Shares in SSP Group PLC led mid-cap risers in London early Wednesday, after the travel food outlet operator said the second half of its financial year has ‘started well’ and confirmed its annual outlook.

The stock was up 11% to 172.90 pence, far outpacing the wider FTSE 250 index, which was up just 0.3%.

London-based SSP owns brands such as Millie’s Cookies and Upper Crust, and it also operates franchise brands such as M&S Simply Foods, Starbucks and Burger King. The outlets are located in travel centres such as airports and rail stations.

Sales in the third quarter ended June 30 were up 15% on a year before, or 16% at constant currency rates, with like-for-like growth of 6%. For the first nine months of the financial year, which ends on September 30, revenue was up 15%, or 18% at constant exchange rates.

By region, annual sales growth at actual exchange rates in the recent quarter was 25% in North America, 6% in Central Europe, 12% in the UK & Ireland, and 26% in the Asia-Pacific & Eastern Europe Middle East region.

‘Led by an increasing demand for leisure travel, we have seen a strong sales performance across all regions,’ SSP said.

In North America, SSP noted that sales growth included a 14% benefit from the acquisitions of Midfield Concessions and Mack II in the US and ECG in Canada. In the UK, sales were helped by good passenger numbers in the air sector and fewer rail strikes than in 2023.

For the full-year, SSP backed its prior guidance, expecting like-for-like sales growth of between 6% and 10%. It expects annual revenue of £3.4 billion to £3.5 billion, underlying earnings before interest, tax, depreciation and amortisation of £345 million to £375 million, and underlying operating profit of £210 million to £235 million.

These results would compare with revenue of £3.01 billion, underlying Ebitda of £280 million and underlying operating profit of £164 million in financial 2023.

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