SSP full-year profit up, announces £100m special dividend

SSP reported a rise in full-year profit on Wednesday as it announced a special dividend of around £100m, but said that like-for-like revenue growth next year is expected to drop slightly.

The company, which operates food and beverage outlets in travel locations, said underlying pre-tax profit was up 38% to £148.7m in the year to the end of September as revenue grew 11.7% to £2.4bn. Underlying operating profit was 27% higher at £162.9m.

Pre-tax profit came in ahead of consensus expectations of £145m.

The group said its performance was driven by like-for-like sales growth, new contract openings across the world and the ongoing implementation of its programme of operational improvements.

The Upper Crust owner said its performance was driven by like-for-like sales growth, new contract openings across the world and the ongoing implementation of our programme of operational improvements.

SSP declared a final dividend of 4.0p per share, bringing the full year dividend to 8.1p, up 50%. It also announced plans for a special dividend of around £100m, which will be accompanied by a share consolidation.

During the year, SSP won a number of significant new contracts, including at airports in Seattle, Los Angeles and Boston in North America, and in Cebu in the Philippines. It expects to begin operating these contracts progressively over the next two years.

Chief executive officer Kate Swann said: "We have grown our presence across the world, particularly in North America and Asia and we are pleased with the performance of our new business in India. We have invested significant capital in the business this year, our highest to date, and at the same time we are returning cash to shareholders.

"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."

The company said that given the current level of general economic uncertainty, it expects slightly lower like-for-like revenue growth next year.

At 1020 GMT, the shares were up 6.6% to 647p.