MARKET REPORT: Upper Crust owner rises as travellers boost profits

Shares of SSP, which owns Upper Crust, soared after it returned to profit and cashed in on a return of passengers flying through the air and hopping on trains.

The FTSE 250 group, which also owns Millie’s Cookies, made a profit of £15.8m in the six months to the end of March, after a loss of £2.3m in the same period a year ago.

And revenue of £1.3 billion was 64.1 per cent higher than 12 months earlier, the company said.

SSP praised strong demand in North America, where sales were above pre-pandemic levels, while the recovery in the UK was hampered by rail strikes.

The aviation industry ground to a halt during the pandemic as strict Covid measures took their toll.

But with SSP encouraged by the recovery pace of passengers traveling again, it now expects its revenue and profit for the year through the end of September to be at the top end of forecasts.

The group added that sales in the first six weeks of the second half of the fiscal year were up 11 percent on 2019 as holidaymakers prepare for summer.

The company also partnered with Brewdog to bring craft brew pubs to train stations and airports across the UK this year, starting with Gatwick.

Shares gained 3.1 percent, or 8.2 pence, to 272.4 pence.

The FTSE 100 fell 0.1 percent, or 8.04 points, to 7762.95 and the FTSE 250 lost 0.3 percent, or 65.03 points, to 19208.31.

Blue-chip property landlords rallied in hopes of a recovery in property values.

British Land gained 2.6 percent, or 9.3 pence, to 365.7 pence, Land Securities rose 0.8 percent, or 4.8 pence, to 636.2 pence, Segro added 1.3 percent, or 10, 2 pence to 825.2 pence and Hammerson grew 2.3 percent, or 0.58 p, to 26.02 p.

Stock watch – Watkin Jones

Watkin Jones fell to an all-time low after the housing developer warned that profits of around £15m will be delayed to the next financial year.

Difficult market conditions have led the group to opt not to “promote pipeline assets onto our balance sheet more quickly to get them ready for sale.”

Sales fell by a fifth to £153.9m in the six months to the end of March after no new forward sales were completed.

Shares, which floated at 100p in March 2016, fell 20.3 percent, or 19.6p, to 76.8p.

RS Group took a hit after warning that trading had been weaker since April.

Shares of the electronics distributor fell 7 percent, or 59.6 pence, to 793.2 pence.

Analysts at Jefferies said private equity predators could now target the company after its CEO, chief financial officer, chief operating officer and head of North America all left within a year.

Retail shares plunged into the red, with B&M losing 5 percent, or 24.3 pence, to 465.7 pence, Next 1.3 percent, or 86 pence, to 6,554 pence, and Frasers Group falling 4.2 percent, or 31.5 pence to 717 pence.

Liberum analyst Joachim Klement said traders are concerned that inflation will remain elevated for longer despite expected declines.

Dowlais, the engineering group that spun out of Melrose last month (-0.5 percent, or 2.6 pence, to 477.9 pence), cheered after sales jumped 9 percent to £477.9 in the first four months of the year 1.9 billion.

While sales in the automotive division increased by 11 percent, sales remained stable year-over-year in the energy metallurgy business.

Despite this, the company reiterated its 2023 forecasts. Shares fell 7.4 percent, or 10.6 pence, to 132.9 pence.

News of South West Water’s water regulator Ofwat’s investigation into leaks and usage data saw shares in Pennon, the owner of the utility, fall 2.7 percent, or 22 pence, to 800 pence.

Drax plans to enter the US market as it appears to be taking advantage of President Biden’s green energy tax breaks.

The power generation group – which said the US had created a “supportive investment climate” following the Inflation Reduction Act – revealed it planned to build two power stations in the southern US, estimated to cost £3.2bn and would start commercial activities in 2030. .

Shares gained 2.2 percent, or 13.4p, to 635p.

Cranswick, one of Britain’s largest food producers, reported higher annual profits and sales despite being hit by labor shortages across the sector. Shares rose 5.4 percent, or 170 pence, to 3,310 pence.