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.
