Upper Crust owner SSP Group plc expects sales to remain depressed after slumping

() said it sales to remain depressed after slumping to a full-year loss.

The operator of food outlets in train stations and airports estimates sales in the quarter to December 31 to remain broadly in line with the summer quarter, around 80% down compared to 2019.

Following the brief recovery of the travel sector during the summer, the FTSE 250 group reopened over one-third of its units globally but it suffered further volatility after countries reimposed restrictions in October and November.

This volatility is expected to continue through the second quarter of the new financial year, however the firm hopes to see an improvement as demand for travel returns alongside the rollout of COVID-19 vaccines.

Meanwhile, the Upper Crust owner is burning £25-30mln each month.

In the year to September 30, revenue plummeted 49% to £1.4bn, while last year’s underlying profit before tax of £203mln turned into a £315mln loss.

Net debt swelled 43% to £2bn while at the end of the period, SSP Group had £520mln of available liquidity, including cash of £185mln and committed undrawn revolving credit facilities of £150mln, as well as a further £175mln available under the ‘s Covid Corporate Financing Facility.

“The shares have rallied 60% over the last 3 months but remain 50% below pre-Covid price of circa 680p,” analysts at Liberum commented.

“Visibility remains poor but we expect a rapid rebound in leisure travel when the vaccine is rolled out and restrictions are lifted.”

Shares shed 4% to 312.32p on Thursday morning.

–Adds analyst comment, shares–