SSP to tap shareholders for £475m as Upper Crust owners waits for travel restrictions to ease

SSP, the operator of cafes and restaurants at airports and train stations, is to tap shareholders for £475 million in a move to give it more breathing space while travel restrictions remain in place.

The FTSE 250 company behind brands such as Upper Crust and Ritazza added that alongside and conditional upon the rights issue, it has secured the extension of bank loans that were due to mature in 2022 and 2024.

SSP said: “These measures will protect the business if the global travel sector experiences a more prolonged recovery from the pandemic, whilst under SSP's base case scenario, they will strengthen the group's balance sheet and provide increased capacity for investment as the travel market recovers.”

The firm saw sales slump last year, down 47.9% to £1.4 billion in the 12 months to September, as work from home guidance and international travel restrictions saw footfall at stations and airports drastically reduce.

The group temporarily shut the vast majority of its estate during lockdowns.

It expects a near full return of passenger numbers to pre Covid levels by 2024, led by a rebound in domestic and leisure short-haul air and rail travel.