Upper Crust owner SSP Group has maintained its full-year expectations after stronger trading across its UK and Ireland business helped offset disruption caused by the conflict in the Middle East.

The travel food and convenience operator reported a four per cent year-on-year increase in group sales at constant currency during the three months to 30 June. Like-for-like sales also rose four per cent.

SSP said trading momentum had continued across three of its four operating regions, although a sharp decline in passenger numbers across the Gulf and other connected travel hubs held back its overall performance.

UK and Ireland like-for-likes rise 11 per cent

The UK and Ireland was SSP’s strongest-performing region during the quarter, with like-for-like sales climbing 11 per cent.

Total regional sales increased eight per cent year on year after accounting for changes to SSP’s estate.

The company attributed the performance to seasonal travel demand, improvements to its customer proposition and stronger operational delivery across its airport and railway station locations.

Trading also received a modest benefit from comparison with the disruption caused by last year’s cyberattack at Marks & Spencer. SSP operates M&S Simply Food stores at a number of UK travel locations, alongside brands including Upper Crust, Starbucks, Burger King, Café Local and Millie’s Cookies.

The figures underline the continued importance of convenience retail to SSP’s UK operation, where travellers use its stores for food-to-go, drinks, snacks and grocery essentials.

The business has invested in refreshing its M&S Simply Food estate and other food and beverage formats as it looks to capture greater spending from commuters, holidaymakers and business passengers.

Its third-quarter performance followed an eight per cent rise in like-for-like UK and Ireland sales during the first half of its financial year, when strong airport trading and investment in its M&S stores supported growth.

Middle East conflict hits passenger numbers

Stronger UK trading helped counter a weaker performance across SSP’s Asia-Pacific, Eastern Mediterranean and Middle East division.

Like-for-like sales across the region fell two per cent during the quarter and slowed by 10 percentage points compared with the previous three months.

SSP said the conflict in the Middle East had reduced local and connecting passenger numbers across the Gulf and several major international travel hubs.

Its Gulf operations traded at approximately 65 per cent of the prior year’s level during the quarter, equivalent to a 35 per cent like-for-like decline.

The impact spread beyond SSP’s directly affected Gulf locations, with fewer connecting passengers contributing to weaker-than-planned growth of three per cent in the Eastern Mediterranean and two per cent across Asia-Pacific.

Despite the like-for-like decline, total sales across the combined region increased five per cent at constant currency as new openings and contract gains added seven percentage points to its performance.

North America growth slows

North American sales rose four per cent at constant currency during the quarter, including like-for-like growth of two per cent.

SSP said passenger numbers became more subdued towards the end of the period, although changes to its food and drink offer supported trading.

New restaurants opened within airports where the group already operates contributed a further two per cent to regional sales.

Continental European revenue was flat year on year, with two per cent like-for-like growth offset by SSP’s staged withdrawal from its German motorway service-area operation.

The group is continuing to implement an improvement plan across continental Europe, where profitability has lagged behind its other regions.

It is also progressing measures identified through a review of its European railway station business, which has faced weaker passenger volumes and difficult contract economics in parts of the region.

SSP holds full-year targets

For the nine months to 30 June, group sales increased five per cent at constant currency, including like-for-like growth of five per cent.

SSP said its performance remained in line with expectations, despite uncertainty surrounding passenger numbers in the Gulf and neighbouring markets.

The company maintained its full-year earnings-per-share forecast of between 13.6p and 14.8p, which accounts for the impact of its share-buyback programme.

It also continues to target free cash flow of more than £100m before dividends and share repurchases, alongside further progress towards its medium-term return-on-capital target of 20 per cent.

The business warned that foreign-exchange movements could provide a 0.3 per cent benefit to annual revenue but reduce operating profit by approximately 1.6 per cent, assuming exchange rates recorded on 22 July continue for the remainder of the year.

SSP has completed £76m of the £100m share-buyback programme it launched in October 2025.

First-half profit rises

The update follows SSP’s resilient first-half performance, when revenue rose 6.2 per cent to £1.76bn.

Underlying operating profit increased 17.8 per cent to £50m, while its operating margin improved by 30 basis points to 2.8 per cent.

The group’s UK and Ireland division delivered underlying operating profit of £27.4m during the six-month period.

SSP’s Focus 26 strategy is centred on raising margins, generating stronger cash flow and improving returns from its portfolio.

The company operates more than 3,000 food and drink outlets across 38 countries and employs approximately 49,000 people. Its formats range from cafés and takeaway counters to bars, restaurants, airport lounges and food-led convenience stores.

SSP is scheduled to publish its results for the year ending 30 September on 8 December 2026.

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