REG - SSP Group PLC - SSP AGM and update on the COVID-19 virus

SSPAnnouncement

26/02/2020 07:00

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RNS Number : 1061E  SSP Group PLC  26 February 2020

LEI:213800QGNIWTXFMENJ24

26 February 2020

SSP GROUP PLC

SSP AGM and update on the COVID-19 virus

 

SSP ("SSP" or "the Group"), a leading operator of food and beverage outlets in
travel locations worldwide, will today hold its Annual General Meeting and,
ahead of this, issues an update to the market on current trading and the
impact of the COVID-19 virus (Coronavirus).

 

In the current financial year trading in the UK, Continental Europe and North
America, which together account for approximately 86% of Group revenue, has
been in line with our expectations. In the Rest of the World, which accounts
for 14% of group revenue and comprises the Asia Pacific region, India and the
Middle East, we have seen an impact from the COVID-19 virus.

 

Since the escalation of the virus during January, our immediate priority has
been the health and safety of our colleagues, customers and partners based
across China and the Asia Pacific region. We have worked closely with our
teams and local authorities to implement a range of additional health and
safety policies and protocols covering hygiene, travel and quarantine periods,
in order to keep people fully informed and as well protected as possible
against infection.

 

In terms of the impact at the airports in which we operate across the region,
in China we have seen sharp declines in both domestic and international air
passenger numbers, which are currently running c. 90% lower YOY. In Hong Kong
passenger numbers are c. 70% lower YOY and across a number of our other Asia
Pacific countries, including Singapore, Thailand, Taiwan and the Philippines,
passenger numbers are between 25% and 30% lower YOY. Elsewhere, we have also
seen some impact at our airports in Australia, as well as at major travel hubs
in the Middle East and India, although to date this has been less severe.

 

In response to the sharp fall in sales in China and across the Asia Pacific
region, we have been working with our clients to maintain appropriate service
levels, whilst taking all the necessary action we can to reduce costs,
including the temporary closure of units and reduced operating hours.

 

In terms of the financial impact of COVID-19, our expectation is that for the
month February sales across the Asia Pacific region (which accounts for
approximately 8% of SSP Group revenues) will be approximately 50% lower YOY.
Together with the impact in the Middle East and India, this is expected to
reduce overall Group revenue in February by approximately £10m - £12m, with
a corresponding reduction in operating profit of approximately £4m - £5m.

 
Summary and outlook

Clearly the duration of the COVID-19 virus and its impact on global travel is
uncertain at this stage, as are its consequences for our financial performance
for the full year. We will continue to take all the necessary action as
appropriate. Our strategy remains unchanged, and we continue to be well placed
to benefit from the significant structural growth opportunities in our markets
over the medium term and to create ongoing value for our shareholders.

 

 

 

CONTACTS

 

Investor and analyst enquiries

 

Sarah John, Director of Investor Relations, SSP Group plc

+44 (0) 203 714 5251; E-mail: sarah.john@ssp-intl.com

 

Media enquiries

 

Peter Ogden / Lisa Kavanagh, Powerscourt

+44 (0) 207 250 1446; E-mail: ssp@powerscourt-group.com

 

 

NOTES TO EDITORS

 

About SSP

 

SSP is a leading operator of food and beverage concessions 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 over 50 years of experience, today we have more
than 39,000 employees, serving approximately one and a half million customers
every day. We have business at approximately 180 airports and 300 rail
stations, and operate more than 2,800 units in 35 countries around the world.

SSP operates an extensive portfolio of more than 550 international, national,
and local brands. Among these are local heroes such as Brioche Doree in Paris,
LEON in London, and Hung's Delicacies in Hong Kong. Our range also includes
proprietary brands created for the travel sector including Upper Crust, Cabin
Bar and Ritazza, as well as international names such as M&S, Burger King,
Starbucks, Jamie's Deli and YO! Sushi. We also create stunning bespoke
concepts such as Five Borough Food Hall in JFK, New York and Norgesglasset Bar
in Oslo Airport.

www.foodtravelexperts.com (http://www.foodtravelexperts.com/)
(http://www.foodtravelexperts.com/)

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