SSP accelerates revenue growth but currency drags

21st Jul 2015 08:47

(ShareCast News) - Food and beverage operator SSP posted constant currency revenue growth of 4.1% for the third quarter to 30 June 2015.The jump accelerated the 2.6% revenue growth the food operator posted at the halfway stage and was consistent with expectations.SSP said like-for-like sales growth was up 3.2% compared with the same period last year, buoyed by good growth in the UK and North America.However, a strengthening sterling against major European currencies dragged down revenue at actual currency rates as 0.1% year on year.The travel food specialist also said outlook for the end of the year remained unchanged."While, as always, a degree of uncertainty exists around passenger numbers in the short-term, the group remains well positioned to capitalise on the underlying positive trends in its markets."Shore Capital retained a 'buy' rating on the stock and a target price of 306p.Analyst Greg Johnson said currency fluctuations would be a 4% drag on full year revenues compared with previous expectations of about 3.6%."We see SSP as a multi-decade structural growth story. Our long term based cash flow methodology implies fair value of around 300p," Johnson said.Shares in SSP slid 2.12% to 300.20p at 0800 BST.