SSP (SSPG), which owns Caffè Ritazza, Upper Crust and Millie's Cookies, released annual results this week - its first since joining the London market in July. A steady rise in passenger numbers is spurring good growth for the travel outlet operator, with global like-for-like sales up 3.3 per cent last year. This reflected strong trading across the UK, North America and Asia Pacific, which helped offset sluggish growth in France, Germany and Egypt.
The UK and Irish business accounts for nearly 40 per cent of group revenue. Sales there rose 1.9 per cent at constant currencies, with like-for-like growth of 4.1 per cent offset by the loss of a big on-board train contract. Combined with an 80 basis-point increase in the underlying operating margin, to 5.6 per cent, this drove a 17 per cent improvement in underlying operating profits.
North America was also a star performer last year. Strong trading at JFK Terminal 4 in New York contributed to a 6 per cent hike in like-for-like sales growth and a 70 basis-point increase in the underlying operating margin.
Analysts at Numis expect pre-tax profits of £80.7m for the current financial year, giving EPS of 14.3p, up from £61.8m and 13.3p respectively in 2013-14.
| SSP (SSPG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 250p | MARKET VALUE: | £1.19bn | |
| TOUCH: | 249-250p | 12-MONTH HIGH: | 269p | LOW: 210p |
| DIVIDEND YIELD: | nil | PE RATIO: | 23 | |
| NET ASSET VALUE: | 49p* | NET DEBT: | 148% | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.72 | -6.7 | -1.12 | na |
| 2012 | 1.74 | 14.4 | -0.03 | na |
| 2013 | 1.83 | 16.2 | -0.50 | nil |
| 2014 | 1.83 | -13.5 | 10.7 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £659m, or 139p a share | ||||
