Why airport food is big business

SHARES in travel food retailer SSP Group soared after investor appetite was boosted by strong full-year results.

SSP operates food and drink businesses at airports and train stations in the UK and abroad, with Upper Crust and Caffe Ritazza among its brands. It also runs outlets for firms such as Burger King and Starbucks.

The company is run by Kate Swann, who headed WH Smith for ten years until July 2013.

She has been named one of the most powerful women in business and was paid £3.7m in 2014 after SSP floated on the London Stock Exchange.

Profits jumped 38pc year- onyear to £148.7m while revenue grew by 19.5pc to £2.4bn.

Sales were up 3.1pc, driven by strong growth from its new businesses in North America and Asia. Sales in North America leapt by 42pc, compared to just 5pc in the UK and it recently launched a joint venture in India, TFS, which has contributed 2.9pc toward SSP’s revenue since the acquisition ten months ago.

SSP’s shares have soared 190pc since it joined the market in July 2014 and it was the best-performing large stock in European markets yesterday morning, ending the day at 658p, a rise of 8.4pc, or 51p.

Swann said: ‘We have grown our presence across the world, particularly in North America and Asia and we are pleased with the performance of our new business in India. We have invested significant capital in the business this year, our highest to date, and at the same time we are returning cash to shareholders.

‘ The new financial year has started in line with our expectations and, whilst a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets.’