SSP full year profit up 15% as passenger numbers grow

SSP Group posted a 15% rise in pre-tax profit as like-for-like sales saw good growth across all regions.

For the year to the end of September, the company, which operates food and beverage concessions at airports and railway stations, said pre-tax profit came in at £82m from £71.5m last year as revenue nudged up just 0.3% to £1.83bn.

Like-for-like sales were up 3.7%, driven by growth in air passenger travel and retailing initiatives and SSP declared a final dividend of 2.2p per share, bringing the full year dividend to 4.3p.

In the fourth quarter, LFL sale were up by around 5.2% thanks to increased air passenger numbers in the UK and Continental Europe over the summer.

Chief executive office Kate Swann said: “We continue to focus on delivering our strategic objectives, driving sales growth in our existing portfolio and winning new contracts which are extending our international operations, whilst remaining committed to operating an efficient business.

"The new financial year 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."

Nomura, which rates the stock at ‘buy’, said the results were 2-4% ahead of its expectations.

At 1250 GMT, SSP shares were up 3.1% to 305.60p.