SSP Group PLC (LON:SSPG) saw its shares push higher today after the operator of food and beverage outlets in travel locations worldwide released an upbeat third quarter trading statement, with revenues lifted by the later timing of Easter and a rise in air passenger traffic.
In an update for the third quarter to June 30, the FTSE 250 group said that, on a constant currency basis, its total revenues increased by 14.6% compared with the same period last year, with like-for-like sales growth of 3.6%.
Given the pound's weakness against most currencies, total revenues for the period increased by 21.7% year-on-year at actual exchange rates, it added.
The increase in like-for-like sales in the third quarter was driven by a positive benefit arising from the timing of Easter and increased air passenger numbers. Trading in the rail sector, however, remained softer.
Net contract gains boosted by Chicago Midway airport start
The firm said it benefited from net contract gains of 7.6% and an additional 3.4% of revenue from Travel Food Services in India. The start of operations at Chicago Midway airport ahead of plan helped boost net contract gains.
"Looking forward, we expect net contract gains for the full year to be around 5.0%-5.5%. The anticipated operating profit contribution from new unit openings will, as normal, include the impact of pre-opening costs," SSP said.
"Looking forward, whilst a degree of uncertainty always exists around passenger numbers in the short term, particularly in the current environment, we are well placed to continue to benefit from the structural growth opportunities in our markets and to create further shareholder value," it added.
In late morning trading, SSP shares were up 1.8%, or 8.5p at 492.3p.
The group said results for the year ending September 30 are expected to be released on November 22.