SSP Group results for the year ended 30th September 2011

SSP News Release 12-December-2011

SSP Group, the leading dedicated operator of food and beverage brands in travel locations, today announces its audited financial results for the year ended 30 September.

 Overview

·Strong financial performance benefitting from continued recovery in travel markets

·Robust like-for-like sales growth driven by Scandinavia, USA and Asia Pacific regions

·Long-term sector fundamentals remain sound, with SSP well placed for future growth

 Financial highlights

·Sales of £1.7bn, with total sales growth of +5.7% and a like-for-like sales increase of +4.8%

·Strong EBITDA growth of +13% to £130.0m          

·Operating cash-flow of £56.9m after capital expenditure of £60.5m

 Operational highlights

·Contract renewals of £185m (annual sales value), representing a retention success rate of 86%, with key renewals including: Oslo, Tenerife South, Copenhagen, Liverpool, Belfast and Leeds/Bradford airports; Gothenburg and Malmo railway stations in Sweden; and the East Coast and Eurostar on board rail contracts in the UK

  ·£93m (annual sales value) of new contract wins across Europe, the U.S. and China,  including: Vienna, Paris-Orly, London City, Frankfurt, Sacremento, San Diego, and Hong Qiao airports

· New brand developments announced during 2011 including: Montreux Jazz Cafe exclusivity for travel; the first ever Starbucks in Sweden, with Norway and Finland to follow in 2012; further development of the WH Smith brand in Sweden; a new franchise partnership with Nespresso in France; and the first Yo Sushi in Norway

 Andrew Lynch, CEO of SSP, commenting on the results for the year, said:

 “I am pleased to report that SSP has delivered robust like-for-like sales growth during 2011, and this, together with improvements in operational productivity, has driven a strong year-on-year increase in profit.  We have continued to win new business and have successfully renewed and extended a number of our most significant contracts in Europe. Our unrivalled insight into the needs and behaviour of consumers in the travel environment remains critical to our success in building the business around the world, and we have continued to help some of the world’s biggest brands enter into and thrive in the travel sector. Despite the uncertainty in the current economic climate and the pressures on consumer spending and passenger numbers in the travel sector, we remain well positioned for the year ahead.”

 Recent activity

SSP is also pleased to announce today a successful contract win for five new restaurants at Xian airport in China, one of the fastest growing airports in the world, as well as the ten year extension of a significant existing contract at Gare de Lyon in Paris.

 

 

Financial results

2011

£m

2010

£m

Change

 

Sales

Like for Like Sales Growth

1,721.0

+4.8%            

1,628.1  

+3.4%                                                                         

+5.7%

 

EBITDA

EBITDA Margin %

130.0             

7.6%               

115.1 

7.1%        

+13.0%

+0.5%

 

Capex

60.5

45.0

 

 

Operating Cashflow

56.9

68.0

 

 

© SSP Group plc The Food Travel Experts 2008 - 2017