SSP reports resilient FY25 results and strong momentum entering FY26

SSP Group plc, a leading operator of food and beverage outlets across 38 countries, announced its preliminary financial results for the year ended 30 September 2025. The company delivered solid revenue growth, improved margins, and a return to positive free cash flow, despite ongoing macroeconomic headwinds affecting global travel markets.

Financial performance: strong growth in revenue, EPS and free cash flow

SSP reported revenue of £3.6 billion, an 8% increase on a constant currency basis, supported by 4% like-for-like growth and 4% net gains. Underlying operating profit reached £233 million on a constant currency basis, up 13% year-on-year, with margin accretion of 30 basis points. At actual exchange rates, operating profit totalled £223 million.

Free cash flow (pre-dividend) reached £80 million, driven by a £99 million working capital inflow and capital expenditure of £212 million, significantly lower than the £280 million recorded last year. Net Debt/EBITDA improved to 1.6x, down from 1.7x, placing the group at the lower end of its guided range of 1.5x–2.0x.

Earnings per share (EPS) rose to 11.9p from 10.0p, with EPS up 25% on a constant currency basis to 12.5p, aligning with the midpoint of the company’s planned range. The Board proposed a full-year dividend of 4.2p, up from 3.5p, reflecting confidence in future cash generation.

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Return on capital employed (ROCE) reached 18.7%, rising 100 basis points year-on-year, supported by recent acquisitions performing in line or ahead of expectations. A £100 million share buyback programme was initiated in October 2025. The IFRS operating profit for the year was £86 million, impacted by £183 million in non-underlying expenses and impairment charges.

Strategic actions and operational transformation

SSP continued to execute strategic initiatives aimed at strengthening its operating model and improving profitability. Highlights include:

• Completion of the IPO of the TFS joint venture in India, with SSP retaining a 50.01% stake.
• Corporate and regional overhead restructuring, delivering £30 million in annualised savings (£5 million realised in FY25).
• Strong renewal performance with an 80% renewal rate and 4% net gains.
• Revised plan for Continental Europe targeting operating margin improvement from 2.2% to 3.0% in FY26.
• A wide-ranging review of the Continental European rail business.
• Board evaluation of options to unlock shareholder value following the TFS free-float requirement.

CEO statement: resilient performance and clear path forward

Patrick Coveney, Group CEO, commented: “We have delivered a resilient financial performance this year, with revenue and EPS up 8% and 25% respectively, on a constant currency basis, and a pivot to positive free cash flow. As a result of our actions in the year including an ongoing focus on cost efficiency, we saw strong trading across three of our four regions. However, we acknowledge there is more to do to strengthen our operational performance, most notably in Continental Europe where we have now reset our team, model and balance sheet, and have a range of initiatives underway to do so.

We have made an encouraging start to FY26, with LFL sales growth now positive in all regions and tracking at 4% year-to-date for the group as a whole. This early momentum, together with the specific actions that we are taking to deliver sustained improvements in profit, cash and return on capital, gives us increasing confidence in our prospects for the coming year.”

FY26 outlook: stronger momentum and operational delivery

Since the start of FY26, SSP’s trading momentum has accelerated. During the first eight weeks of the year (1 October–25 November), revenue increased 6% year-on-year on a constant currency basis, including like-for-like growth of 4%, driven particularly by improving momentum in North America.

Despite continued uncertainty in certain travel markets, the Group remains confident in its ability to deliver towards the upper end of its EPS guidance range (12.9p–13.9p at October spot rates), excluding the impact of the share buyback programme. Free cash flow (pre-dividend) is expected to exceed £100 million, while ROCE is projected to move closer to the medium-term target of 20%.

With its “Focus 26” operational plan and a strengthened financial position, SSP is positioned to deliver improved profitability, enhanced cash generation and sustained value creation for shareholders in the year ahead.

The article SSP reports resilient FY25 results and strong momentum entering FY26 first appeared in TravelDailyNews International.

The post SSP reports resilient FY25 results and strong momentum entering FY26 appeared first on Travel Daily News