From the Wires
SSP Group Results for the Year Ended 30 September 2012
By: PR Newswire
Dec. 12, 2012 02:03 AM
LONDON, December 12, 2012 /PRNewswire/ --
SSP Group, the leading dedicated operator of food and beverage brands in travel locations, announces its audited financial results for the year ended 30 September 2012.
Financial and operational highlights
Strong financial performance benefitting from continued recovery in global travel markets:
Sales of £1.74bn, +3.2% (on a constant currency basis)
Like-for-like sales growth of +2.7%, benefitting from strong performances in Asia Pacific, the USA and Scandinavia
Strong underlying EBITDA growth of +10.0% to £139.1m (on a constant currency basis)
Operating cash flow generation of £85.6m (2011: £55.4m)
Net cash flow after interest of £41.4m (2011: £7.4m)
Contract renewals of £168m (annual sales value), representing a retention success rate of 87%, with key renewals including: Geneva, Abu Dhabi, Gothenburg and Reno airports; and Birmingham New Street, London Bridge and Gare de Lyon railway stations
New contract wins of £82m (annual sales value), including Phoenix and JFK airports in the USA, Xian and Hangzhou airports in China, and Nantes airport, Bordeaux railway station and Grenoble railway station in France
Enhancements made to SSP's brand portfolio during 2012, including: the opening of the first ever YO! Sushi in Norway and the first ever Starbucks outlets in both Norway and Finland; exciting new brand partnerships in Asia, including Hung's Delicacies, Taji Tea, and Tai Hing; and the continued international roll out of SSP's own brands, including Caffè Ritazza, Upper Crust, Camden Food and Le Grand Comptoir
Andrew Lynch, CEO of SSP, said:
"2012 has been another successful year for SSP, and I am pleased to report that we have delivered a strong trading performance as we have continued to benefit from a broad geographic presence, an outstanding portfolio of brands, and the ongoing resilience of the core airport and railway travel markets in which we operate.
We have continued to invest in the long term growth of the business and have been successful in winning a number of major new contracts in growth markets during the year, most notably at Phoenix and JFK airports in the USA and at Hangzhou and Xian airports in China. Our contract retention rate has remained extremely high, and we continue to help some of the world's biggest brands enter new markets, whilst keeping up the momentum in developing and rolling out our own brands across the world.
The business continues to trade well and the current performance is in line with our expectations. We see a strong pipeline of opportunities, particularly in Asia and the USA, that should help offset the continuing economic uncertainty in the eurozone. Furthermore, we are confident that the underlying trends in our core markets will enable us to deliver further growth in sales and profits in 2013 and beyond."
2012 2011 Actual Constant Financial results GBPm GBPm FX Rates Currency Sales 1,737.5 1,721.0 1.0% 3.2% Like for Like Sales Growth 2.7% 4.8% EBITDA* 139.1 130.0 7.0% 10.0% EBITDA Margin % 8.0% 7.6% Operating Profit* 61.5 51.6 19.2% 23.7% Operating Margin % 3.5% 3.0% Capex (63.8) (60.5) - - Operating Cash Flow 85.6 55.4 - - Net Cash Flow 41.4 7.4 - -
*pre exceptional costs
NOTES TO EDITORS:
SSP is the leading dedicated provider of food and beverage brands in travel locations, operating restaurants, bars, cafés, food courts, lounges and convenience stores in airports, train stations, motorway service stations and other leisure locations. With a heritage stretching back over 60 years, today SSP has 30,000 employees serving over a million customers every day. It has business at over 140 airports and over 250 rail stations, and operates more than 2,100 units in 30 countries around the world.
SSP operates an extensive portfolio of over 200 international, national, local and speciality brands. These include Upper Crust, Starbucks, Caffè Ritazza, Burger King, M&S Simply Food, Millies Cookies, O'Learys, Caviar House & Prunier, Ajisen Ramen and Saboten, as well as stunning bespoke concepts such as the Montreux Jazz Café in Geneva and the award winning Center Bar at Zurich.
Its brand portfolio is tailored for each specific location, depending on variables such as passenger profile, consumer need states, location type, size and design.
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