SSP holds outlook as LFL sales grow 3%; Cautious on Iran war impact

(Sharecast News) - Travel food outlet operator SSP Group posted a 3% rise in like for like sales in the first six weeks of the second half, despite a slump in passenger traffic in Asia and the Middle East due to the Iran war.

The Upper Crust owner said the rise compared to 5% in the first two quarters of the fiscal year, adding that it still expected earnings to be within consensus estimates.

"However, if the operating environment were to deteriorate e.g. due to a resumption of the conflict in the Middle East, a material further decline in the availability of aviation fuel, or a marked softening of consumer travel sentiment, it would inevitably impact our full year performance," the company said on Tuesday.

Underlying operating profit for the six months to March 31 rose 9% to £50m. SSP expects full-year earnings per share to remain within the market consensus range of 13.6p - 14.8p.

Sales in the Asia-Pacific, Eastern Europe and Middle East - excluding the Gulf - fell to zero from 14% growth from April 1 to May 10 due to a drop in connecting flights and lower local traffic.

Gulf operations were running on average at 60% of usual capacity.

"Visibility to the resolution of this conflict continues to be limited and we are monitoring developments closely," SSP said.

Passenger numbers in the UK, North America and Continental Europe - around 80% of group sales - remained largely unaffected by the war to date.

Reporting by Frank Prenesti for Sharecast.com

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