REG - SSP Group PLC - Trading Update

SSPAnnouncement

04/02/2022 07:00

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RNS Number : 6767A  SSP Group PLC  04 February 2022

 

LEI:213800QGNIWTXFMENJ24

 

04 February 2022

SSP GROUP PLC

Trading Update

 

SSP Group plc, a leading operator of food and beverage outlets in travel
locations worldwide, issues its Trading Update for the first four months of
its financial year ending 30 September 2022, covering the period from 1
October 2021 to 30 January 2022.

SSP has had a good start to the new financial year, notwithstanding the impact
of the Omicron variant of Covid-19 on the travel sector. Over the first four
months of the financial year, total Group revenues were c.62% of 2019 levels.

As reported at our Preliminary Results in early December, trading had
recovered well over the summer and early autumn, with sales running at c.66%
of 2019 levels in the first nine weeks of the new financial year (1 October to
5 December 2021). This had been led by the Rail sector, at c.71% of 2019
levels, benefitting from a return to office work as well as strengthening
leisure traffic, with the Air sector, at c.62%, boosted by an extended holiday
season in the autumn across the UK, Continental Europe and North America.

The spread of the Omicron variant around the world and the subsequent
government restrictions have inevitably had an impact on passenger numbers in
many of our markets, leaving overall Group sales in the latest eight weeks
(from 6 December to 30 January) at c.57% of 2019 levels. Trading remained
resilient during December and throughout the holiday period, before softening
in early January. The recent weeks have been more encouraging, as government
restrictions have been lifted in the UK and some Continental European markets,
with sales now trending positively again, driven mainly by strengthening
trading in the Rail sector as commuter travel returns.

We are continuing to actively manage unit openings and closures in response to
the fluctuating demand and currently have c. 1,950 units open, c. 72% of the
estate, a similar number to that reported in early December with our
Preliminary Results.

In line with the fourth quarter of 2021, underlying EBITDA (on a pre-IFRS 16
basis) was positive during the first quarter of the financial year. Net cash
flow during the first quarter was broadly neutral as working capital has
continued to benefit from payment deferrals. In early February, we fully
repaid the £300m drawn from the Bank of England under the Covid Corporate
Financing Facility (CCFF), leaving pro-forma available liquidity at £630m at
the end of the first quarter (31 December 2021), compared with £635m at the
end of September (on a similar proforma basis, excluding the CCFF).

 

 

Outlook

Whilst the Omicron variant continues to have some impact on trading, we are
confident in our ability to manage any short-term volatility and, subject to
no further government restrictions being introduced, we are well positioned
for the important summer trading period. Our medium-term expectations, which
are for a return to like-for-like revenues and EBITDA margins at broadly
similar levels to 2019 by 2024, remain unchanged.

Annual General Meeting

The Group's Annual General Meeting will be held today at 11:00am at the
offices of Travers Smith LLP, at 10 Snow Hill, London EC1A 2AL.

 

There will be a 30 minute conference call and Q&A with Jonathan Davies,
Deputy Group CEO, at 8:00.  To register, please use the following link:
https://webcasts.foodtravelexperts.com/results/2022tradingupdate/vip_connect

 

CONTACTS:

Investor and analyst enquiries

 

Sarah John, Corporate Affairs Director, SSP Group plc

On 4 February 2022: +44 (0) 7736 089218

Thereafter: +44 (0) 203 714 5251

E-mail: sarah.john@ssp-intl.com

 

Media enquiries

 

Peter Ogden / Nick Hayns

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. We are present in 36 countries around the world and
have a portfolio of more than 550 international, national and local
brands.

 

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

 

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