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SSP Group PLC on Tuesday said it remains on track to deliver annual results within guidance, despite a softening of sales in the financial third quarter. The London-based firm, which operates food and beverage outlets in travel locations, said sales rose 6% in the quarter ended June 30 from a year ago, on a constant currency basis, with like-for-like sales growth of 3%, net contract gains of 4% and a 1% contribution from acquisitions. In the six months to March 31, LFL sales grew 5%. Like-for-like sales growth in the first six weeks of the quarter was 5%. But the pace of growth in the last seven weeks of the quarter moderated to 1%, reflecting a softening of like-for-like sales in the UK and Asia Pacific and Eastern Europe & Middle East. More recently, LFL sales growth improved to around 3% in the first three weeks of the fourth quarter, SSP said. In response, shares in SSP fell 6.8% to 165.82 pence each in London on Tuesday. In North America, sales grew 5% but LFL sales fell 2%, reflecting lower passenger numbers. In the UK, sales rose by 7%, or 6% LFL, driven by strong growth at the beginning of the quarter, helped by the timing of Easter. In Continental Europe, sales were flat year-on-year, including LFL sales up 1%, reflecting weaker levels of consumer spending in many markets, SSP said it had planned for a ‘degree of uncertainty’ in demand for the second half and have ‘accelerated our programme of cost efficiencies and other initiatives to drive improved margins, cash conversion and investment returns.’ As a result, and with an improved trading momentum at the start of the fourth quarter, the company said it remains on track to deliver results within planning assumption ranges for the year at constant currency. SSP said its planning assumptions are for revenue of £3.7 billion to £3.8 billion, with underlying pre-IFRS operating profit of £230 million to £260 million, and earnings per share of 11.5p to 13.5p, all on a constant currency basis. In the financial year that ended September 30 last year, SSP reported revenue of £3.43 billion, operating profit of £206 million, and EPS of 10.0p. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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