Upper Crust owner sees recovery wobble ahead of Coveney taking the reins

The company still expects its revenue and profit margins to broadly return to 2019 levels by 2024

Outgoing Greencore CEO Patrick Coveney is set to take over as SSP chief executive.

The UK foodservice group which outgoing Greencore boss Patrick Coveney is set to join has said it has seen a marked recovery in sales since workers have returned to offices and the workplace commute has resumed in its core market of Britain.

However, it said sales momentum has marginally waned in recent weeks.

SSP — chiefly known for the Upper Crust chain of food outlets — said sales were recovering as people were commuting by train to work again after coronavirus curbs hit travel and slowed growth at its airport and rail station outlets.

SSP, which also runs Burger King and Jamie Oliver chains in travel locations in the UK, said its sales in the latest eight weeks to the end of January were at around 57% of 2019 levels, just before the pandemic hit Europe. 

However, they were down from the nine weeks before that when sales ran at 66% above 2019 levels.

Rail sales

The recent uptick in sales, following the lifting of restrictions in the UK and some European markets, was driven mainly by a rise in the number of rail passengers.

SSP operates in 36 countries, including Ireland where Upper Crust has a presence.

It was announced in November that Mr Coveney would be leaving sandwich and wraps maker Greencore at the end of March, after 14 years in charge, to take up the chief executive role at SSP.

SSP still expects its revenue and profit margins to broadly return to 2019 levels by 2024. 

The company returned to profit in its fourth-quarter ending September 2021. 

It raised £450m (€540m) in a rights issue last April to see it through the pandemic crisis and, this month, fully repaid £300m in UK government Covid financing, leaving it with £630m of available liquidity.

— additional reporting Reuters