SSP Group PLC

Latest Results (04.03.2026):

SSP Group PLC — Half Year (H1) 2025 results (covering Q1 & Q2 to 31 March 2025): the group delivered revenue growth and improved underlying operating performance, while statutory (IFRS) results were hit by non‑underlying charges. Revenue was £1.66bn (up 9% at actual rates / 12% constant currency) and underlying pre‑IFRS 16 operating profit rose to £45m (up 20% actual / 31% constant). Free cash outflow was £161m (seasonal), pre‑IFRS 16 net debt was £764m (leverage ~2.2x) and the Board maintained full‑year guidance and increased the interim dividend to 1.4p per share.

Headline financials

Revenue £1,661m (+9% actual / +12% constant); underlying EBITDA (pre‑IFRS16) £114m; underlying pre‑IFRS16 operating profit £45m (margin 2.7% vs 2.5% prior year). Interim dividend 1.4p (up 0.2p).

IFRS vs underlying impact

Statutory IFRS operating profit was £15m (down 74% YoY) and IFRS loss per share was 7.7p (2024: loss 1.3p) after c.£52.5m of non‑underlying items — mainly impairments (£24.5m) and IT transformation accounting adjustments (~£27.0m), partly offset by a £1.6m derecognition credit in Switzerland.

Cash, debt and leverage

H1 free cash outflow £161m (improved vs £240m prior year) reflecting seasonal working capital and first‑half capex phasing; pre‑IFRS16 net debt £764m (up £145m vs prior H1 seasonality) giving ~2.2x net debt/EBITDA. IFRS net debt including lease liabilities was £1,907m. Management expects strong H2 cash generation and to move leverage toward the lower end of the 1.5–2.0x target by year‑end.

Guidance and outlook

Full‑year guidance maintained: revenue £3.7–3.8bn, underlying pre‑IFRS16 operating profit £230–260m and EPS 11.5–13.5p (constant currency). At current FX (13 May 2025) EPS would be ~11–13p. Group like‑for‑like sales were +5% in the first six weeks of H2; management is accelerating margin, cost and cash initiatives amid macro uncertainty.

Regional performance highlights

North America: sales +13% (strong net gains/acquisitions), margin pressured by comparison effects. Continental Europe: sales +3%, operating margin improving with a turnaround programme (aiming ~3% margin in FY25, ~5% medium‑term). UK: sales +9% with strong LFL +8% and margin improvement. APAC & EEME: sales +38% (LFL +13%), margin strong at 11.8% but down YoY partly due to deconsolidation of the Indian AAHL JV.

Capital allocation and returns

Capex guidance tightened to <£230m in FY25 and <£200m in FY26, prioritising returns and targeting net gains of 2–4% p.a. Management expects improved free cash flow H2 and may consider a share buyback toward year‑end if cash generation permits. ROCE target c.20% by FY27 and dividend payout c.30–40% of underlying earnings.

Corporate developments

Planned IPO of Travel Food Services (TFS) in India has received ‘in principle’ SEBI clearance and is targeted to complete in the Summer; SSP plans to buy an incremental 1.01% of TFS at a price linked to the IPO to maintain control and consolidation.

Management actions

Management is accelerating a group‑wide overhead reduction programme, cost‑efficiency and margin improvement initiatives (menu standardisation, workforce management, supply chain), plus a specific five‑point recovery plan for Continental Europe and selective exits of loss‑making contracts (e.g., staged German MSA exit).