SSP Group 2018 Interim Results
Underlying operating profit of £55.2m: up 32.6% at constant currency, and 29.0% at actual exchange rates
Revenue of £1,177.8m: up 11.9% at constant currency; 9.8% at actual exchange rates
Like-for-like sales up 2.8%: driven by air passenger travel and retail initiatives
Net gains of 7.1%: strong performances in North America and the Rest of the World
Acquisitions of TFS in India and Stockheim in Germany added 2.0% to revenue
Underlying operating margin (excluding the acquisition impact of TFS) up 50 basis points at constant currency, strategic initiatives delivering well. Including the impact of acquisitions, the combined group underlying operating margin increased a further 20 bps to 4.7%
Underlying profit before tax of £48.7m: up 40.3%. Reported profit before tax of £48.4m
Underlying earnings per share of 5.6 pence: up 33.3%. Reported earnings per share of 5.6 pence
Interim dividend of 4.8 pence per share, up 50.0%. This follows the completion of the c.£100m special dividend and share consolidation, in April 2018
Encouraging pipeline of new contracts
Commenting on the results, Kate Swann, CEO of SSP Group, said:
"SSP has delivered another strong performance in the first half of 2018. Operating profit was up 32.6% at constant currency, driven by good like-for-like sales growth, significant new contract openings and further operational improvements. We have continued to grow our presence across the world, particularly in North America and Asia and our new business in India is performing well.
Looking forward, the second half has started in line with our expectations and whilst a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets and our programme of operational improvements."