SSP Group PLC

Latest Results (27.05.2026):

SSP Group PLC — H1 2025 (half year ended 31 March 2025, covering Q1 and Q2 of FY25): SSP delivered revenue growth and improved underlying operating performance in the first half, while reporting a statutory loss driven by non‑underlying IT transformation costs and impairments; management has maintained full‑year guidance and is accelerating cost, profitability and capital‑discipline programs.

Financial headlines

Revenue £1,661m (up 9% actual, 12% constant currency); underlying pre‑IFRS16 EBITDA £114m; underlying pre‑IFRS16 operating profit £45m (up 20% actual, 31% cc) with an operating margin of 2.7% (vs 2.5% prior year). Free cash outflow £(161)m (improved vs £(240)m H1 2024).

Statutory vs underlying

IFRS statutory operating profit £15m (down 74% YoY) and statutory loss per share 7.7p, mainly due to non‑cash IT transformation charges and impairments (notably France and Italy). Underlying (pre‑IFRS16) loss per share improved to (0.4)p from (1.0)p a year earlier.

Cash, debt and capital

Pre‑IFRS16 net debt £764m (seasonally higher; net debt/EBITDA c.2.2x). IFRS16 net debt including leases £1,907m. Capex guidance tightened to <£230m for FY25 and planned <£200m for FY26. Management expects strong H2 cash generation and aims to reduce leverage toward the lower end of the 1.5–2.0x target range and may consider a share buyback later in the calendar year.

Guidance and near‑term outlook

Full‑year guidance maintained: revenue £3.7–3.8bn; underlying (pre‑IFRS16) operating profit £230–260m; EPS 11.5–13.5p on a constant currency basis (11–13p at current FX). Group like‑for‑like sales +5% in the first six weeks of H2, with regional variation (UK and APAC strong; North America softer following geopolitical events).

Regional performance highlights

North America: sales +13% (strong net gains/acquisitions), margin pressured but improving after prior Covid provisions adjustments. Continental Europe: sales +3%, still loss‑making but a turnaround plan aims to raise margin from ~1.5% (FY24) to ~3% in FY25 and ~5% medium‑term. UK: sales +9% (LFL +8%), margin +120bps YoY. APAC & EEME: sales +38% (LFL +13%), strong but margin down as result of deconsolidation of AAHL JV in India.

Actions to improve returns

Accelerated group‑wide cost reduction programme (overheads, COGS, labour productivity), targeted turnaround in Continental Europe (restructuring, exits of low‑return MSAs), tighter capital allocation, deprioritised near‑term M&A, and a focus on delivering returns from recent investments to lift ROCE (target ~20% by FY27).

Corporate and other items

TFS (Travel Food Services, India) IPO has received ‘in principle’ SEBI clearance and is targeted to complete in Summer 2025; SSP plans to buy an additional c.1.01% of TFS to maintain control post‑IPO. Interim dividend increased to 1.4p (up 0.2p) and will be paid subject to shareholder approval.