SSP Group PLC First Quarter Trading Update (3835A)
21 Gennaio 2020 - 08:00AM
UK Regulatory
TIDMSSPG
RNS Number : 3835A
SSP Group PLC
21 January 2020
LEI:213800QGNIWTXFMENJ24
21 January 2020
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 2020, covering the period from 1 October to 31 December
2019.
Group
SSP has had a good start to the new financial year with further
encouraging progress on its strategic initiatives and unchanged
profit expectations for the full year. Total group revenue in the
first quarter increased by 7.5% on a constant currency basis,
comprising like-for-like sales growth of 1.2% and net contract
gains of 6.3%. Total group revenue growth at actual exchange rates
was 6.1%.
Overall like-for-like sales growth was in line with our
expectations, with the external headwinds noted in the second half
of last year continuing, as anticipated, into the first quarter of
this year. Like-for-like sales growth in the UK and North America
remained robust, driven by increasing passenger numbers.
Like-for-like sales in Continental Europe have been affected by the
transport strikes across France during December. Like-for-like
sales growth in the Rest of the World included, as expected, a full
quarter's impact of the disruption in Hong Kong, but benefitted
from an improving trend in India. Looking forward to the full year,
our expectation for like-for-like sales growth for the Group
remains unchanged, at just below 2%.
Net contract gains remained strong in the first quarter, at
6.3%, driven by the significant new contract openings last year,
including: in Continental Europe, at Montparnasse Railway station,
the new motorway service stations in Germany and the Starbucks
units in railway stations across the Netherlands; in North America,
at Seattle, Oakland and LaGuardia Airports; and in the Rest of the
World, at Cebu Airport in the Philippines and Bangalore Airport in
India. The pipeline of new contracts remains encouraging.
Following the recent announcement of the acquisition of Red
Rock's operations in Perth and Melbourne Airports in Australia, we
are today announcing the proposed acquisition of Station Food GmbH
in Germany. Once fully operational in 2021, Station Food will add
28 new food and beverage units at railway stations in Germany and
is expected to contribute approximately GBP10m to SSP's revenue in
2020. Including this acquisition, our expectations for net gains
for the full year have increased to around 5%.
Outlook
Looking forward to the full year, we remain confident of
delivering another year of strong growth, in line with our
expectations. Whilst a degree of uncertainty always exists around
passenger numbers in the short term, we 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 quarter of 2020 compared to the 2019 average was -1.4%. If
the current spot rates were to continue for the rest of 2020, our
expectation of the full year translation impact on revenue remains
unchanged at approximately -2%.
Annual General Meeting
The Group's Annual General Meeting will be held at 11:00am on 26
February 2020, 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
+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 more than 39,000 employees,
serving approximately one and a half million customers every day.
We have business at approximately 180 airports and 300 rail
stations, and operate more than 2,800 units in 35 countries around
the world.
SSP operates an extensive portfolio of more than 550
international, national, and local brands. Among these are local
heroes such as Brioche Doree in Paris, LEON in London, and Hung's
Delicacies in Hong Kong. Our range also includes proprietary brands
created for the travel sector including Upper Crust, Cabin Bar and
Ritazza, as well as international names such as M&S, Burger
King, Starbucks, Jamie's Deli and YO! Sushi. We also create
stunning bespoke concepts such as Five Borough Food Hall in JFK,
New York and Norgesglasset Bar in Oslo Airport.
www.foodtravelexperts.com
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