SSP Group Reports Encouraging Q1 Momentum with 5% LFL Sales Growth, Guidance Unchanged

SSP Group Q1 Trading Update: 5% LFL Growth, Guidance Reaffirmed

SSP Group has kicked off FY26 with steady progress. Like-for-like (LFL) sales – which measure sales growth from existing sites, excluding openings and closures – were up 5% in Q1 (the three months to 31 December 2025). Total sales at constant currency rose 6%, and the Board kept full year guidance unchanged. That combination usually signals management confidence without overpromising.

There is a clear pattern by region: solid growth in the UK & Ireland, strong momentum in APAC, modest gains in North America, and a tougher backdrop in Continental Europe. The portfolio reshaping continues too, with the exit of unprofitable German motorway service areas and an accounting change in India tempering reported growth.

Key Numbers You Need To Know

Metric	Q1 FY26
Group LFL sales growth	+5%
Group total sales growth (constant FX)	+6%
Group total sales growth (actual FX)	+6%
North America total sales (constant FX)	+4% (LFL +1%, net gains +3%)
Continental Europe total sales (constant FX)	+1% (LFL +2%, net gains +1%, other -2%)
UK & Ireland total sales (constant FX)	+8% (LFL +8%)
APAC & EEME total sales (constant FX)	+17% (LFL +10%, net gains +9%, other -2%)
Share buyback completed to date	£24m of £100m
FY26 EPS guidance	Towards the upper end of 12.9p – 13.9p (Oct-25 FX rates, excluding buyback benefit)
FY26 free cash flow (pre-dividend)	>£100m
ROCE trajectory	Further progress towards 20% medium-term target

Regional Performance: Where The Growth Is

UK & Ireland: Strong LFL and a sharper proposition

Sales rose 8% (constant currency), entirely driven by LFL. Management highlighted strong performances in Air and the M&S estate across both Air and Rail. The refresh and renewal programmes seem to be paying off with a stronger customer proposition. This is reassuring given the macro wobbles hitting UK consumers in recent years.

APAC & EEME: High-growth and higher margin tailwinds

APAC & EEME delivered a standout +17% total sales growth (constant currency), with LFL up 10% and chunky net gains of 9%. The quarter benefited from more normalised air capacity in India and sustained strong LFL in Australia. This region is higher margin for SSP, so growth here packs an extra punch for profitability.

North America: Expansion offsetting LFL volatility

North America grew 4% (constant currency). LFL was up 1%, while net gains added 3% as SSP expanded within the 57 airports where it operates. The company flagged seasonal fluctuations and the US government shutdown as causes of LFL volatility – a reminder that external factors can still nudge short-term numbers around.

Continental Europe: Rail drag and cautious consumers

Continental Europe managed +1% total sales growth (constant currency), with LFL up 2%. Weak consumer sentiment and lower spend in several markets hurt, particularly in Rail. Management is already running a wide-ranging review of the Rail business here, which is the right move in a tougher end market.

What’s Behind the ‘Other’ Adjustment?

The ‘Other’ line reduced reported sales in some regions. Two drivers are at play: the staged exit of the unprofitable German MSA (motorway service area) business and a change in India where certain sales are now treated as associate sales rather than consolidated. In plain terms, this cleans up the portfolio and slightly lowers the reported top line, but it should improve quality and margins over time.

Guidance Unchanged: Reading the Signal

SSP kept FY26 guidance unchanged, reiterating delivery towards the upper end of EPS of 12.9p – 13.9p at October 2025 FX spot rates, excluding any boost from the buyback. Free cash flow (pre-dividend) is targeted at more than £100m, and return on capital employed (ROCE) – a measure of how efficiently profits are generated from capital invested – is set to make further progress towards the 20% medium-term goal. Management also noted currency impacts since October 2025 are broadly unchanged.

In my view, reaffirming guidance alongside 5% LFL growth is quietly confident. It suggests that cost control and operational execution under the ‘Focus 26’ plan are tracking to expectations without relying on macro heroics.

Share Buyback: £24m Done, EPS Accretion To Come

SSP has completed £24m of the £100m buyback launched in October 2025. Buybacks reduce the share count, which typically supports earnings per share over time. Notably, the EPS guidance excludes the expected benefit of the buyback, leaving some potential upside if trading holds up.

Positives, Watch-outs, and Why It Matters

What looks positive

• Broad-based LFL growth (+5%), with UK & Ireland and APAC leading.
• APAC growth is both strong and strategically attractive given its higher margin profile.
• Portfolio clean-up continues, exiting unprofitable German MSA operations.
• Guidance intact at the upper end of the EPS range, with >£100m free cash flow targeted.

What to watch

• Continental Europe Rail – weaker spend and a business under review may weigh on near-term momentum.
• North America LFL volatility – external factors like the US government shutdown can distort short-term comps.
• Accounting changes in India and exits can trim reported sales in the near term even if margin accretion is the goal.

Why it matters: SSP’s model relies on passenger volumes and site-level execution. With air travel normalising in key markets and the estate being pruned and upgraded, the ingredients are there for improving cash generation and returns. The ‘Focus 26’ plan is the operating backbone, and we will get a fuller update at the H1 results on 19 May 2026.

Constant Currency vs Actual: A quick explainer

SSP gives sales growth at constant FX to strip out currency moves and show the underlying business trend. Actual FX includes real-world currency translation. In Q1, both came in at +6% for the Group, so currency wasn’t a swing factor this time.

My Take: A tidy start to FY26

This is a sensible, no-drama update. LFL is growing, APAC is accelerating, and the UK & Ireland looks resilient. North America is expanding its footprint, and Europe is the main area to fix – a review is underway. With guidance reiterated and a buyback ticking along, SSP feels set up for steady delivery rather than fireworks.

If they maintain this pace and deliver on ‘Focus 26’, the combination of improving ROCE, >£100m free cash flow and potential EPS accretion from the buyback should support the investment case into the second half.