Strong Pound Sterling impact hits SSP Group sales

UK's SSP Group stated (07-Aug-2014) sales declined 1.4% year-on-year between 01-Apr-2014 to 30-Jun-2014, with the results impacted by the strong Pound Sterling, with sales on a constant currency basis up by 3.5% and like-for-like up 3.3%. During the year Sterling has strengthened against many of the key currencies in which SSP trades (including the Euro, Norwegian Krone, Swedish Krona and the US Dollar). Like-for-like sales growth continued to benefit from strong performances in the UK, North America and Asia Pacific regions, said SSP, with "challenging trading" in continental Europe, most notably in France. During the period, the group opened its first outlets in Qatar as part of a contract to operate 11 F&B outlets at the new Hamad International Airport in Doha. SSP also recently won a number of new contracts, including a GBP135 million seven year contract at London Stansted Airport and a USD80 million ten-year contract at Sacramento Airport. SSP Group said that it is benefiting from good passenger growth in its core travel markets, although "uncertainty continues in some smaller markets as a result of local political instability and its impact on tourism". The group said its trading performance during the period and financial position was in line with management's expectations at the time of the recent IPO. CEO Kate Swann said: "I am pleased to announce our first IMS as a listed company. During the period we saw a strong performance for the group, particularly in the UK, North America and Asia Pacific. We continue to be confident in the outlook for the business." [more - original PR]