London / UK. (ssp) SSP Group PLC, a leading operator of food and beverage outlets in travel locations worldwide, announces its results for the first half of its 2016 financial year, covering the six months ended 31 March 2016. Highlights:
- Strong results with good progress on last year
- Operating profit of 30.9 million GBP: up 28.0 percent at constant currency, and 22.6 percent at actual exchange rates
- Like-for-like sales up 3.3 percent: driven by growth in air passenger travel and retailing initiatives
- Net gains of 2.0 percent: strong performances in North America and the Rest of the World
- Revenue of 897 million GBP: up 5.9 percent at constant currency; 4.4 percent at actual exchange rates
- Operating margin up 50 basis points to 3.4 percent: strategic initiatives delivering further improvements
- Earnings per share of 3.0 GBPence, up 43 percent
- Interim dividend of 2.5 GBPence per share, up 19 percent
- Brand and concept portfolio further strengthened
- Encouraging pipeline of new contracts
Commenting on the results, Chief Executive Kate Swann said: «SSP has made further good progress in the first half of 2016 and we continue to deliver our strategic initiatives. Constant currency operating profit was up 28 percent driven by good like-for-like sales growth in our existing business, new contract openings, which are building our presence across the world, and further operational improvements. I am particularly encouraged by the pace of development in our North America and Asia Pacific operations. Looking forward, the second half has started in line with our expectations. Whilst a degree of uncertainty always exists around passenger numbers in the short term, we are well placed to benefit from the structural growth opportunities in our markets and to create further shareholder value».
Change between H1/2016 versus H1/2015
| H1/2016 | H1/2015 | Constant Currency | Actual FX Rates | |
| Revenue | 896.7 million GBP | 859.2 million GBP | +5.9 percent | +4.4 percent |
| Like-for-like sales growth | +3.3 percent | +3.0 percent | n/a | n/a |
| Operating profit | 30.9 million GBP | 25.2 million GBP | 28.0 percent | +22.6 percent |
| Profit before tax | 23.2 million GBP | 16.4 million GBP | n/a | +41.5 percent |
| Earnings per share | 3.0 GBPence | 2.1 GBPence | n/a | +42.9 percent |
| Dividend per share | 2.5 GBPence | 2.1 GBPence | n/a | +19.0 percent |
| Operating cash outflow | (20.3) million GBP | (13.3) million GBP | n/a | -52.6 percent |
| Net debt | (374.7) million GBP | (381.4) million GBP | n/a | +1.8 percent |
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Summary and outlook
The Group delivered a strong financial performance in the first half of the year with robust like-for-like sales growth, net gains and improvement in operating margin. The second half of the financial year has started in line with our expectations. Like-for-like sales are expected to reflect the levels seen in the second quarter and the tough comparatives from the second half of last year. The pipeline of new contracts is encouraging, although it is always difficult to predict the precise timing of the opening of these new units. Whilst a degree of uncertainty always exists around global political events and passenger numbers in the short term, the geographical and sectoral diversity in our business, together with the significant structural growth opportunities and our programme to deliver operational improvements, leave us well placed to continue to deliver both to our customers and our shareholders.
About SSP
SSP is a leading operator of food and beverage concessions in travel locations, operating restaurants, bars, cafés, food courts, lounges and convenience stores in airports, train stations, motorway service stations and other leisure locations. With over 50 years of experience, today SSP has nearly 30’000 employees, serving approximately a million customers every day. SSP has business at approximately 130 airports and 290 rail stations, and operates approximately 2’000 units in 31 countries around the world.
SSP operates an extensive portfolio of approximately 400 international, national, and local brands. Among these are local heroes such as MASH in Copenhagen, James Martin Kitchen in London, and Hung’s Delicacies in Hong Kong. The SSP range also includes proprietary brands created for the travel sector including Upper Crust, Le Grand Comptoir and Ritazza, as well as international names such as Burger King, Starbucks and YO! Sushi. SSP also creates stunning bespoke concepts such as Junction Urban Street Food in London and Walter at Zurich.
