Hungry airline passengers drive growth at SSP Group

The FTSE 250 firm said like-for-like sales grew 3.3%, driven by growth in air passenger travel and retailing initiatives.

It saw net gains of 2% during the period, with strong performances in its North America and Rest of World geographic regions.

Revenues were up 5.9% at constant currencies and 4.4% at actual exchange rates to £897m during the first half, with the operating margin up 50 basis points to 3.4% as the company’s strategic initiatives delivered further improvements.

Earnings per share improved 43% to stand at 3p, with the board declaring an interim dividend of 2.5p per share, up 19%.

“SSP has made further good progress in the first half of 2016 and we continue to deliver our strategic initiatives,” said SSP Group CEO Kate Swann.

“Constant currency operating profit was up 28% driven by good like-for-like sales growth in our existing business, new contract openings, which are building our presence across the world, and further operational improvements.”

Swann said she was particularly encouraged by the pace of development in the company’s North America and Asia Pacific operations.

“Looking forward, the second half has started in line with our expectations,” Swann said.

“Whilst a degree of uncertainty always exists around passenger numbers in the short term, we are well placed to benefit from the structural growth opportunities in our markets and to create further shareholder value.”