SSP Group PLC Third Quarter Trading Update (7703K)
July 12 2017 - 1:00AM
UK Regulatory
TIDMSSPG
RNS Number : 7703K
SSP Group PLC
12 July 2017
12 July 2017
Third Quarter Trading Update
SSP Group plc, a leading operator of food and beverage outlets
in travel locations worldwide, announces its trading update for the
third quarter of its financial year ending 30 September 2017,
covering the period from 1 April 2017 to 30 June 2017.
On a constant currency basis, total Group revenues for the
period from 1 April 2017 to 30 June 2017 increased by 14.6%, with
like-for-like sales growth of 3.6%, net contract gains of 7.6% and
an additional 3.4% of revenue from Travel Food Services in India
("TFS"), compared with the same period last year. At actual
exchange rates, given the weakening of Sterling against most
currencies compared with the same period in the prior year, total
Group revenues for the period increased 21.7% year-on-year.
Like-for-like sales in the third quarter increased by 3.6%,
which included a positive benefit arising from the timing of
Easter. Like-for-like sales growth in the air sector was driven by
increased passenger numbers. Trading in the rail sector has
remained softer. More recently, we have seen some further impact
from the geopolitical activity in the UK and Continental
Europe.
Net contract gains in the third quarter were 7.6%. This
performance benefited from the commencement of operations at
Chicago Midway airport, ahead of plan. On a temporary basis we are
running all the food and beverage operations in Midway until
re-development commences. In addition to this, we have benefited
from the deferral of some planned unit closures in the quarter.
Looking forward, we expect net contract gains for the full year to
be around 5.0% - 5.5%. The anticipated operating profit
contribution from new unit openings will, as normal, include the
impact of pre-opening costs.
TFS has continued to perform well in the quarter, with strong
sales, a little ahead of our expectations.
For the nine month period from 1 October 2016 to 30 June 2017,
total Group revenues increased by 10.4% on a constant currency
basis, including like-for-like sales growth of 3.2%, net contract
gains of 4.8%, revenues from TFS of 2.8% and a negative impact of
-0.4% arising from the additional leap year day in 2016. At actual
exchange rates, total Group revenues increased 20.4%
year-on-year.
Outlook
Looking forward, whilst a degree of uncertainty always exists
around passenger numbers in the short term, particularly in the
current environment, we are well placed to continue to benefit from
the structural growth opportunities in our markets and to create
further shareholder value.
Currency
Trading results from outside the UK are converted into Sterling
at the average exchange rates for the period. The overall impact on
revenue of the movement of foreign currencies (principally the
Euro, US Dollar, Swedish Krona, and Norwegian Krone) during the
first three quarters of 2017 compared to the 2016 average was
10.0%. If the current spot rates were to continue for the rest of
2017, we would expect a positive effect for the full year of around
7.0%.
2017 full year results announcement
The Group's results for the year ending 30 September 2017 are
expected to be released on 22 November 2017.
CONTACTS
Investor and analyst enquiries
Sarah John, Director of Investor Relations, SSP Group plc
+44 (0) 203 714 5251; E-mail: sarah.john@ssp-intl.com
Media enquiries
Peter Ogden / Lisa Kavanagh, Powerscourt
+44 (0) 207 250 1446; E-mail: ssp@powerscourt-group.com
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 30,000 employees, serving
approximately a million customers every day. We have business at
approximately 140 airports and 280 rail stations, and operate more
than 2,200 units in over 30 countries around the world.
SSP operates an extensive portfolio of more than 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 stunning bespoke concepts such as Five Borough Food
Hall in JFK, New York and Walter at Zurich.
www.foodtravelexperts.com
This information is provided by RNS
The company news service from the London Stock Exchange
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