𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Upper Crust and Millie’s Cookies owner SSP has launched a review of its Continental European rail division amid falling passenger numbers and increased competition across the region.

The group, which runs food outlets at travel locations such as airports and train stations in countries around the world, said it was considering “all potential options” for the business, with a “wide-ranging” review.

It said: “Since Covid, the slow return of passenger numbers, changing passenger profiles, with leisure travel increasing over commuting, a changing brand portfolio and an increase in food and beverage space and competition across the rail network, have all combined such that we have not delivered adequate returns on our rail investments in Continental Europe.”

SSP added: “This review, to be supported by Alvarez & Marsal, will consider and assess all potential options.

“The board expects to be able to update on this review on or before our interims in May 2026.”

Despite pressure on the European rail arm, the group said underlying pre-tax profits rose 8% to £193 million in the year to September 30 as revenues lifted 6% to £3.6 billion.

It also upped its outlook for profitability in the new financial year, with shares soaring 15% in morning trading on Thursday.

Patrick Coveney, group chief executive of SSP, said: “As a result of our actions in the year including an ongoing focus on cost efficiency, we saw strong trading across three of our four regions.

“However, we acknowledge there is more to do to strengthen our operational performance, most notably in Continental Europe where we have now reset our team, model and balance sheet, and have a range of initiatives under way to do so.

“In addition, we are announcing today the launch of a wide-ranging review of our rail business in Continental Europe.”

He added: “We have made an encouraging start to 2025-26 with like-for-like sales growth now positive in all regions and tracking at 4% year-to-date for the group as a whole.

“This early momentum, together with the specific actions that we are taking to deliver sustained improvements in profit, cash and return on capital, gives us increasing confidence in our prospects for the coming year.”

It said recent trading had picked up from 2% growth in like-for-like sales in the final six months of 2024-25.

In the UK and Ireland, it saw like-for-like growth of 7% in the past year, with growth helped by new contract wins in Bournemouth, Exeter and Southampton airports.

The group flagged a trend towards experience-led concepts, such as the Shelby & Co outlet at Birmingham Airport, which is a Peaky Blinders-inspired restaurant with 1920s decor and themed dishes.