SSP reports 14.6% revenue increase in Q3 trading report

12 July 2017 by
SSP reports 14.6% revenue increase in Q3 trading report

Travel caterer SSP Group has reported revenue increase of 14.6% and like-for-like sales growth of 3.6% in its trading update for the period 1 April to 30 June 2017.

The company has also reported net contract gains of 7.6%. At actual exchange rates, given the weakening of sterling against most currencies compared with the same period in the prior year, total group revenues for the period increased 21.7% year-on-year.

The timing of Easter in particular boosted like-for-like sales, while growth in the air sector was driven by increased passenger numbers. Trading in the rail sector has remained softer. The company also reports seeing "some impact" from the geopolitical activity in the UK and continental Europe.

The report said SSP expects net contract gains for the full year to be around 5 - 5.5%. The anticipated operating profit contribution from new unit openings will include the impact of pre-opening costs.

For the nine month period from 1 October 2016 to 30 June 2017, total group revenues increased by 10.4% on a constant currency basis, including like-for-like sales growth of 3.2%, net contract gains of 4.8% and a negative impact of -0.4% arising from the additional leap year day in 2016. At actual exchange rates, total group revenues increased 20.4% year-on-year.

The report read: "Looking forward, whilst a degree of uncertainty always exists around passenger numbers in the short term, particularly in the current environment, we are well placed to continue to benefit from the structural growth opportunities in our markets and to create further shareholder value."

The group recently opened a Leon and its Cabin bar concept at London Paddington station.

SSP reports positive first quarter trading >>

SSP opens Leon and Cabin at London Paddington station >>

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