21st Jan 2020 08:44
(Alliance News) - SSP Group PLC reported on Tuesday a "good" start to its financial year, though Europe continues to be affected by strikes in France.
London-based SSP operates food and beverage outlets in transport locations such as airports and train stations. Brands include baguette-maker Upper Crust and cafe chain Ritazza.
Revenue in the first quarter ended December rose 7.5% constant currency, with the figure rising by 6.1% at actually currency rates. Like-for-like sales growth at constant currency was 1.2%.
SSP said the like-for-like growth figure met expectations, with headwinds noted in the second half of its last financial year continuing into its new year.
"Like-for-like sales growth in the UK and North America remained robust, driven by increasing passenger numbers," said SSP.
"Like-for-like sales in Continental Europe have been affected by the transport strikes across France during December. Like-for-like sales growth in the Rest of the World included, as expected, a full quarter's impact of the disruption in Hong Kong, but benefited from an improving trend in India," the company added.
SSP said contract gains were "strong" in the first quarter. The firm has won contracts in places such as Montparnasse railway station in Paris, new motorway services in Germany, as well as in Seattle, Oakland, and La Guardia, New York airports in the US.
Looking ahead, SSP has held like-for-like sales growth guidance for its financial year at just below 2%. It is confident of "another year of strong growth", though noted uncertainty will always exist over passenger numbers in the short-term.
SSP also announced the proposed acquisition of Station Food GmbH in Germany, for an undisclosed sum. Once fully operational in 2021, this business will add 28 new outlets in German railway stations, contributing around GBP10 million of revenue in SSP's current financial year.
SSP shares were 3.0% higher in early trade on Tuesday at a price of 684.00 pence each.
By George Collard; [email protected]
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