Weaker pound lifts SSP revenue

19th Jul 2016 07:33

(ShareCast News) - FTSE 250 food and beverage outlet operator SSP said on Tuesday that if sterling remains weak due to the Brexit vote, its full-year revenue could be lifted by around 3%.In a trading update for the three months to 30 June, the company said revenue rose by 4.8% on a constant currency basis, with like-for-like sales growth of 3%.At actual exchange rates, given the weakening of the pound against major European currencies compared with the same period the previous year, total group revenues increased 9% year-on-year.The company, which operates Upper Crust and Millies Cookies, said LFL sales in the third quarter in the UK were robust and continue to benefit from passenger growth in the air sector.In Continental Europe, the picture remains mixed, with good performances in Spain and a weaker trading environment in France and Belgium due to the ongoing impact of the geopolitical incidents in Paris and Brussels and industrial action.Meanwhile, in North America, good LFL sales growth is being driven by passenger growth in the air sector.In the Rest of the World, LFL sales continue to be hit by the fall in passenger numbers in Egypt and the slowdown in passenger growth in China.SSP said the second half of the year has started in line with its expectations."Whilst a degree of uncertainty always exists around passenger numbers in the short term, we are well placed to continue to benefit from the structural growth opportunities in our markets and to create further shareholder value."At 0806 BST, shares were up 0.6% to 295.20p.