SSP Group, the leading operator of food and beverage outlets in travel locations worldwide, has announced results for the six months ended 31 March 2014, showing profits rose 28%. Commenting on the results, Kate Swann, CEO of SSP, said:
“This has been a period of strong growth for SSP, with profit up 28% year-on-year and like-for-like sales up 3.2%. We have delivered increases in revenue and EBITDA across all the regions in which we operate, with North America and Asia Pacific continuing to perform particularly well. It is pleasing to note that the outlets in which we have invested recently, most notably in the US, are trading strongly. The new contracts won during the period demonstrate both our broad geographic spread and our ability to provide innovative solutions to our clients’ specific requirements all over the world. The second half of the year has started well and we remain confident in the company’s prospects for the rest of 2014 and beyond.”
Financial and operational highlights
- Strong operating profit growth of +28.2% on a constant currency basis to £19.7m (up 16.6% at actual FX rates)
- Sales up 4.6% on a constant currency basis to £865.8m (up 2.2% at actual FX rates), with like-for-like sales growth of 3.2%
- EBITDA up 12.6% on a constant currency basis to £54.0m (up 8.0% at actual FX rates)
- Increase in net margins, reflecting improved performance across all areas of the business
- Revenue and EBITDA progression in all regions on a constant currency basis, with particularly strong performances in North America and Asia Pacific
- Strong performance from recent investment in outlets in major airports, for example in the US at JFK, Phoenix and San Diego airports
- Contract developments during the period included:
o A five year deal worth £50m to operate six units at Beijing airport
o A 10 year deal worth €300m to operate 11 units at Helsinki airport and nine units at Finland’s three regional airports of Turku, Oulu and Rovaniemi
o A 10 year deal worth €80m to operate eight new units at Bordeaux airport
o A seven year deal worth €42m to operate nine units at Athens airport
- Continued development of the Group’s extensive brand portfolio, for example the launch of two new bespoke concepts: Central Diner, a 1930’s-inspired New York diner at JFK airport; and Flying Hippo, an American-style family diner at Newcastle Airport.