SSP Group plc ('SSP' or 'the Group'), a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 38 countries, issues a Trading Update for both the final quarter ('Q4') and its financial year ended 30 September 2025 ('FY25').
SSP remains on track to deliver earnings per share for the full-year in the middle of the previously published planned range1 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 today announces the initiation of a GBP100m share buyback, consistent with our capital allocation strategy, reflecting our healthy balance sheet position and highlighting the Board's confidence in our prospects into FY26.
Performance headlines 2
FY revenue of c.GBP3.7bn, up c.8% YoY, with FY operating profit expected to be c.GBP230m, 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 our medium-term target range of 1.5-2.0x as planned and given our confidence in our cash generation prospects into FY26, we are today initiating a share buyback of GBP100m
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 our 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 GBP100m share buyback programme 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 recognise 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.
See full release at: https://www.foodtravelexperts.com/news-and-insights/2025/fourth-quarter-trading-update/
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