UK/INTERNATIONAL. Travel food & beverage services company SSP Group announced today that Group CEO Kate Swann is to step down on 31 May 2019 after more than five years with the company.
Swann will be succeeded by Simon Smith, currently Chief Executive Officer UK & Ireland. Smith has joined the PLC Board with immediate effect and will be appointed as CEO on 1 June 2019. He will work closely with Swann during the next six months to ensure a smooth transition.
SSP Group Chairman Vagn Sorensen said: “It has been a pleasure to work with Kate, and on behalf of the Board I want to thank her for her enormous contribution to the Group. In the past five years, Kate has transformed SSP into an industry leading Food Travel Retail business, which has grown significantly around the world, and she has generated significant returns for our shareholders.
“Succession planning is deeply embedded into the Group and following a thorough process, we are delighted with Simon’s appointment. Simon joined SSP Group in 2014 and has contributed significantly to the performance of the Group as CEO of UK & Ireland for the past four years.
“Since joining, Simon’s role has expanded and he has taken on wider global leadership responsibilities, most recently looking after the integration and development of our joint venture business in India, which has delivered excellent results.
“Simon’s strong leadership skills combined with his considerable experience in the food travel and retail space, as well as his track record at SSP, make him well placed to lead SSP to continued future success. Simon will work alongside our CFO Jonathan Davies who has provided excellent support to Kate and will continue to bring his wealth of experience to the Board.”
Kate Swann said:“Today we’ve announced another record set of results, growing earnings a further +24% and proposing £150 million return of cash to shareholders, so I am stepping down at a time when the business is clearly in great shape, with a strong senior management team and enormous future growth potential.
“It’s been a privilege to work with the many talented people that make up the SSP team and who have contributed to making it a world class business. I look forward to working closely with Simon in the next six months to ensure a smooth handover, and I am confident that he will lead the Group to even greater success in the future.”
Simon Smith commented: “I am delighted to be appointed as SSP’s next Group CEO. SSP is a fantastic business with excellent on-going growth potential. We have a strong senior management team and thousands of dedicated colleagues around the world, and I am confident that together we will continue to build on the success achieved. I look forward to working closely with Kate over the next six months to ensure a smooth transition.”
Buoyant full-year results
The management changes came as SSP Group posted reported revenue of £2,564.9 million (US$3,278.5 million) for the year ended 30 September, up +9.5% at constant currency and +7.8% at actual exchange rates.
Underlying profit was reported at £195.2 million (US$249.5 million), up +22.7% at constant currency and +19.8% at actual exchange rates. SSP said like-for-like sales were up +2.8%, driven by growth in air passenger travel and retailing initiatives.
Swann said: “SSP has delivered another strong performance in 2018. Operating profit was up +22.7% at constant currency, driven by good like-for-like sales growth, substantial new contract openings and further operational improvements.”
She noted that North America, India and Latin America were regions of particular growth.
SSP said strong net gains of +5.1% were driven by North America and the Rest of the World.
Underlying profit before tax rose by +24% to £184.4 million ($US235.7 million) and reported profit before tax was £182.9 million ($US 233.8 million), up +26.3%.
Underlying basic earnings per share increased by +23.6% to 25.1 pence (32.1 cents) while reported basic earnings per share rose +27.7% to 24.9 pence (31.8 cents).
The report said underlying operating cash inflow was £90.2 million ($US115.3 million) after “another record year of investment”.
Swann commented: “The new financial year has started in line with our expectations and, whilst a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets.”
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The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. This year’s FAB took place on 20-21 June in Helsinki. FAB 2019 will be held in Dallas, Texas, on 26-27 June.