SSP Group reports good start to FY2017, with strong positive currency effects

SSP Group issued (26-Jan-2017) a trading update for Q1FY2017 (three months to 31-Dec-2016):

• Group Outlook: SSP has had a good start to FY2017 and expectations for the full year remain unchanged. A degree of uncertainty always exists around passenger numbers in the short term, SSP continues to be well placed to benefit from the structural growth opportunities in our markets and its own programme of operational improvements;
• Revenue: +4.3% year-on-year;
• • Organic sales growth: 2.4%;
  • Net contract gains of 1.9%;
  • Travel Food Services: Initial investment to create a JV with Travel Food Services (TFS) in Dec-2016. JV added 1.1% to sales, bringing total group revenue growth to 5.4%. SSP expects to have acquired the initial 33% stake in TFS in full by the end of Feb-2017;
  • Revenue at constant currency: +18.7%. Impact on revenue of the movement of foreign currencies (principally the Euro, US Dollar, Swedish Krona and Norwegian Krone) in 1Q2017 was approximately +13%. If the current spot rates were to continue throughout the remainder of FY 2017, SSP would expect a positive currency impact on full year revenue of approximately 7%. This is, however, a translation impact only;
• UK and Continental Europe: Trading has remained positive, driven by increased passenger numbers in the air sector;
• North America: Positive trends seen in FY2016 have continued through 1QFY2017;
• Rest of the World: Like-for-like sales growth is in line with expectations. The pipeline of new contracts remains encouraging. [more - original PR]