SSP revenue increases as it acts on strategic initiatives

29th Nov 2016 08:25

(ShareCast News) - Starbucks and Burger King travel food operator SSP Group reported a rise in full year revenue as it focuses on delivering shareholder value.The FTSE 250 company said its strategy is to optimise like-for-like sales growth, expand globally, optimise gross margins and generate operating efficiencies.For the year ended 30 September, the operator of food and beverage brands in over 152 airports and 270 train stations, said that revenue rose 5% to £1.9bn at a constant currency basis and 8.6% at actual exchange rates, compared to last year.Like-for-like sales edged up 3% due to growth in air passenger travel and new retail initiatives, with net gains of 1.7% driven by "strong" performances in North America and the rest of the world.This resulted in a 31.1% surge in underlying pre-tax profit of £107.5m and a reported pre-tax profit of £105.6m.Underlying operating profit increased by 18.2% to £121.4m at constant currency and 24.6% at actual exchange rates, driven by like-for-like sales growth, operational improvements and new contract openings.While the underlying operating margin was up 70 basis points at constant currency to 6.1%.Earnings per share gained 26% to 15.50p underlying and 15.20p reported.Underlying operating cash inflow was £78.3m, after increased investment in the business.Chief executive Kate Swann said: "SSP has delivered another good performance in 2016 and we continue to make progress on our strategic initiatives."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 and our programme of operational improvements."The company declared a final dividend of 2.90p per share, bringing the full year dividend to 5.40p, up 26%.Shares in SSP Group were up 6.79% to 365p at 0841 GMT.