SSP Group Shares Rally: Sees Annual EPS at Higher End of Guidance Range

SSP Group PLC (LON: SSPG) shares jumped at the open on Thursday after the company announced resilient full-year results for the year ended September 30, 2025, showcasing revenue and profit growth.

The company, a leading operator of food and beverage outlets in travel locations, is focusing on accelerating shareholder value delivery in FY26.

Revenue reached £3.639 billion, up 6.0% at actual FX rates and 8% on a constant currency basis, driven by a like-for-like (LFL) growth of 4% and net gains of 4%. Operating profit stood at £223 million, a 12.7% increase at actual FX rates, or £233m on a constant currency basis, marking a margin accretion of 30 basis points year-over-year.

Earnings per share (EPS) increased to 11.9p, up from 10.0p in the previous year, reflecting a 25% increase on a constant currency basis to 12.5p. Free cash flow (pre-dividend) was reported at £80 million. The company also proposed a full-year dividend of 4.2p, up from 3.5p the prior year, indicating confidence in future cash generation.

Pre-tax return on capital employed (ROCE) rose to 18.7%, a 100 basis point increase year-over-year, with recent acquisitions performing in line with or ahead of expectations. A £100 million share buyback program was initiated in October 2025.

The company completed the IPO of its TFS JV business in India in July, with SSP's stake now at 50.01%. A corporate and regional overhead restructuring plan delivered £30 million in annualised savings, with £5 million realised in FY25. SSP also maintains strong renewal and net gains momentum with a renewal rate exceeding 80% and net gains of 4%.

SSP is targeting EPS towards the upper end of the expectations set in October (12.9p-13.9p), further strengthening ROCE, and free cash flow (pre-dividend) of >£100m in FY26. A wide-ranging review of the Continental European Rail business has been launched, and the board will consider options to realise value for SSP shareholders in line with delivery of the TFS free float requirement.

Patrick Coveney, Group CEO, stated, “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.” He added that the company is focusing on cost efficiency and strengthening operational performance, especially in Continental Europe.

Trading momentum has continued into FY26, with total revenue up 6% year-on-year on a constant currency basis for the first eight weeks (October 1 to November 25). This includes LFL growth of 4%, driven by improved momentum in North America.

The company expects to improve free cash flow (pre-dividend) to >£100m in FY26 and further progress in ROCE towards its medium-term target of 20%. Capital expenditure in FY26 is expected to be no higher than £200 million.

SSP is focused on driving profitable organic growth and contract retention, executing its revised recovery plan for Continental Europe, delivering group-wide cost efficiencies, building returns from recent investments, and strengthening free cash flow.

A review of Continental European Rail business will consider all potential options, with an update expected on or before the interims in May 2026. The Board will also explore options to realise value for SSP shareholders in line with the delivery of the TFS free float requirement.

SSP's medium-term framework aims for sustainable growth and enhanced shareholder returns through revenue growth, profit conversion, cash flow generation, and new business development in structurally growing markets.