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by 2 minutes Read more about* CEO Simon Smith to step down at the end of the year* Company begins hunt for a successor* Sales in the most recent week were 42 percent higher than in 2019. (Includes shares, a comment from an analyst, and some context) 14 JULY (Reuters) – SSP Chief Executive Simon Smith will leave after two years in the post to join a private equity-backed company, the snack food company announced on Wednesday, plunging its shares to the bottom of the UK midcap index. In early trading, shares of the Upper Crust owner plummeted as much as 5.4 percent, with some analysts concerned that the unexpected exit would stymie recovery attempts. SSP’s food stores are primarily located near travel and transit hubs such as airports, making them particularly vulnerable to travel disruptions caused by pandemics. “The timing is bad,” Stifel analyst Mark Irvine-Fortescue said, “as SSP faces a patchy near-term rebound in travel markets… as well as larger structural issues from remote working and decreased commuting and business travel.” SSP had plunged to an 182 million pound ($252 million) loss in the six months ending March, but indicated to recovery as travel resumed after months of shutdown. It said on Wednesday that sales were 42 percent of 2019 levels in the most recent week, compared to 30 percent at the start of June. Smith joined SSP in 2014 as the head of the UK and Ireland area and has been the company’s group CEO since 2019. After SSP purchased a 49 percent stake in India’s Travel Food Services – the company’s largest acquisition to date – he led the integration. Smith did not respond to a request for comment via LinkedIn, and SSP did not specify the firm he will be joining. SSP shares have dropped roughly 52 percent since Smith’s hiring in 2019, trailing a 21 percent growth in the UK midcap index over the same period. They have recovered this year after half in value in 2020. 1 pound = 0.7222 pounds Yadarisa Shabong in Bengaluru contributed to this report. Subhranshu Sahu and Mark Potter edited the piece./nRead More

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