TEMPUS

Investors applaud recipe for success

Trimming down the size of baguettes has helped to improve margins
Trimming down the size of baguettes has helped to improve margins
TIMES PHOTOGRAPHER RICHARD POHLE

SSP

Market value £3.2bn | Net debt £262m | Earnings 20.3p

While Kate Swann was running WH Smith, she gained a reputation as a ruthless and effective cost-cutter. Since leaving to take the helm at SSP in 2013, she has put into practice a similarly pragmatic approach, famously slicing an inch off the baguettes sold at its Upper Crust and Caffè Ritazza outlets and instructing staff to cut the number of teabags in a large tea from two to one.

Such moves might appear penny-pinching, not to say slightly absurd, but they can do wonders for margins in a low-margin business and those pinched pennies can soon add up in a company operating 2,500 outlets at hundreds of airports and railway stations in more than