SSP Group Reports Q4 Trading Update and Launches £100m Share Buyback

Region	LFL	Net gains	Other	Total (constant FX)	Total (actual FX)
North America	(2)%	6%	–	4%	0%
Continental Europe	1%	0%	(4)%	(3)%	(1)%
UK & Ireland	6%	1%	–	7%	8%
APAC & EEME	6%	8%	(2)%	12%	9%
Group	2%	3%	(1)%	4%	3%

Quick take on each region

• North America: +4% growth (constant currency), driven by 6% net gains as SSP expanded to 56 airports. Like-for-like sales fell (2)% due to softer passenger numbers.
• Continental Europe: down (3)% as SSP exits unprofitable German MSA sites. LFL was modestly positive at 1%, but weak consumer spend in French and German rail weighed. Margin for the region is expected at c.2.0% in FY25, with a plan to exceed 3.0% in FY26 and build towards 5% medium term.
• UK & Ireland: solid at +7%, with strong rail trading despite a one-week London Underground strike that clipped like-for-like growth by c.(0.5)%.
• APAC & EEME: standout at +12%, powered by 8% net gains and strong LFL in Australia and Malaysia. India saw slower growth due to temporary air capacity cuts, and the Middle East was affected by geopolitical tensions earlier in the summer.

Full-year picture: steady progress despite headwinds

For FY25, revenue of c.£3.7 billion reflects c.4% like-for-like growth and c.4% net contract gains, plus c.2% from acquisitions, partly offset by a combined (2)% impact from the staged German MSA exit and the deconsolidation of the Adani India JV.

Operating profit is expected at c.£230 million with a c.6.2% margin, both up year-on-year. EPS should be c.12.3p at constant currency (the middle of the 11.5p-13.5p range) and c.11.5p at actual exchange rates, helped by a lower-than-expected effective tax rate and interest charge.

Cash generation was strong in H2, aided by working capital initiatives and tighter capex. That underpins leverage of roughly 1.6x and gives management room to focus on shareholder returns and selective growth.

What’s improving, and what still needs work

Positives

• Cash discipline: net debt expected below £600 million and leverage down to ~1.6x.
• Shareholder returns: a £100 million buyback confirms confidence in FY26.
• Operational delivery: overhead cost reductions in H2 should support margins into FY26.
• UK and APAC momentum: strong rail in the UK and double-digit growth in APAC & EEME at constant currency.

Watch-outs

• Continental Europe: profitability is improving but below plan; heavy lifting in France and Germany continues. The FY26 aim is >3.0% operating margin, with a medium-term target of 5%.
• North America like-for-like: LFL down (2)% on softer passenger flows, despite healthy net gains.
• FX and demand risk: if current spot rates hold, FY26 could see a negative currency impact of approximately (0.3)% on revenue and (1.6)% on operating profit versus FY25 average rates. Management also notes uncertainty in some travel markets.

FY26 outlook: EPS within market expectations and lower capex

SSP expects FY26 EPS to land within the current range of market expectations (12.9p to 13.9p, excluding one outlier). That should be backed by a full-year effect from H2 FY25 overhead reductions and the early benefits from the France/Germany programme.

Capex is expected to be less than £200 million in FY26, with net contract gains around c.2% (excluding the German MSA exits). The strategy remains clear: drive profitable sales, lift returns from recent openings, improve underperforming markets, and keep a tight focus on free cash generation.

My take: resilient execution, cash to return, Europe still the swing factor

This is a tidy update in a choppy market. EPS is in line, margins are nudging higher, and leverage is back to comfort levels. The £100 million buyback is a positive signal on confidence and cash generation.

The rub is Continental Europe. The building blocks are there – cost cuts, rent restructuring, and reduced capex – but delivery needs to accelerate to hit the >3% margin target next year and build towards 5%. North American LFL also bears watching if passenger softness lingers.

Overall, SSP is doing the right things: pruning low-return businesses, pushing net gains where returns stack up, and prioritising cash. If Europe follows the plan, FY26 could show cleaner through-the-P&L progress even if demand stays mixed.

Jargon buster

• EPS: earnings per share – profit attributable to each share.
• Like-for-like (LFL): sales growth from existing sites, excluding new openings and closures.
• Net contract gains: growth from new contract wins minus losses.
• Leverage (Net debt/EBITDA): a measure of indebtedness relative to earnings.
• Constant currency: financials recalculated using prior-period exchange rates to strip out FX moves.
• ROCE: return on capital employed – a measure of efficiency and returns on invested capital.

What to watch next

• 4 December 2025: preliminary results – more detail on France and Germany initiatives and FY26 cost savings.
• Pace and pricing of the £100m buyback.
• Passenger trends in North America and recovery momentum in India and the Middle East.
• Further rent restructuring and cost savings in Continental Europe.