SSP Group plc, a leading operator of food and beverage outlets in travel locations worldwide, announces a pre close trading update, ahead of its financial year ending 30 September 2018, covering the period from 1 July 2018 to 30 September 2018.
Trading in the fourth quarter has been in line with our expectations, with like-for-like sales growth continuing at a similar level to that seen in the third quarter. Our expectations for like-for-like sales growth in the full year remain unchanged at between 2% and 3%. Like-for-like sales growth has been driven largely by increased passenger numbers in the air sector. Trading in the rail sector has remained soft during the year.
Net contract gains for the full year are expected to be around the top end of the previously announced range of 4.5% – 5.0%. Net contract gains have continued to be driven by strong growth in North America and on-going progress in the Rest of the World.
The acquisitions of TFS in India and Stockheim are performing well and are expected to add approximately 1.5% to revenue in the full year.
Outlook
Looking forward, whilst a degree of uncertainty always exists around passenger numbers in the short term, 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. Our estimate of the overall impact on revenue of the movement of foreign currencies (principally the Euro, US Dollar, Swedish Krona, and Norwegian Krone) during the full year 2018 compared to the 2017 average is expected to be just under -2%.
2018 Full Year Results Announcement
The Group’s results for the year ending 30 September 2018 are expected to be released on 21 November 2018.
