First Quarter Trading Update

RNS Number : 5859C

SSP Group PLC

23 January 2018

 

                       LEI: 213800QGNIWTXFMENJ24

23 January 2018

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 2018, covering the period from 1 October to 31 December 2017.

Group

SSP has had a good start to the new financial year and has made encouraging further progress in rolling out its strategic initiatives. Total group revenue increased by 13.5% on a constant currency basis, comprising like-for-like sales growth of 2.7%, net contract gains of 8.1%, and the acquisition of TFS, our joint venture in India, adding a further 2.7% to sales. Total group revenue growth at actual exchange rates was 12.2%.

Like-for-like sales growth in the UK and Continental Europe was in line with expectations, driven by the ongoing roll out of strategic initiatives and increasing passenger numbers. In North America sales were driven by robust passenger growth, although at a number of our airports the impact of changes in airline routes and passenger flows seen in the second half of 2017 has continued into the first quarter. In the Rest of the World (including TFS), we continued to see good like-for-like sales growth. Looking forward to the full year, our expectation for like-for-like sales growth for the Group remains unchanged, at between 2% and 3%.

Net contract gains were driven by significant contributions from North America and the Rest of the World. Looking forward, after a good start in the first quarter, an encouraging pipeline of new contracts and the deferral of redevelopments at some of our airports, we now anticipate net contract gains for the Group, including the impact of TFS, to be approximately 4% for the full year.

On December 1^st, SSP announced that it had agreed to acquire part of the Stockheim group, a business operating food and beverage outlets in airports and railway stations in Germany. The business had sales of approximately €30m in 2016. The acquisition is expected to complete in early 2018.

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 -1.3%. If the current spot rates were to continue throughout the remainder of FY 2018, we would expect a negative currency impact on full year revenue of approximately -1.5%. This is a translational impact only.

Outlook
The new financial year has started well and the pipeline of new contracts is encouraging. 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.  

Annual General Meeting

The Group's Annual General Meeting will be held at 11:00am on 27^th February 2018, at the offices of Travers Smith LLP, at 10 Snow Hill, London EC1A 2AL.

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 concessions 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 35,000 employees, serving approximately a million customers every day. We have business at approximately 140 airports and 280 rail stations, and operate more than 2,500 units in over 30 countries around the world.

SSP operates an extensive portfolio of more than 450 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 stunning bespoke concepts such as Five Borough Food Hall in JFK, New York and Walter at Zurich.

www.foodtravelexperts.com

 

END

 

 

TSTUUABRWNAAUAR