Third Quarter Trading Update

RNS Number : 5709T

SSP Group PLC

21 July 2015

 



21 July 2015

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 2015, covering the period from 1 April 2015 to 30 June 2015.

Trading in the third quarter of the 2015 financial year

The Group's overall performance in the third quarter was good, and trading was consistent with the expectations set out in our 2015 interim results announcement.

On a constant currency basis, total Group revenues for the period from 1 April 2015 to 30 June 2015 increased by 4.1%, with like-for-like sales growth of 3.2%, compared with the same period last year. At actual currency rates, given the strengthening of Sterling against major European currencies compared with the prior year, total Group revenues decreased by 0.1% year-on-year.

Like-for-like sales in the third quarter continued to benefit from good growth in the UK, benefiting from strong passenger growth in the air sector, and in North America, driven by the performance of Terminal 4 at New York JFK airport (where additional Delta passengers were transferred into the terminal). The Rest of the World division (which includes Eastern Europe, Middle East and Asia Pacific) also delivered healthy like-for-like sales growth, and is seeing similarly strong trends in passenger numbers across most of the region.  In Continental Europe, we continued to experience a more challenging trading environment, notably in France and Germany.

Net gains were 0.9%, which was stronger than in the first half, as we indicated at our interim results.

Outlook

The outlook for the Group remains unchanged from that outlined in our 2015 interim results.  While, as always, a degree of uncertainty exists around passenger numbers in the short-term, the Group remains well positioned to capitalise on the underlying positive trends in its markets.

Currency

Trading results from our overseas operations are converted at average foreign exchange rates over the year. In comparison with last year, Sterling has strengthened against many of our key currencies (including the Euro, Norwegian Krone and the Swedish Krona). Currency movements have a translation impact only.  If foreign exchange rates remain unchanged for the rest of the Group's 2015 financial year, total Group revenue growth for the 2015 financial year on an actual currency basis would be approximately 4% lower than on a constant currency basis.

Revenues for the first nine months of the 2015 financial year

For the nine month period from 1 October 2014 to 30 June 2015, total Group revenues increased by 3.1% on a constant currency basis, with like-for-like sales growth of 3.1%, compared with the same period last year. At actual currency rates, given the strengthening of Sterling compared with the prior year, total Group revenues over the same period decreased by 0.5% year-on-year.

2015 full year results announcement

The Group's results for the year ending 30 September 2015 are expected to be released on 26 November 2015.

CONTACTS

Investor and analyst enquiries

Charles King, Director of Investor Relations, SSP Group plc

[phone]; E-mail: [e-mail]

Media enquiries

Jenni Field, Head of Communications, SSP Group plc

[phone]; E-mail: [e-mail]

Rory Godson / Rob Greening / 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 a heritage stretching back over 60 years, today SSP has nearly 30,000 employees, serving approximately a million customers every day. It has business at circa 130 airports and circa 270 rail stations, and operates approximately 2,000 units in 29 countries around the world.

SSP operates an extensive portfolio of approximately 500 international, national, and local brands. These include Upper Crust, Starbucks, Caffè Ritazza, Burger King, M&S Simply Food, Caviar House & Prunier, Millie's Cookies, and YO! Sushi, as well as stunning bespoke concepts such as the Montreux Jazz Café, Café Deco in Hong Kong and Shanghai, and the award winning Center Bar at Zurich.

www.foodtravelexperts.com

 

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