SSP says full year guidance remains "positive and unchanged"

SSP Group, which operates food and beverage outlets at airports around the world, said its full year expectations remain “positive and unchanged” .

In a trading statement for the first quarter ended 31 December 2015, the group said total revenue rose 6.2% on a constant currency basis, driven by like-for-like sales growth of 4.3% and net contract gains of 1.9%, in line with management’s expectations. At actual exchange rates, total revenue increased 1.9%.

UK and Continental Europe experienced a solid like-for-like sales increase at the start of the financial year but growth moderated as geopolitical turmoil deterred travellers.

In North America like-for-like sales growth in 2015 continued in the first quarter.

The Rest of the World segment posted like-for-like sales growth in line with expectations. However, SSP said trading in Egypt remained challenging due to the fall in passenger numbers amid unrest in the country.

“The new financial year has started in line with our expectations and the pipeline of new contracts is encouraging, although it is difficult to predict the precise timing of the openings of new units,” the company said in a statement.

“Whilst a degree of uncertainty always exists around geopolitical events and passenger numbers in the short term, the geographical and sectoral diversity of our business, together with the significant structural growth opportunities and our programme to deliver operational improvements, leave us well placed to continue to deliver for both our customers and our shareholders.”

Shares dipped 0.49% to 1,425p at 1110 GMT.