London / UK. (ssp) SSP Group PLC, a leading operator of food and beverage outlets in travel locations worldwide, announces its financial results for the first half of its 2017 financial year, covering the six months ended 31 March 2017. Highlights:
- Underlying operating profit (1) of 42.8 million GBP: up 24.7 percent at constant currency, and 38.5 percent at actual exchange rates
- Revenue of 1’073 million GBP: up 8.1 percent at constant currency; 19.6 percent at actual exchange rates
- Like-for-like sales up 2.9 percent: driven by air passenger travel and retail initiatives
- Net gains of 3.4 percent: strong performances in North America and the Rest of the World
- Underlying operating margin (1) up 30 basis points at constant currency to 3.7 percent: strategic initiatives delivering well
- TFS joint venture added 2.4 percent to revenue and 3.7 million GBP to operating profit, resulting in a combined group operating margin of 4.0 percent
- Underlying profit before tax of 34.7 million GBP: up 49.6 percent. Reported profit before tax of 33.0 million GBP
- Underlying earnings per share of 4.2 Pence: up 40 percent. Reported earnings per share of 3.8 Pence
- Interim dividend of 3.2 Pence per share, up 28.0 percent
- Encouraging pipeline of new contracts
Chief Executive’s Commentary
Commenting on the results, Kate Swann, CEO of SSP Group, said: «SSP has delivered another good performance in the first half of 2017 and we continue to make progress on our strategic initiatives. Constant currency operating profit was up 25 percent driven by good like-for-like sales growth and further operational improvements. We have had a particularly strong period of new contract openings, growing our presence across the world particularly in North America and the Asia Pacific region. The pipeline is robust and we are pleased with the new contracts won in the first half. Our Joint Venture in India has started well and we are encouraged by the progress we are making there.
«Looking forward, the second half has started in line with our expectations and whilst a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets and our programme of operational improvements».
Financial Highlights
| Year on Year Change | ||||
| H1 2017 | H1 2016 | Constant Currency (2) | Actual FXrates | |
| Revenue | 1’072.5 mio. GBP | 896.7 mio. GBP | +8.1% | +19.6% |
| Like-for-like sales growth (3) | +2.9% | +3.3% | n/a | n/a |
| Underlying operating profit (1) | 42.8 mio. GBP | 30.9 mio. GBP | +24.7% | +38.5% |
| Underlying operating margin (1) | 4.0% | 3.4% | +50 bps | +60 bps |
| Underlying profit before tax (1) | 34.7 mio. GBP | 23.2 mio. GBP | n/a | +49.6% |
| Underlying earnings per share (p) (1) | 4.2 Pence | 3.0 Pence | n/a | +40.0% |
| Dividend per share (p) | 3.2 Pence | 2.5 Pence | n/a | +28.0% |
| Underlying operating cash outflow (4) | (45.1) mio. GBP | (20.3) mio. GBP | n/a | -122.2% |
| Net debt | (378.8) mio. GBP | (374.7) mio. GBP | +4.0% | -1.1% |
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Statutory reported results:
The table below summarises the Group’s statutory reported results (where the financial highlights above are adjusted).
| H1 2017 | H1 2016 | Year on year change | |
| Operating profit | 41.8 mio. GBP | 29.9 mio. GBP | +39.8% |
| Operating margin | 3.9% | 3.3% | +60 bps |
| Profit before tax | 33.0 mio. GBP | 22.2 mio. GBP | +48.6% |
| Earnings per share (p) | 3.8 Pence | 2.9 Pence | +31.0% |
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- Stated on an underlying basis excluding exceptional items and the amortisation of intangible assets arising on the acquisition of the SSP business in 2006. In the current period, exceptional items include the foreign exchange revaluation of the obligation to acquire an additional 16 percent ownership share of TFS in 2018.
- Constant currency is based on average 2016 exchange rates weighted over the financial year by 2016 results. For net debt, constant currency is based on translating H1 2017 net debt at H1 2016 exchange rates.
- Like-for-like sales represent revenues generated in an equivalent period in each financial period in outlets which have been open for a minimum of 12 months. Like-for-like sales are presented on a constant currency basis.
Net contract gains / (losses) represent the net year on year revenue impact from new outlets opened and existing units closed in the past 12 months. Net contract gains / (losses) are presented on a constant currency basis. - Stated on an underlying basis after capital expenditure, net cash flows to/from associates/minorities, acquisitions and tax, and excluding exceptional items.
