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 2016, covering the period from 1 April 2016 to 30 June 2016.
The Group’s overall performance in the third quarter was in line with the expectations set out in our 2016 interim results announcement. On a constant currency basis, total Group revenues for the period from 1 April 2016 to 30 June 2016 increased by 4.8%, with like-for-like sales growth of 3.0% and net contract gains of 1.8%, compared with the same period last year. At actual exchange rates, given the weakening of Sterling against major European currencies compared with the same period in the prior year, total Group revenues increased 9.0% year-on-year.
Like-for-like sales in the third quarter in the UK were robust and continue to benefit from passenger growth in the air sector. In Continental Europe the picture remains mixed, with good performances in Spain and a weaker trading environment in France and Belgium resulting from the on-going impact of the geopolitical incidents in Paris and Brussels and industrial action. In North America, good like-for-like sales growth is being driven by passenger growth in the air sector. In the Rest of the World, like-for-like sales continue to be impacted by the fall in passenger numbers in Egypt and the on-going slowdown in passenger growth in China.
For the nine month period from 1 October 2015 to 30 June 2016, total Group revenues increased by 5.5% on a constant currency basis, including like-for-like sales growth of 3.2%, net contract gains of 1.9% and a further 0.4% arising from the additional leap year day. At actual exchange rates, total Group revenues increased 6.0% year-on-year.
Outlook
The second half of the financial year has started in line with our expectations. 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. 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 2016 compared to the 2015 average was +0.5%. If the current spot rates were to continue for the rest of 2016, we would expect a positive effect for the full year of approximately +3.0%.
2016 full year results announcement
The Group’s results for the year ending 30 September 2016 are expected to be released on 29 November 2016.
