Investor Alert

London Markets

Sept. 29, 2021, 9:03 a.m. EDT

Airport restaurant operator SSP stumbles on warning

By Steve Goldstein

Shares of airport and train station restaurant operator SSP Group stumbled on Wednesday after warning of a slightly slower recovery in sales in the current fiscal year.

SSP (LON:UK:SSPG) shares fell as much as 6% after the warning, which followed a fourth quarter ending Sept. 30 period in which revenue reached 47% of 2019 levels. SSP says it’s reopened about 60% of its outlets, up from 30% at the end of the first half.

The operator of restaurants at John F. Kennedy Airport, Los Angeles International Airport and Boston Logan International Airport said a return to profitability on an underlying earnings before interest, tax, depreciation and amortization basis will depend not just on the pace of the recovery, but also on higher input cost inflation, the impact of labor availability and the extent of government support programs.

The FTSE 100 (FTSE:UK:UKX) rose 1% to 7,097.07, joining the global recovery after Tuesday’s selloff.

AstraZeneca (LON:UK:AZN) led the way with a 3.5% advance, while retailer Next (LON:UK:NXT) added 3%, after the second upgrade to sales guidance since July.

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