First Quarter Trading Update

RNS Number : 1396V

SSP Group PLC

26 January 2017

 

                                                                                                 LEI: 213800QGNIWTXFMENJ24

26 January 2017

SSP GROUP PLC

First Quarter Trading Update

SSP ("SSP" or "the Group"), a leading operator of food and beverage outlets in travel locations worldwide, issues its Trading Update for the first quarter of its financial year ending 30 September 2017, covering the period from 1 October to 31 December 2016.

Group

SSP has had a good start to the new financial year and expectations for the full year remain unchanged.

Revenue increased by 4.3% on a constant currency basis, comprising like-for-like sales growth of 2.4% and net contract gains of 1.9%. We completed the initial investment to create a joint venture with Travel Food Services ("TFS") in India in December 2016 and this added a further 1.1% to sales, bringing the total group revenue increase in the first quarter to 5.4%. Total group revenue growth at actual exchange rates was 18.7%. We expect to have acquired the initial 33% stake in TFS in full by the end of February 2017.

Like-for-like sales growth in the UK and Continental Europe has remained positive, driven by increased passenger numbers in the air sector. In North America the positive trends seen in 2016 have continued through the first quarter of 2017. In the Rest of the World, like-for-like sales growth is in line with our expectations. The pipeline of new contracts remains encouraging.

Currency

Trading results from outside the UK are converted into sterling at the average exchange rates for the year. The overall impact on revenue of the movement of foreign currencies (principally the Euro, US Dollar, Swedish Krona and Norwegian Krone) in the first quarter compared to the same period last year was approximately 13%. If the current spot rates were to continue throughout the remainder of FY 2017, we would expect a positive currency impact on full year revenue of approximately 7%. This is, however, a translation impact only.

Outlook
The new financial year has started in line with our expectations and the pipeline of new contracts is encouraging, although it is always difficult to predict the precise timing of the openings of new units. Whilst a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets and our programme of operational improvements.

Annual General Meeting

The Group's Annual General Meeting will be held at 11:00am on 13^th March 2017, at the offices of Freshfields Bruckhaus Deringer LLP, at 65 Fleet Street, London EC4Y 1HT.

CONTACTS:

Investor and analyst enquiries

Sarah John, Director of Investor Relations, SSP Group plc

 [phone]

E-mail: [e-mail]

Media enquiries

Peter Ogden / Lisa Kavanagh

Powerscourt

[phone]

E-mail: [e-mail]

NOTES TO EDITORS

About SSP

SSP is a leading operator of food and beverage brands in travel locations, operating restaurants, bars, cafés, food courts, lounges and convenience stores in airports, train stations, motorway service stations and other leisure locations. With over 50 years of experience, today we have nearly 30,000 employees, serving approximately a million customers every day. We have business at approximately 130 airports and 280 rail stations, and operate approximately 2,000 units in over 30 countries around the world. 

We have an extensive portfolio of approximately 400 international, national and local brands. Among these are local heroes such as MASH in Copenhagen, James Martin Kitchen in London and Hung's Delicacies in Hong Kong. Our range also includes proprietary brands created for the travel sector including Upper Crust, Le Grand Comptoir and Ritazza, as well as international names such as Burger King, Starbucks, Hard Rock Café and YO! Sushi. We also create bespoke concepts such as Five Borough Food Hall in JFK, New York and Walter at Zurich. 

www.foodtravelexperts.com

 

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