7th Aug 2014 09:25
LONDON (Alliance News) - SSP Group PLC Thursday added its name to the list of companies reporting a hit from the strength of sterling on its sales in its fiscal third quarter, adding that its performance in the UK, North America and Asia Pacific is offsetting weakness in Europe and saying trading for the period was in line with its expectations.
The food and drink concessions operator's sales were up 3.5% on a constant currency basis in the three months to June 30. At actual rates, sales were down 1.4% owing to the impact of sterling strength.
Like-for-like sales growth was 3.3% year-on-year, driven by strong performances in its UK, North America and Asia-Pacific businesses. Sales from those regions offset weakness in Continental Europe, particularly in France.
During the quarter, the group signed a number of new contracts, including a GBP135 million, seven-year deal at Stansted Airport and an USD80 million, ten-year contract at Sacramento Airport in the US. It also opened its first stores in Qatar at the Hamad International Airport in Doha.
SSP said it is benefiting from robust passenger growth in core travel markets, though it said uncertainty continues in some smaller markets as a result of political instability in certain regions and the impact of this on tourism.
Kate Swann, the Chief Executive of SSP, said the group remains confident in its outlook for the full year.
The company will publish preliminary results for the year to September 30 on November 27.
SSP shares were flat on Thursday, quoted at 229.85 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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