SSP Group (SSPG) Trading Update summary

Trading performance and financial highlights

• Q4 sales grew 4% year-on-year at constant currency, with 2% like-for-like growth, and net contract gains of 3%.

• Full-year revenue reached approximately £3.7bn, up 8% year-on-year.

• FY24 operating profit expected at approximately £230 million, up 11% year-on-year, with a margin of about 6.2%, at the lower end of guidance.

• Full-year earnings per share anticipated at 11.5p (up 15%), in line with market expectations, and 12.3p on a constant currency basis.

• Leverage (Net Debt/EBITDA) is expected to reduce to about 1.6x, driven by strong free cash flow and disciplined capital investment.

Regional and operational insights

• North America saw 4% sales growth, driven by net gains despite a 2% like-for-like decline due to lower passenger numbers, and is now present in 56 airports.

• UK & Ireland sales rose 7%, led by strong rail channel performance and recovery from disruptions.

• Asia-Pacific and Middle East sales increased 12%, with strong growth in Australia and Malaysia, partially offset by weaker performance in India and the Middle East.

• Continental Europe sales declined 3%, impacted by strategic exits and weak demand in France and Germany.

• Recent acquisitions in the US, Canada, Australia, and Indonesia are performing above expectations, delivering IRRs above 20%.

Strategic actions and outlook

• Announced and launched a £100 million share buyback, reflecting confidence in future cash generation and a healthy balance sheet.

• FY26 earnings per share are expected within the current market range, underpinned by cost reduction programs and operational improvements, especially in Continental Europe.

• Continental Europe margin targeted to exceed 3% in FY26, with a medium-term goal of 5%, driven by granular plans and leadership changes.

• Capital investment for FY26 planned at less than £200 million, focusing on higher-return regions and scaling back in lower-returning areas.

• No change to midterm 5%-7% constant currency sales growth guidance, but expectations are for the lower end of the range due to a cautious macro outlook.