21st Jul 2015 07:15
LONDON (Alliance News) - SSP Group PLC Tuesday said that revenue fell in the third quarter of its financial year due to the strength of sterling against other European currencies, but trading was consistent with its expectations.
FTSE 250-listed SSP, which operates food and drink concessions such as Upper Crust in airports and train stations, said that total group revenue fell 0.1% in the period from April 1 to June 30, but would have grown 4.1% and 3.2% on a like-for-like basis had exchange rates remained constant.
In the nine months from October 1 to June 30, total group revenue declined 0.5% year-on-year, but would have risen 3.1% on a constant currency basis.
SSP said that like-for-like sales benefited from good growth in the UK due to strong passenger growth in the air sector, while North America benefited from a good performance at Terminal 4 in New York JFK airport.
The Rest of the World division also delivered "healthy like-for-like sales growth" and is seeing similarly strong trends in passenger numbers across most of the region, SSP said, while Continental Europe experienced a more challenging trading environment, particularly in France and Germany.
SSP added that if exchange rates remain as they are currently, total group revenue growth for the full year will be 4% lower on an actual currency basis than on a constant currency basis.
"The outlook for the group remains unchanged from that outlined in our 2015 interim results. While, as always, a degree of uncertainty exists around passenger numbers in the short term, the group remains well positioned to capitalise on the underlying positive trends in its markets," SSP said in a statement.
Shares in SSP opened down 1.9% at 300.99 pence on Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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