food and beverage outlets in travel locations, Tuesday said strong recovery in its performance continues during the fourth quarter, with revenues expected to be around 91 percent of 2019 levels.

For the current full year, the company now expects to deliver sales of approximately 2.17 billion pounds and EBITDA of around 140 million pounds, on a pre-IFRS 16 basis, slightly ahead of our previous full year guidance.

In its pre-close trading update for the fourth quarter to September 30, SSP Group said the results were driven by a continued recovery of passenger numbers, despite some disruption to the travel sector over the summer.

The revenue performance includes the benefit from net contract gains and price increases compared to the same period in 2019.

The company is experiencing recovery in domestic and leisure travel across both the Air and Rail sectors, along with more slowly recovery in business and commuter travel.

In the fourth quarter, a recovery in trading is being reported across all regions.

The company's results for the year 2022 are expected to be released on December 6.

Further, SSP Group said is now planning to accelerate the mobilisation of pipeline from 2023 onwards. As previously reported, by 2025 its pipeline of new outlets is expected to add around 500 million pounds to revenues compared to 2019.

Looking ahead to the 2023 financial year, the company said travel demand has recovered strongly, and that it confident to continue to offset cost inflation, manage supply chain and labour volatility, and optimise profitability and returns.

Medium-term expectations for the recovery remain unchanged, which are for a return to broadly pre Covid-19 levels of LFL revenue and EBITDA on a pre-IFRS 16 basis by 2024.

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