“A resilient Q4 performance”: SSP Group issues latest Trading Update

SSP Group, a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 38 countries, today (October 9) issued a Trading Update for both the final quarter (Q4) and its financial year ended  September 30, 2025 (FY25).

SSP remains on track to deliver earnings per share for the full-year in the middle of the previously published planned range and in line with current market expectations despite a moderation in the growth of passenger numbers in the second half of the financial year.

In addition, SSP has announced the initiation of a £100 million share buyback, consistent with its capital allocation strategy, reflecting its healthy balance sheet position and highlighting the Board’s confidence in prospects into FY26.

Performance headlines include:

• FY revenue of c.£3.7bn, up c.8% YoY, with FY operating profit expected to be c.£230m, up c.11% YoY, and with operating margin of c.6.2%, up c.20bps (all on a constant currency basis)

• At actual exchange rates, FY EPS expected to be c.11.5p, a year-on-year increase of 15%, including a lower-than-expected effective tax rate and interest charge. On a constant currency basis, FY EPS expected to be c.12.3p, in the middle of the planned range for the year

• Leverage (Net Debt/ EBITDA) expected to reduce from 2.2x at the half year to approximately 1.6x (at actual FX rates) at year-end driven by strong free cash flow generation including planned lower capital spend and improved working capital performance

• With leverage now returning to the lower end of its medium-term target range of 1.5-2.0x as planned and given the group’s confidence in its cash generation prospects into FY26, it is initiating a share buyback of £100 million

• Anticipate FY Group ROCE strengthening from last year’s result of 17.7% (pre-tax)

• Q4 revenue growth of c.4% YoY (on a constant currency basis), reflecting growth in Asia PAC&EEME, North America and UK , offset by lower sales in Continental Europe

• Pursuing further performance improvement initiatives into 2026 including; driving profitable sales growth, improving profitability in French and German markets, delivering cost efficiencies across the Group, driving returns on investment from our recent growth initiatives and an enhanced focus on free cash generation

Commenting on the performance, Patrick Coveney, CEO of SSP Group, said, “We have delivered a resilient Q4 performance against an unsettled macro-economic and softer demand environment in some of our key travel markets. Our UK and Asia Pacific businesses have traded particularly well and, taken in aggregate, our performance in the quarter across the portfolio leaves us on track to deliver earnings per share for FY25 in line with current market expectations. In addition, facilitated by our strong cash generation in the second half and given our confidence in the outlook for next year, we are pleased to be announcing a £100m share buyback program today, in line with our capital allocation priorities.

“While our strategy for enhanced financial returns is starting to deliver, we remain focused on strengthening performance across the group. In particular, we recognize the imperative to do so rapidly in France and Germany. While we have made good progress with many of the initiatives that we have underway, more still needs to be done. We are working at pace to accelerate our actions as we enter the next financial year.”

Q4 revenue performance

Group sales in Q4 (1 July to 30 September 2025) were up 4% year-on- year, on a constant currency basis, with like-for-like sales growth of 2% and net contract gains of 3%. Group sales also included an impact of (1)%, principally from the previously announced phased exit of our German Motorway Services business.

In North America, sales grew by 4% year-on-year, on a constant currency basis, including 6% net gains, as the group expanded its footprint to 56 airports, and a like-for-like sales decline of (2)%, reflecting a continuation of lower passenger numbers across our network of airports in recent months.

In Continental Europe, sales were (3)% lower year-on-year, reflecting the impact from the ongoing phased exit from our unprofitable MSA units in Germany, with the complete exit from this channel to be substantially complete in H1 FY26. Like-for-like sales were 1%, despite weak consumer sentiment and spend levels, most particularly in the French and German rail businesses. Underlying net gains were also flat year-on-year, reflecting  prioritization of organic investment into other higher returning regions.

In the UK & Ireland, sales rose by 7%, sustained by strong like-for-like sales, particularly in the Rail channel, and despite the London Underground strike which disrupted passengers for a week in early September and which impacted like-for-like sales growth by c.(0.5)%.

In APAC and EEME, sales grew by 12%, driven by 8% net gains and by strong like-for-like growth in Australia and Malaysia. However, this was partially offset by lower-than-expected growth in India due to temporary reductions in air capacity and the Middle East following the impact of geopolitical tensions across the regions earlier in the summer.

Full year 2025 sales and profit expectations

For the full year, on a constant currency basis, group revenue was c.£3.7bn, up c.8% year-on-year, comprising like-for-like sales growth of c.4%, net contract gains of c.4%, a contribution from acquisitions of c.2% and a combined impact of (2)% principally from the previously announced staged exit of the German Motorway Services business and the deconsolidation of joint venture with Adani Airport Holdings Limited in India.

On a constant currency basis, SSP Group is on track to deliver operating profit of c.£230 million, up c.11% year-on-year, with a corresponding margin of c.6.2%, up c.20bps and with EPS of c.12.3p (in the middle of the previously announced planned range of 11.5p-13.5p).

At actual exchange rates, full year EPS, at c.11.5p, is expected to be in line with current market expectations, including a lower-than-expected effective tax rate and interest charge.

As a result of sales growth and SSP’s focus on cost efficiency, the group expects to see operating profit growth in all regions. However, while performance in Continental Europe has gained momentum, it does not expect profitability for the region in the year to be where it had originally planned it to be. SSP expects its FY25 operating profit margin for the region to be c.2.0% (up from 1.5% in the prior year). Further initiatives already in-flight in the region include; additional cost reductions, substantial rent restructuring and further reduced capital spend. More detail on these initiatives will be shared at the Preliminary Results in December.

Full year cash flow and leverage expectations

As a result of a strong anticipated second half cash performance, driven by working capital initiatives and after disciplined capital investment (c.£220m for the full-year), net debt is expected to be below £600 million, leaving leverage at approximately 1.6x net debt/EBITDA, towards the lower end of our medium-term target range of 1.5-2.0x.

Full year 2026 expectations

According to the report, “while there remains a substantial level of uncertainty in the demand outlook across some travel markets, our actions to enhance operational delivery and tighten our cost base will enable us to make good progress on earnings, cashflows and returns into FY26. Progress will be underpinned by the full year effect of a substantial group-wide overhead cost reduction program that was actioned in the second half of FY25 and the anticipated benefit of the actions we are taking to improve profitability in France and Germany”.

As a result of these plans, on a constant currency basis, SSP Group currently expects to deliver EPS for FY26 within the current range of market expectations.

“We continue to expect that our total level of capital expenditure in FY26 will be less than £200 million, with growth capex consistent with an expected level of net gains (excluding MSA site exits) in the year of c.2%.”

The Group’s results for the year ending 30 September 2025 are expected to be released on December 4, 2025.