LONDON, 2016-Feb-01 — /EPR Retail News/ — SSP (“SSP” or “the Group”), a leading operator of food and beverage outlets in travel locations worldwide, issues an Interim Management Statement for the first quarter of its financial year ending 30 September 2016, covering the period from 1 October to 31 December 2015.
Group
SSP has had a good start to the new financial year and expectations for the full year remain positive and unchanged.
Total revenue increased by 6.2% on a constant currency basis, comprising like-for-like sales growth of 4.3% and net contract gains of 1.9%, in line with our expectations. Total revenue growth at actual exchange rates was 1.9%.
Like-for-like sales grew strongly in the UK and Continental Europe in the early part of the new financial year. This has moderated slightly in recent weeks reflecting the impact of geopolitical activity. In North America the positive trends in like-for-like sales growth in 2015 have continued throughout the first quarter of 2016. In the Rest of the World, like-for-like sales growth is in line with expectations, although trading in Egypt remains challenging due to the fall in passenger numbers. The pipeline of new contracts remains encouraging.
Currency
Trading results from outside the UK are converted into sterling at the average exchange rates for the year. The overall impact on revenue of the movement of foreign currencies (principally the Euro, US Dollar, Swedish and Norwegian Krone) in the first quarter compared to the same period in 2014 was -4.3%. If the current spot rates were to continue throughout the remainder of FY 2016, we would expect a positive currency impact on full year revenue of 0.4%. This is however a translation impact only.
Outlook
The new financial year has started in line with our expectations and the pipeline of new contracts is encouraging, although it is difficult to predict the precise timing of the openings of new units. Whilst a degree of uncertainty always exists around geopolitical events and passenger numbers in the short term, the geographical and sectoral diversity of our business, together with the significant structural growth opportunities and our programme to deliver operational improvements, leave us well placed to continue to deliver for both our customers and our shareholders.
Annual General Meeting
The Group’s Annual General Meeting will be held at 11:00am on 4 March 2016, at the offices of Freshfields Bruckhaus Deringer LLP, at 65 Fleet Street, London EC4Y 1HT.
SOURCE: SSP Group plc
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