Travel concessions operator SSP said it made a good start to its new financial year and that expectations for its full year remain positive and unchanged.
The company said that like-for-like sales grew strongly in the UK and Continental Europe in the early part of the new financial year, but that this has moderated slightly in recent weeks reflecting the impact of geopolitical activity.
Total revenue in the group’s first quarter to the end of December increased by 6.2% on a constant currency basis, comprising like-for-like sales growth of 4.3% and net contract gains of 1.9%, which it said was in line with its expectations. Total revenue growth at actual exchange rates was 1.9%.
It said that in North America the positive trends in like-for-like sales growth in 2015 continued throughout the first quarter of 2016.
The company said that in the Rest of the World, like-for-like sales growth is in line with expectations, although trading in Egypt remains challenging due to the fall in passenger numbers. It said that its pipeline of new contracts remained “encouraging”.
The company said: “The new financial year has started in line with our expectations and the pipeline of new contracts is encouraging, although it is difficult to predict the precise timing of the openings of new units. Whilst a degree of uncertainty always exists around geopolitical events and passenger numbers in the short term, the geographical and sectoral diversity of our business, together with the significant structural growth opportunities and our programme to deliver operational improvements, leave us well placed to continue to deliver for both our customers and our shareholders.”
