SSP Group (SSPG) H2 2024 earnings summary

Executive summary

• FY24 revenue grew 17% to £3.4 billion, with underlying operating profit up 32% to £206 million and EPS up 41% to £0.10.

• Strong performance in North America, Asia/Middle East, and UK, while Continental Europe underperformed but has a recovery plan.

• Net debt reduced to £593 million, leverage at 1.7x, and a proposed full-year dividend of £0.035 per share (35% payout ratio).

• FY25 focus on driving returns from recent investments, improving European profitability, and aligning management incentives with shareholder returns.

Financial highlights

• FY24 sales reached £3.4 billion, up 17% year-on-year; underlying operating profit £206 million (+32%), EPS £0.10 (+41%).

• EBITDA rose 28% to £343 million; IFRS 16 operating profit was £247 million.

• Net profit of £80 million, driven by a strong second half.

• Dividend per share increased by 1.0p to 3.5p; payout ratio at 35%.

• Group ROCE increased to 17.7% from 17.0%.

Outlook and guidance

• FY25 sales expected at £3.7–3.8 billion, with 4–5% like-for-like growth, 4% net gains, and 2–3% from acquisitions.

• Operating profit guidance for FY25: £230–260 million; EPS guidance: £0.11–0.13.

• Capex to be reduced to £230–240 million; focus on profitable organic growth and cash flow improvement.

• Target net debt/EBITDA range of 1.5–2.0x maintained.

• Medium-term: annual sales growth of 5–7%, sustainable margin enhancement of 20–30bps per year post-FY25, and double-digit EPS growth.