SSP in cost-cutting drive amid global uncertainty

Britain's SSP Group SSPG on Tuesday launched a cost-cutting drive and a turnaround plan to revive profitability of its food outlet operations in continental Europe, its largest market.

As part of plans to boost margins and returns in fiscal year 2026, the owner of Upper Crust, is reviewing its Italian operations and potentially exiting loss-making contracts, it added.

The company did not say how much it plans to cut costs, but outlined plans for capital spending of less than 230 million pounds this year and 200 million pounds in fiscal 2026.

Elsewhere, looming uncertainties from U.S. tariffs have hit global companies across sectors, and has led to a slump in air travel demand, which is denting growth prospects for companies such as SSP, which operates food outlets at airports.

"Recent geopolitical events have led to a heightened level of uncertainty across some of our travel markets, in particular in North America," the company said in a statement.

SSP's North America like-for-like sales dropped 2% for the six months ended March 31.

Panmure Liberum analysts said the cost reduction programme, capital expenditure cuts, and strong cash generation may enable a share buyback in the second half this year.

Shares in the firm, which runs Starbucks SBUX in London's Heathrow airport, rose 2.3% at 171 pence.

It pushed back plans for its initial public offering in India for its Travel Food Services business to the summer of 2025, from an earlier target in the spring.

SSP's core earnings for the half-year rose 8% to 114 million pounds ($152.40 million). It kept its 2025 guidance unchanged.

($1 = 0.7481 pounds)