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, demonstrating resilience in a challenging macro environment.

• Full-year revenue reached approximately £3.7bn, up 8% year-on-year, with operating profit expected at £230m, an 11% increase, and operating margin at 6.2%.

• Earnings per share for the full year anticipated at 11.5p at actual exchange rates (up 15% YoY) and 12.3p on a constant currency basis, in line with market expectations.

• Regional performance varied: North America saw 4% sales growth, UK and Ireland 7%, Asia-Pacific and Middle East 12%, while Continental Europe declined 3% due to strategic exits and tough market conditions.

• Return on capital is expected to improve from last year's 17.7%.

Strategic actions and outlook

• Announced and launched a £100 million share buyback, reflecting strong cash generation and leverage at the lower end of the 1.5–2x target range.

• FY26 earnings per share are expected to be within the current market expectations, supported by cost reduction and operational improvements.

• Continental Europe margin targeted to exceed 3% in FY26, with a medium-term goal of 5%, driven by ongoing restructuring and cost initiatives.

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

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

Regional and operational updates

• North America continues to expand, now present in 56 airports, with a focus on maximizing returns from recent large airport entries rather than rapid expansion.

• UK and Ireland delivered strong growth despite disruptions, with M&S partnership recovering from a cyber incident and strong rail channel performance.

• Asia-Pacific and Middle East performance was robust, offsetting temporary softness in India due to air capacity issues, which are now recovering.

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

• Cost and productivity improvements are central to margin recovery, especially in France and Germany, with contingency plans in place for further market weakness.