21 November 2024
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Global Industry

SSP Group: reports Fourth Quarter Trading Update 2024

London / UK. (ssp) British SSP Group PLC, a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 37 countries, issued in October a Trading Update covering the fourth quarter (Q4) of its 2024 financial year ending 30 September 2024. Good underlying trading momentum has continued through to the end of the financial year, leaving SSP well-positioned to deliver full year results within planning assumptions.

Performance headlines

  • Strong Q4 revenue growth of circa 15 percent YoY (on a constant currency basis), including LFL sales of 6 percent
  • H2 revenue growth of circa 15 percent YoY, with expected H2 operating profit growth of more than 30 percent and operating margin enhancement of circa 100 bps, and strong performances in North America, UK and APAC + EEME (all on a constant currency basis)
  • FY revenue of circa GBP 3.5bn, up circa 17 percent YoY, with FY operating profit expected to be circa GBP 210-220m, up circa 30 percent YoY, with operating margin of circa 6 percent, up circa 50bps (all on a constant currency basis)
  • FY EPS expected to be circa 10 Pence (at actual FX rates), with operating profit within our planning assumption ranges, and including a benefit in interest and tax charges in the year
  • Strong focus on cash, with year-end net debt expected to be in the range of circa GBP 610-630m; Year-end leverage anticipated to be approximately 1.8x (at actual FX rates), down from 2.1x at the half year, and returning to within our medium-term target leverage range of 1.5-2.0x
  • Programme of actions in place to build profitability and margins in Continental Europe
  • Focus on generating strong returns from the extensive capital investment programme of the last two years and on the integration of recent acquisitions

Chief Executive Patrick Coveney: «There has been good trading momentum across our business throughout Q4. Our North America, Asia Pac + EEME regions have continued to perform ahead of, or in line with, our plan and we have seen a material improvement in the performance of our UK business. We have had challenges in some parts of our Continental European business, which we are addressing through a series of actions that will build margins. Overall, this year, we expect the Group to deliver a significant increase in year-on-year profitability and margins. Our focus is now on optimising the performance of our business, building returns on the high level of recent investment, and the delivery of sustainable and compounding growth and returns in the years to come.»

For additional information please read the Company’s PDF file below (112 KB):

20241120-SSP-Q42024.


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