SSP GROUP PLC
Results for six months period ended 31 March 2018
SSP Group, a leading operator of food and beverage outlets in travel locations worldwide, announces its financial results for the first half of its 2018 financial year, covering the six months ended 31 March 2018.
Highlights:
- Underlying operating profit1 of £55.2m: up 32.6% at constant currency2, and 29.0% at actual exchange rates
- Revenue of £1,177.8m: up 11.9% at constant currency; 9.8% at actual exchange rates
- Like-for-like sales3 up 2.8%: driven by air passenger travel and retail initiatives
- Net gains4 of 7.1%: strong performances in North America and the Rest of the World
- Acquisitions5 of TFS in India and Stockheim in Germany added 2.0% to revenue
- Underlying operating margin1 (excluding the acquisition impact of TFS) up 50 basis points at constant currency, strategic initiatives delivering well. Including the impact of acquisitions, the combined group underlying operating margin increased a further 20 bps to 4.7%
- Underlying profit before tax1 of £48.7m: up 40.3%. Reported profit before tax of £48.4m
- Underlying earnings per share1 of 5.6 pence: up 33.3%. Reported earnings per share of 5.6 pence
- Interim dividend of 4.8 pence per share, up 50.0%. This follows the completion of the c.£100m special dividend and share consolidation, in April 2018
- Encouraging pipeline of new contracts
Commenting on the results, Kate Swann, CEO of SSP Group, said:
“SSP has delivered another strong performance in the first half of 2018. Operating profit was up 32.6% at constant currency, driven by good like-for-like sales growth, significant new contract openings and further operational improvements. We have continued to grow our presence across the world, particularly in North America and Asia and our new business in India is performing well.
Looking forward, the second half has started in line with our expectations and 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 and our programme of operational improvements.”
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1 Stated on an underlying basis which excludes the revaluation of the obligation to acquire an additional 16% ownership share of TFS by the end of calendar year 2018 and the amortisation of intangible assets arising on the acquisition of the SSP business in 2006. In the prior period the underlying basis only excluded the amortisation of intangible assets arising on the acquisition of the SSP business in 2006.
2 Constant currency is based on average 2017 exchange rates weighted over the financial year by 2017 results.
3 Like-for-like sales represent revenues generated in an equivalent period in each financial period in outlets which have been open for a minimum of 12 months. Like-for-like sales are presented on a constant currency basis.
4 Net contract gains/(losses) represent the net year-on-year revenue impact from new outlets opened and existing units closed in the past 12 months. Net contract gains/(losses) are presented on a constant currency basis.
5 Acquisition impact represents the revenue impact from acquired outlets owned for less than 12 months. Acquisition impact is presented on a constant currency basis. Once the acquisition annualises revenue is included in like-for-like sales or net contract gains where appropriate.
6 Stated on an underlying basis1 after capital expenditure, net cash flows to/from associates and non-controlling interests, acquisitions and tax.
