2025 full year results announcement

RESILIENT PERFORMANCE IN FY25

FOCUS ON ACCELERATING DELIVERY OF SHAREHOLDER VALUE IN FY26

SSP Group plc (“SSP” or “the Group”), a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 38 countries, issues its financial results for the year ended 30 September 2025.

Financial Highlights (underlying pre-IFRS 16, unless otherwise stated)

·       Revenue: £3.6bn, up 8% (on a constant currency basis), with LFL growth of 4% and net gains of 4%

·       Operating profit: £223m at actual FX rates; £233m on a constant currency basis, up 13% with margin accretion of 30 bps YoY

·       Free cash flow³: £80m (pre-dividend) after £99m working capital inflow and capex of £212m (vs. £280m LY)

·       Net Debt/EBITDA⁸: 1.6x, improved from 1.7x LY, at lower end of 1.5-2.0x guided range

·       EPS: 11.9p, up from 10.0p LY, with one-off trading headwinds and benefits in operating profit broadly balanced; EPS up 25% on a constant currency basis (to 12.5p - in middle of our planned range)

·       Proposed full-year dividend: 4.2p (LY: 3.5p), reflecting confidence in future cash generation

·       Pre-tax ROCE⁶: 18.7%, up 100bps YoY, with recent acquisitions delivering in line or ahead of plan

·       Capital allocation: £100m share buyback initiated in October 2025

·       IFRS operating profit: £86m (LY: £206m) reflecting £183m of non-underlying expenses and impairment charges

Strategic Actions

·       IPO of TFS JV business in India completed in July with SSP stake now at 50.01%

·       Corporate and regional overhead restructuring plan delivered in H2, with £30m annualised saving (of which £5m benefit realised in FY25)

·       Strong renewal and net gains momentum, with >80% renewal rate and net gains of 4%

·       Driving further margin improvement in the Group; in Continental Europe, revised plan to deliver operating margin increase from 2.2% in the year to >3.0% in FY26

·       Plan to accelerate shareholder value delivery in FY26, 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

·       Wide-ranging review of Continental European Rail business⁷ launched

·       Board to consider options to realise value for SSP shareholders in line with delivery of TFS free float requirement

 

Patrick Coveney, Group CEO, said:

“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.  As a result of our actions in the year including an ongoing focus on cost efficiency, we saw strong trading across three of our four regions.

However, we acknowledge there is more to do to strengthen our operational performance, most notably in Continental Europe where we have now reset our team, model and balance sheet, and have a range of initiatives underway to do so. In addition, we are announcing today the launch of a wide-ranging review of our rail business in Continental Europe. We are also considering options to realise value for our shareholders in line with the delivery of the TFS free float requirement.

While there remains a degree of macro-economic uncertainty across the world, our focus is on what we can control. We have made an encouraging start to FY26, with LFL sales growth now positive in all regions and tracking at 4% year-to-date for the group as a whole. This early momentum, together with the specific actions that we are taking to deliver sustained improvements in profit, cash and return on capital, gives us increasing confidence in our prospects for the coming year.”

FY26 Outlook

Since our year-end, trading has gained momentum, with total revenue during the first eight weeks (from 1 October to 25 November) up 6% year-on-year on a constant currency basis. This includes LFL growth of 4%, up from 2% in H2 FY25 most notably driven by improved momentum in North America with LFL of 2% in the eight weeks, up from (2)% in H2 FY25. More detail can be found on page 10.

While there remains a substantial level of uncertainty in the demand outlook across certain travel markets, the Group is well placed to navigate these challenges. The strength of our current trading momentum, together with additional actions taken to drive performance through our ‘Focus 26’ operational plan, described below, gives us confidence in delivering towards the upper end of the EPS range referenced at the Q4 Trading Update (i.e. 12.9p – 13.9p at October spot rates), excluding the expected benefit of the share buyback.

Furthermore, we expect to improve free cash flow (pre-dividend) to >£100m in FY26. In addition, as we tightly manage our capital allocation, we expect further progress in ROCE towards our medium-term target of 20%.

Additional technical guidance, including the latest currency impacts, can be found in the supplementary detail section on page 9.

Board Actions

Twelve months ago, the Board and management team launched a series of actions to drive improved performance across the Group. FY25 has been a year of execution and progress against key initiatives.

As we seek to accelerate the delivery of value for shareholders and in light of the disappointing pace of performance recovery in the Continental European business in particular, the Board broadened the scope of this year’s financial and strategy planning cycle to identify additional sustainable value-driving initiatives. This process commenced in summer 2025, and assessed a number of areas including further cost reduction opportunities, improved cash conversion, portfolio optimisation, our value creation from our listed India business (TFS), options to accelerate returns on capital, and the level and timing of share buybacks. The feasibility of further opportunities to create value for shareholders beyond these initiatives were also considered, with support from external advisers.

Throughout this process, the Board has carefully considered the views of our shareholders. The Board has worked closely with the management team on the operational plans and strategic levers that have been announced today (set out in further detail below), and remains resolutely focused on delivery against these plans.

On 10 November 2025, we announced that Mike Clasper CBE intends to step down as both Chair and Director following the Company’s 2026 AGM on 23 January 2026, a year earlier than planned, enabling a new Chair to support realisation of these multi-year plans. The process for the appointment of a successor is underway, led by Carolyn Bradley, Senior Independent Director. If a successor has not been appointed by the 2026 AGM, Carolyn will become Interim Chair.

During this period of transition to a new Chair, the Board has formed the ‘Focus 26’ Review Committee, which will provide appropriate oversight, support and challenge to the management team.

The Board regularly reviews its composition to ensure it remains well positioned to support the Group’s priorities. In the year, governance and capability was strengthened with the appointment of Karina Deacon as a new Non-Executive Director who, as a former public company CFO, has a strong financial background and also brings extensive experience in travel and services aligned with our markets. The Board is now actively looking to appoint a new Non-Executive Director with significant industry and relevant operational experience to further widen its expertise. The timing of this new director being appointed is being carefully considered in the context of the ongoing search process for the Chair.

FY26: Improving value delivery for shareholders

We have defined a focused operational plan to strengthen performance, building on the priorities set out in December 2024, alongside two additional levers – a wide-ranging review of our Continental European Rail business7, and the consideration of options to realise value for SSP shareholders in line with the delivery of the TFS free float requirement.    

Our ‘Focus 26’ operational plan to drive profit, cash and returns

·       Drive profitable organic growth and contract retention, prioritising high growth and high returning markets, targeting mid-single digit sales growth

·       Execute our revised recovery plan for Continental Europe, increasing regional operating profit margin from 2.2% to >3% in FY26, rising to c.5% in the medium-term

·       Deliver group-wide cost efficiencies across our cost base, particularly as we reset sub performing units and contracts; embed our recent corporate and regional overhead restructuring plan which will deliver an annualised saving of £30m (of which £5m in FY25, and the remainder in FY26), and assess further efficiency opportunities to underpin profit growth in an uncertain demand environment

·       Build returns from recent investments and tighten new capital investment, with a further year-on-year reduction in capital investment from £212m in FY25 to no more than £200m in FY26; ongoing de-prioritisation of M&A

·       Strengthen free cash flow (pre-dividend) to >£100m through operating performance, working capital initiatives and disciplined capital allocation - prioritising profitable organic growth and shareholder returns

Aligned with these financial aspirations, we are updating the metrics used in the Annual Bonus Plan for our Executive Directors.  Components within the plan in FY25 were operating profit (60% of award), EPS (20% of award) (both on a pre-IFRS 16 underlying basis) and strategic objectives (20% of award). In FY26, 100% of the award will be determined by financial delivery. The operating profit component, now adjusted to be after deductions for minority interests and additions of associates, will represent 40% of the overall award.  EPS will remain in the plan and this year will represent 30% of the overall award. In addition, a free cash flow component will be introduced which will represent 30% of the overall award. 

The Annual Bonus Plan complements the Performance Share Award which was introduced last year, which seeks to closely align stretching long-term incentives with medium-term financial targets based on EPS, ROCE and TSR.

Additional levers for value creation

1)      Wide-ranging review of Continental European Rail⁷

Since Covid, the slow return of passenger numbers, changing passenger profiles - with leisure travel increasing over commuting, a changing brand portfolio and an increase in F&B space and competition across the rail network, have all combined such that we have not delivered adequate returns on our rail investments in Continental Europe. Given this under-performance and in addition to the revised operating plan for Continental Europe, the Board has initiated a wide-ranging review of our Continental European Rail business. This review, to be supported by Alvarez & Marsal, will consider and assess all potential options. The Board expects to be able to update on this review on or before our interims in May 2026.

2)      Consideration of options to realise value for SSP shareholders in line with the delivery of the TFS free float requirement

On 14 July 2025, we successfully listed our Indian subsidiary, Travel Food Services (TFS) on the Indian stock exchanges. As at end November 2025, TFS is trading at an equity value of c.£1.5bn. At the point of the TFS IPO, our partners and co-promoters, the K Hospitality, sold down 13.8% of their shareholding to create an initial free float. Indian listing rules require a minimum free float of 25% of TFS shares within three years of listing.  The SSP shareholding is currently 50.01%.  

We continue to believe that India’s market potential, combined with TFS’ attractive economic model and market leadership, and a strong and balanced ongoing partnership between SSP and K Hospitality, offers a compelling opportunity for growth and returns for the Group. As we work with our partner K Hospitality, to develop forward-looking plans for TFS, the Board will explore options to realise value for SSP shareholders in line with the delivery of the TFS free float requirement.

Business and Strategic Review

Progress against our strategic priorities in FY25 and plans for FY26 include:

1)      Sustainable growth

Against an unsettled macroeconomic backdrop and a softer demand environment in some of our key travel markets in the second half of the financial year, Group LFL sales growth of 4% in FY25 was in line with our guidance of c.4-5%. We focused on driving LFL sales through both increasing passenger conversion rates and average transaction values. Across all markets, we have innovated our customer and client offer including with experience-led concepts such as Shelby & Co. at Birmingham Airport, Tigerstaden at Oslo Airport and Sky Gamerz at Seattle Airport in America. We also continued to roll out our digital ordering and payment systems, with 31% of our transactions now taking place on a digital ordering system.

In North America, where we experienced lower passenger numbers across our network of airports in the second half of FY25, we implemented a set of initiatives to drive LFL sales, such as incentivising units for the strongest sales delivery, enhancing technology and ordering systems, more consistent merchandising, revised menus and a particular focus on Sunday trading effectiveness. Through organic new wins, we continued to strengthen our position in the 56 airports in which we traded at the end of FY25 with incremental restaurants including at JFK Airport Terminals 5 & 6 and Denver Airport.  

In APAC & EEME, we focused on building returns from our recent ARE acquisition in Australia and joint venture investment with Taurus Gemilang (TG) in Indonesia, while building scale and profitability in our more recent new country entries such as Malaysia. In India, our second largest market in the region in sales terms, we have secured two new contracts: 11 restaurants and a lounge at Cochin International Airport’s domestic terminal, and 14 restaurants at Delhi Indira Gandhi International Airport’s Terminal. Additionally, we expect to commence new operations at the upcoming Noida and Navi Mumbai airports, which are expected to open shortly. We also grew our platform in more mature and highly profitable markets, such as Egypt, where we extended contracts in three airports, to operate a total of 20 units.

In the UK, successful renewal activity included the ongoing rejuvenation of our regional UK Air estate, in particular our units at Newcastle, Liverpool, London City and Birmingham Airports. We also won a new contract at Bournemouth Airport to become their main food and beverage partner. Other actions to refresh and innovate our offer included the refurbishment of our M&S retail units, including new layouts, merchandising, digital tills, lighting, signage and flooring. Despite the impact of the M&S systems issues, following its cyber incident in the spring, we saw an average 10% sales uplift across these refurbished M&S stores in the year. 

Across the world, our contract retention level remained strong at more than 80%, reflecting the ongoing confidence that our clients have in our operational delivery. Renewed contracts in the year include Leeds Airport and Belfast International Airport in the UK, Lanzarote Airport in Spain, Zurich Airport in Switzerland, and Frankfurt Airport in Germany.

2)      Building profitability of the Continental European business

We set out a plan in December 2024 to drive the operating profit margin in Continental Europe from 1.5% in FY24 to 3% in FY25 and to c.5% in the medium-term. While our Nordic and Spain businesses have performed well and we delivered tangible benefits from each element of our plan, overall progress for the region to 2.1% operating margin in FY25 (at constant exchange rates) was slower than we had anticipated. This was due to a weak performance in France and Germany, driven in part by the scale of the interventions we deemed necessary to deliver a sustainable improvement, as well as the challenging overall market and Rail and MSA channel environments in these countries.

With a reset and embedded team, we are now making sustained progress against a revised plan. As a result of our actions taken to date, in combination with new initiatives underway, our plan to deliver an operating profit margin in FY26 in the region of at least 3.0% is well underpinned. Our confidence is driven by actions including:

	FY25	FY26
1)  Driving returns from our investment programme	·       Significant step up of actions to restructure contracts across the region ·       Accelerating returns in recently opened units in Nordics and Spain	·       Finalising a number of major rent renegotiations – especially in France and Germany – by the end of H1, which will deliver in excess of £3m benefit in FY26
2) Leadership team and structure	·       New regional CEO in place from October 2024 ·       New leader and organisational model in Nordics ·       Transition for team in France from April 2025	·       New leader and wider team in France from October 2025 ·       Continuing adjustment towards a leaner operating model
3) Reducing and optimising the cost base	·       Necessary step up in control of operating costs, in particular labour and cost of goods ·       More than 50 roles removed in central functions across region which will deliver a full year saving of £5m in FY26	·       Accelerating progress on operational cost reduction ·       More opportunities being targeted in labour planning, waste and overheads
4) Exit of German MSA business	·       72 units exited in year (including 34 units in H2 FY25) ·       Underlying losses of £(6)m in FY25	·       Exiting a further 35 units in FY26 ·       Targeting close to breakeven profitability in FY26; full exit by end of 2026 calendar year
5) Drive like-for-like sales	·       Delivered ‘on time’ openings in Spain and Nordic countries	·       Driving transaction growth ·       Reviewing convenience retail offer

         

We are confident in delivery of a further 2 percentage points of operating margin improvement to achieve our 5% target in the medium-term. This progress will be underpinned by the optimisation of new contracts and renegotiation of existing contracts, unit-level efficiencies in labour, cost of goods and operating processes, leaner structures and the acceleration of profitable like-for-like sales growth.

In tandem with this plan to improve profitability, we also plan to reduce capital expenditure in the region from c.£85m in FY24 and c.£60m in FY25 to c.£45m in FY26, driven by a combination of a lower level of upcoming renewals and a more selective approach to new capital allocation.

3)      Focus on cost efficiency

To support year-on-year margin improvement and counterbalance, where possible, the impact of cost inflationary pressures, we have a rolling programme of operating cost reductions. The programme consists of numerous streams of activity across all areas of our cost base including gross margin optimisation, labour productivity, management of concession fees, and overheads. Initiatives in the year include the roll out of the Workforce Management system across the UK, and recipe standardisation within North America.

Furthermore, in H2, we delivered a significant corporate and regional overhead restructuring plan to simplify and scale back our support costs across the world. This programme will deliver a £30m annualised benefit, of which £5m was delivered in FY25, with the balance being delivered in FY26. The programme has reduced duplication and complexity across the business, whilst also ensuring no drop in customer or client service by our front-line teams.

Other efficiency initiatives have included a systematic review of sub-performing units and contracts, putting in place action plans for each one to deliver improved level of returns in a short timescale. This review led to the decision to exit our subscale businesses in Italy and Bermuda. In addition, we have renegotiated many contracts across the world to deliver improved returns. Notable examples include Copenhagen, The Netherlands, Keflavik in Iceland, and San Francisco.

4)      Accelerate returns from capital investments and focus on cash

We delivered a ROCE⁶ of 18.7%, up from 17.7% in FY24, and 17.0% in FY23 as we focused on building returns in our existing portfolio. The five acquisitions we made in 2023 and 2024, which between them generate annualised revenues of just over £200m, have been a key driver of improving returns. Relative to their specific acquisition cases, returns on these acquisitions are ahead or in line with planned levels and in aggregate, we now expect to deliver a combined IRR from this activity of approximately 20%.

In addition, ROCE progression was supported by increased underlying profits, a scaling down of new capital expenditure from £280m in FY24 to £212m in FY25, and limited in-year M&A, in line with our prioritisation of profitable organic growth and shareholder returns.  Further progress towards our medium-term target for ROCE of 20% will be driven by strengthened operational performance, the maturing and optimisation of returns on recent investments and more selective deployment of incremental capital.

Given our good cash generation in FY25, as at 30 September 2025 our net debt / EBITDA was 1.6x, at the lower end of the 1.5x-2.0x target range.  As a result, in October 2025, we initiated a £100m share buyback, consistent with our capital allocation strategy, reflecting a healthy balance sheet position and highlighting the Board's confidence in our prospects into FY26 and beyond.

We expect that our total level of capital expenditures in FY26 will be no higher than £200m, with growth capex consistent with an expected level of net gains (excluding Motorway Service Area (“MSA”) site exits) in the year of c.2%. The further reduction in capital spend, together with a new programme of activity to drive cash conversion, is expected to deliver an improvement in free cash flow generation (pre-dividend) from £80m in FY25 to >£100m in FY26.

Focused cash generation plan:
1.       Operating cashflow	·       Strong execution at unit, airport and regional level ·       Disciplined operating standards
2.       Working capital	·       Payment flows: timing of rent payments, use of bank guarantees ·       Focus on faster cash collection
3.       Capex	·       Being more selective ·       More overt ‘competition’ for capital internally ·       Reviewing unit build specifications - “smart” capex
4.       Minority interest, interest and tax	·       Optimising MI and JV models ·       Tailoring funding structures
5.       Enablers for cash focus	·       Emphasis on cash metrics in performance management ·       Market CFOs accountable for cash delivery

 

Medium-term framework

Global demand for travel is well set for long-term structural growth. Against that back-drop, in the medium-term, we expect to generate sustainable growth and enhanced shareholder returns through our business model as follows:

Revenue	Capabilities and competitive advantages delivering sustainable LFL growth
Profit conversion	Driving operating and structural efficiencies to offset cost inflation and grow profitability faster than sales
Cash flow generation	Aiming for sustained improvements in cash conversion to fund capital allocation priorities, including ongoing cash returns to shareholders
New business development	Selectively developing new business in structurally growing markets under a disciplined framework with clear hurdle rates

 

 

Supplementary Financial Information (underlying pre-IFRS 16)

 

Regional Sales

 

£m	FY25 Revenue	LFL	Net Gains	Other	Acquisitions	Change at constant FX rates	Change at actual FX rates		LFL First 8 weeks FY26
N.America	852	-	6%	-	2%	8%	5%		2%
C.Europe	1,205	2%	1%	(2)%	-	1%	-		2%
UK & I	962	7%	1%	-	-	8%	8%		7%
APAC & EEME	620	10%	8%	(7)%	13%	24%	19%		9%
Group	3,639	4%	4%	(2)%	2%	8%	6%		4%

 

Underlying Pre-IFRS 16 Regional Operating profit

 

£m	FY25 Operating profit	Change at constant FX rates	Change at actual FX rates	FY25 Operating profit margin	Change at constant FX rates
N.America	93	20%	15%	10.9%	1.1%
C.Europe	26	35%	44%	2.2%	0.5%
UK & I	81	12%	12%	8.4%	0.3%
APAC & EEME	76	8%	0%	12.3%	(1.9)%
Non-attributable	(53)	(28)%	(28)%	n/a	n/a
Group	223	13%	8%	6.1%	0.3%

 

Underlying Pre-IFRS 16 Net Profit/(Loss)

£m	FY25	FY24	Change
Revenue	3,639	3,433	6%
Gross Profit	2,656	2,496	6.4%
% sales	73.0%	72.7%
Labour Costs	(1,105)	(1,030)	7%
% sales	-30.4%	-30.0%
Concession Fees	(779)	(739)	5%
% sales	-21.4%	-21.5%
Overheads	(408)	(384)	6%
% sales	-11.2%	-11.2%
EBITDA	364	343	6%
% sales	10.0%	10.0%
Depreciation	(141)	(137)	3%
% sales	-3.9%	-4.0%
Operating Profit	223	206	8%
Operating margin %	6.1%	6.0%
Net Finance cost	(38)	(33)	15%
Associates	8	6	33%
Profit Before Tax	193	178	8%
Tax	(37)	(35)	9%
Minority interests	(60)	(63)	(5)%
Net Profit	95	80	19%

2026 Technical Guidance on a pre-IFRS 16 basis

Net finance costs	c.£40m
Associates	c.£10m
Effective tax rate	c.22-23%
Minority interests	c.£60m
Working capital	Inflow from ongoing working capital optimisation programme
Capex	<£200m
Leverage	Target range of 1.5x to 2.0x (Net Debt: EBITDA), with the usual seasonal profile
TFS	Ongoing repositioning and deconsolidation impacts in operating profit; offset at EPS level by increased associates and a reduction in post-tax minority interest

Note: All figures stated on a constant currency basis

If the current spot rates (as of 27 November 2025) were to continue through 2026, we would expect a currency impact on revenue and operating profit of +0.8% and -0.4%, compared to the average rates used for 2025.  

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of English law by virtue of the European Union Withdrawal Act 2018 (MAR). The person responsible for arranging the release of this announcement on behalf of the Company is Fiona Scattergood, Group General Counsel and Company Secretary.

 

CONTACTS 

Investor and analyst enquiries

Sarah Roff, Group Head of Investor Relations, SSP Group plc

+44 (0) 7980 636214

E-mail: sarah.roff@ssp-intl.com

 

Media enquiries

Rob Greening / Russ Lynch, Sodali & Co

+44 (0) 207 250 1446

E-mail: ssp@sodali.com