REG - SSP Group PLC - 2025 FULL YEAR RESULTS ANNOUNCEMENT
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RNS Number : 1800K SSP Group PLC 04 December 2025
4 December 2025
LEI:
213800QGNIWTXFMENJ24
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
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.
Underlying Pre-IFRS 16(1,2) Statutory IFRS
(unaudited) 2025 vs 2024 2025 vs 2024
At actual FX rates At constant FX rates At actual FX rates At actual FX rates At actual FX rates
Sales growth 7.8% 6.0% Revenue £3,639m 6.0%
Operating profit £223m 12.7% 8.3% Operating profit £86m (58)%
Operating profit margin 6.1% 30bps 10bps
Earnings per share 11.9p 25% 19% Loss per share (9.3)p (373)%
Free cash flow (pre-dividend) £80m n/a £283m
Pre-tax ROCE 18.7% n/a +100bps Loss before tax £(10)m (109)%
Net debt £(574)m n/a £19m Net debt £(1,817)m £(135)m
Net debt/EBITDA 1.6x n/a (0.1)x
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 flow(3): £80m (pre-dividend) after £99m working capital
inflow and capex of £212m (vs. £280m LY)
· Net Debt/EBITDA(8): 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 ROCE(6): 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 business(7) 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 business(7), 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 Rail(7)
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 · Finalising a number of major rent renegotiations - especially in
region France and Germany - by the end of H1, which will deliver in excess of £3m
benefit in FY26
· Accelerating returns in recently opened units in Nordics and Spain
2) Leadership team and structure · New regional CEO in place from October 2024 · New leader and wider team in France from October 2025
· New leader and organisational model in Nordics · Continuing adjustment towards a leaner operating model
· Transition for team in France from April 2025
3) Reducing and optimising the cost base · Necessary step up in control of operating costs, in particular labour · Accelerating progress on operational cost reduction
and cost of goods
· More opportunities being targeted in labour planning, waste and
· More than 50 roles removed in central functions across region which overheads
will deliver a full year saving of £5m in FY26
4) Exit of German MSA business · 72 units exited in year (including 34 units in H2 FY25) · Exiting a further 35 units in FY26
· Underlying losses of £(6)m in FY25 · 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 ROCE(6) 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
(1) Stated on an underlying basis, which excludes non-underlying items as
further explained in the section on Alternative Performance Measures (APMs) on
pages 19-23.
(2) We have decided to maintain the reporting of our profit and other key
financial measures like net debt and leverage on a pre-IFRS 16 basis. Pre-IFRS
16 profit numbers exclude the impact of IFRS 16 by removing the depreciation
on right-of-use (ROU) assets and interest arising on unwinding of discount on
lease liabilities, offset by the impact of adding back in charges for fixed
rent. This is further explained in the section on Alternative Performance
Measures (APMs) on pages 19-23.
(3 ) A reconciliation of Underlying operating profit/(loss) to free cashflow
is shown on page 18.
(4 ) Net debt reported under IFRS includes lease liabilities whereas on a
pre-IFRS 16 basis lease liabilities are excluded. Refer to 'Net debt' section
of the 'Financial review' for a reconciliation of net debt.
(5) Constant currency for FY25 is based on average FY24 exchange rates
weighted over the financial year by FY24 results. Constant currency for FY26
is based on FY25 exchange rates.
(6) Return on capital employed is defined as underlying pre-IFRS 16 operating
profit, adjusted for Associates and Non-controlling interests. Capital
Employed is defined as Group Net Assets adjusted to exclude Net Debt, tax
assets and liabilities, lease and other long term liabilities, Non-controlling
interests share of equity and adding back capital written off through
impairments. This is further explained in the section on Alterative
Performance Measures (APMs) on pages 19-23.
(7) Markets in scope of the review are France, Germany, Belgium, the
Netherlands, Switzerland and Austria.
(8) Underlying EBITDA (on a pre-IFRS 16 basis) is the measure of underlying
operating profit excluding depreciation and amortisation.
Supplementary Financial Information (underlying pre-IFRS 16)
Regional Sales
£m FY25 LFL Net Gains Other Acquisitions Change at constant FX rates Change at actual LFL
Revenue FX rates 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 Change at constant FX rates Change at actual FY25 Change at constant FX rates
Operating profit FX rates Operating profit margin
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.
A presentation and live webcast will be held at 9am (UKT) today, and details
of how to join can be accessed at:
https://webcasts.foodtravelexperts.com/results/2025preliminaryresults
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 (mailto:sarah.roff@ssp-intl.com)
Media enquiries
Rob Greening / Russ Lynch, Sodali & Co
+44 (0) 207 250 1446
E-mail: ssp@sodali.com (mailto:ssp@sodali.com)
NOTES TO EDITORS
About SSP
SSP Group plc (LSE:SSPG) is a global leading operator of food and beverage
outlets in travel locations employing around 49,000 colleagues in around 3,000
units across 38 countries. We specialise in designing, creating and operating
a diverse range of food and drink outlets in airports, train stations and
other travel hubs across six formats: sit-down and quick service restaurants,
bars, cafés, lounges, and food-led convenience stores. Our extensive
portfolio of brands features a mix of international, national, and local
brands, tailored to meet the diverse needs of our clients and customers.
Our purpose is to be the best part of the journey, and our focus is on making
every journey taste better - bringing great food and welcoming hospitality to
travellers across the globe. Sustainability is crucial for our long-term
success, and we aim to deliver positive impact for our business while uniting
stakeholders to promote a sustainable food travel sector.
www.foodtravelexperts.com (http://www.foodtravelexperts.com)
Financial review
Group performance
2025 2024 Change
£m £m
Actual Constant currency LF
currency
L
(%)
(%) (%
)
Revenue 3,638.5 6.0 7.8 3.7
3,433.2
Operating profit 86.1 205.9 (58.2)
Underlying operating profit 269.1 9.1
246.6
Pre-IFRS 16 underlying operating profit 222.8 205.6 8.4 12.5
Against a backdrop of ongoing macroeconomic and geopolitical uncertainty,
demand for travel has remained resilient and the Group's revenues have grown
throughout the year. Total Group Revenue of £3,638.5m increased by 6.0% at
actual exchange rates compared to 2024 and by 7.8% on a constant currency
basis. This constant currency revenue growth included like-for-like growth of
3.7% and net new space growth of 4.1%, with the latter comprising 3.5% from
organic net contract gains, 2.5% from acquisitions, and a -1.9% "other" impact
from the previously announced staged exit of our German MSA business and the
reported loss of sales from our lounge business in Mumbai, India, as a result
of now being accounted for as an associate and no longer consolidated in the
reported results.
During the first half year, revenues were 9.5% ahead of 2024 levels at actual
exchange rates and 12.1% ahead on a constant currency basis. This included
strong like-for-like sales growth, of 5.0% (or 5.5% when adjusting for the
additional leap year day in 2024), reflecting the strengthening of our
customer proposition, as well as fewer days of industrial action when compared
to 2024. Net new space growth added 7.1% to sales, comprising 4.7% from net
contract gains across the Group, 4.4% from acquisitions and -2% impact from
"other". Revenue in the first half of the Group's financial year is typically
lower than in the second half, as a significant part of our business serves
the leisure sector of the travel industry, which is particularly active during
the summer season in the Northern hemisphere.
During the second half year, revenues continued to grow but at a slower rate,
increasing by 3.2% at actual exchange rates compared to 2024 (4.5% on a
constant currency basis). Like-for-like sales growth slowed down to 2.6% as a
result of the M&S cyber-attack, geopolitical and air safety incidents in
the Middle East and India, the impact of trade policy and political tensions
on travel to and within North America, a challenging macroeconomic operating
environment in France and Germany as well as tougher prior year comparatives
in 2024. Whilst we expected and planned for a slowdown in LFL growth in the
second half, these specific events had a more pronounced impact on sales than
expected. Net new space added a further 2.0%, including a 0.9% contribution
from acquisitions and -1.7% impact from our MSA exit and the change in
reporting of our Mumbai lounge business in India.
Since our year end, we have seen more positive sales momentum across the
business, with total Group revenue during the first eight weeks increasing by
6% compared to 2025 on a constant currency basis, with 4% LFL growth.
Trading results from outside the UK are converted into sterling at the average
exchange rates for the year. The overall impact of the movement of foreign
currencies (principally the Euro, US Dollar, Australian Dollar, Canadian
Dollar, Swedish Krona, Norwegian Krone, Indian Rupee, Egyptian Pound and Swiss
Franc) in 2025 compared to the 2024 average was -1.7% on revenue, -3.4% on
EBITDA and -4.3% on operating profit.
Operating profit
The underlying operating profit on a IFRS basis was £269.1m, compared to
£246.6m in the prior year. On a reported basis under IFRS, the operating
profit was £86.1m (2024: £205.9m), reflecting a charge of £183.0m (2024:
£40.7m charge) for non-underlying operating items. See the following section
for more detail on these items.
On a pre-IFRS 16 basis, the Group reported underlying operating profit of
£222.8m (2024: £205.6m). The underlying pre-IFRS 16 operating profit margin
improved to 6.1% (2024: 6.0%). On a constant currency basis, operating
profit of £233.0m was towards the lower end of the range of the Planning
Assumptions we set out last year. This year-on-year improvement in
profitability reflected strong profit growth across our North America and UK
operating segments, as well as strong profit growth on a constant currency
basis in our APAC & EEME region, offset by continued underperformance in
France and Germany within our Continental Europe region. The year has been
challenging for portions of our business, particularly within our Continental
Europe business, which is reflected by the impairments within our statutory
IFRS results.
Non-underlying operating items
Items which are not considered reflective of the normal trading performance of
the business, and are exceptional because of their size, nature or incidence,
are treated as non-underlying operating items and disclosed separately. In
the event that items are reversed in subsequent years, they are recognised in
underlying or non-underlying profit or loss based on their original
classification. Taxes follow the classification of the taxed items.
The non-underlying operating items included in the net charge of £183.0m, of
which £42.2m was cash in the year, mainly consist of:
· Impairment of goodwill: As a result of past acquisitions, and in
particular the creation of SSP by the acquisition of the SSP business by EQT
in 2006, the Group holds a significant amount of goodwill on its consolidated
balance sheet. This is allocated to cash generating units, and performance is
monitored on this basis. Goodwill impairment testing is carried out annually,
or more frequently if indicators of impairments have been identified.
Following the most recent reviews, a goodwill impairment of £32.3m was
identified in relation to our German business.
· Impairment of property, plant and equipment and right-of-use assets:
The Group has carried out impairment reviews where indications of impairment
have been identified. Following these reviews, a charge of £84.5m has been
recognised in impairment charges (£75.0m) and non-recurring depreciation
(£9.5m), including a net impairment of right-of-use assets of £33.8m.
These impairments relate mainly to France, Saudi, Italy and Germany.
· IT transformation costs: The Group is undergoing a major IT
transformation project and has incurred significant costs developing a number
of cloud-based IT systems. The Group has reassessed the accounting treatment
of these costs previously capitalised as software intangible assets and
concluded that these costs should not have been capitalised as the Group does
not directly control the cloud-based asset to which they have been attributed.
However, these systems will be used into the medium term and therefore will
deliver benefits well into the future and hence management have treated the
related development costs as non-underlying. We have therefore recognised a
total charge of £33.4m, comprised of a £24.5m brought forward charge and
£5.1m of current period charges in respect of this activity, and £3.8m of
costs related to strengthening our cyber defences in non-underlying IT
transformation costs.
· Site exit costs: The Group has recognised £13.8m of site exit costs
in the year, with £8.5m relating to Italy, France and Germany, and the rest
to a number of other smaller site exits across the Group.
· India IPO: The Group has recognised £7.1m of expenses in relation to
the listing costs of our Indian TFS business.
· Restructuring costs: The Group has recognised a charge of £12.7m
relating to its restructuring programmes carried out across the Group in the
year. The charge primarily relates to redundancy costs associated with the
corporate and regional overhead restructuring programme described earlier on
page 3.
· Gain on lease derecognition: A £2.5m gain on lease derecognition has
been recognised on the disposal of previously impaired leases, being the
difference between the carrying value of the right-of-use asset and lease
liability.
Regional performance
This section summarises the Group's performance across its four operating
segments. For full details of our key reporting segments, please refer to
note 2 on page 31.
North America
2025 2024 Change
£m £m
Actual currency Constant currency LF
L
(%) (%)
(%
)
Revenue 852.3 813.9 4.7 8.3 (0.4)
Operating profit 95.4 79.9 19.4
Underlying operating profit 99.4 87.6 13.5
Pre-IFRS 16 underlying operating profit 92.5 80.6 14.8 20.2
Full year revenue of £852.3m increased by 8.3% on a constant currency basis,
including a like-for-like decline of -0.4% and contributions from new space of
8.7%, including acquisitions of 1.9%. At actual exchange rates full year
revenue increased by 4.7%.
During the first half, sales growth in North America remained strong,
particularly in the first quarter, running 13.0% above the prior year on a
constant currency basis, including like-for-like growth of 1.5%, net contract
gains of 7.6%, and a 3.9% contribution from acquisitions, reflecting the
Denver Airport portion of Midfield Concessions, ECG and Atlanta acquisitions
in early 2024.
During the second half, sales growth slowed to 4.5% on a constant currency
basis, with like-for-like decline of -1.9% due to a challenging market
operating environment in North America. New space in the second half grew by
6.4% through organic gains only as the acquisitions are now reported in LFL,
with contributions from new openings in Bradley International Airport,
Victoria International and George Bush International. In the first eight weeks
of the new financial year FY26, trading has been more encouraging, with sales
currently running 6% ahead of the prior year on a constant currency basis,
including LFL of 2%.
The underlying operating profit for the period was £99.4m, compared to
£87.6m in the prior year, and the reported operating profit was £95.4m
(2024: £79.9m). Non-underlying operating items comprised impairment charges
of £3.0m and restructuring costs of £1.0m.
On a pre-IFRS 16 basis, the underlying operating profit was £92.5m, which
compared to £80.6m last year, an increase of 14.8%, with the operating
margin improving by 1.0% to 10.9%. This year-on-year improvement was achieved
despite the impact of air travel disruption across the year, as reflected in
our LFL performance. The underlying results contain £5.5m of incremental cost
relating to a catch up in collective bargaining agreements year-on-year, as
well as a material negative impact on sales due to the US geopolitical
situation. These impacts were broadly balanced by a benefit of approximately
£13.5m from an unusually high level of rent negotiations and the release of
Covid-19 related rent credits following the ruling from the Federal
Government.
UK (including Republic of Ireland)
2025 2024 Change
£m £m
Actual currency Constant currency LF
L
(%) (%)
(%
)
Revenue 961.7 892.5 7.8 7.8 6.6
Operating profit 86.1 73.5 17.1
Underlying operating profit 90.3 79.4 13.7
Pre-IFRS 16 underlying operating profit 81.2 72.5 12.0 11.8
Full year revenues were £961.7m. This represents an increase of 7.8% on a
constant currency basis, including like-for-like growth of 6.6% and
contributions from net contract gains of 1.2%. At actual exchange rates full
year revenue also increased by 7.8%.
First half revenue in the UK of £424.6m increased by 8.5% on a constant
currency basis, including like-for-like growth of 7.7% and a contribution of
0.8% from net gains. At actual exchange rates first half revenue increased by
8.3%. The strong first half was driven by growth in the air passenger sector,
a strong performance from M&S simply food and a lower incidence of
industrial action in the rail sector compared with the previous year.
Second half revenue increased by 7.2%, including 5.8% from like-for-like
growth and 1.4% from organic net gains. The second half result was disrupted
by the M&S cyber-attack during Q3 yet still achieved 6% LFL growth. Since
the year end, trading so far in FY26 has been encouraging with sales growing
by 8% compared to FY24 on a constant currency basis, including 7% LFL growth.
The underlying operating profit for the UK was £90.3m compared to £79.4m in
the prior year, with a reported operating profit of £86.1m (2024: £73.5m).
Non-underlying operating costs of £4.2m included impairments of property,
plant and equipment (£1.5m), right-of-use asset impairment of £0.7m and
other costs of £2.0m.
On a pre-IFRS 16 basis, the underlying operating profit was £81.2m, which
compared to £72.5m last year, an increase of 12.0%, with the underlying
operating margin improving by 0.3% year-on-year to 8.4%, despite the impact of
the cyber attack on our M&S estate. The impact of the M&S
cyber-attack, as well as the in-year impact of the unexpected step up in UK
national insurance, cost the business approximately £5m in the financial
year. However, these impacts were broadly balanced by £4.9m in-year credits,
comprising government support payments from the Covid-19 period and client
compensation payments (mainly in respect of rent).
Continental Europe
2025 2024 Change
£m £m
Actual currency Constant currency LFL
(%) (%) (%)
Revenue 1,204.5 1,207.4 (0.2) 0.5 1.6
Operating (loss)/profit (47.9) 10.5 (556)
Underlying operating profit 42.4 39.1 8.4
Pre-IFRS 16 underlying operating profit 26.4 18.3 44.3 34.9
Full year revenue of £1,204.5m increased by 0.5% on a constant currency
basis, including like-for-like growth of 1.6% and a reduction from net
contract losses of -1.1%, including -2% from our ongoing exit of German MSA.
At actual exchange rates full year revenue decreased by -0.2%.
Revenues increased in the first half, up by 3.3% year-on-year on a constant
currency basis, with like-for-like sales growth of 2.5% and a contribution of
2.4% from net gains, offset by a -1.6% impact from the closure of part of our
MSA business in Germany. At actual exchange rates first half revenue decreased
by -0.2%.
Second-half sales declined by -1.7%, reflecting LFL growth of 0.9% and net
contract gains of 0.5%, offset by a -3.1% impact from MSA closures. Trading
over the summer was affected by further industrial action, which cost the
region £1.1m in operating profit, as well as lower demand for transatlantic
travel and weak consumer sentiment in some of our operated brands due to the
Israel-Palestine conflict. Whilst European Rail performance was below
expectations overall due to a more competitive market, over-catered facilities
and a challenging consumer environment, German Rail faced a particularly
difficult comparator following double-digit growth in the prior year driven by
the Euro 2024 football championships. In the first 8 weeks, revenue has grown
by 1%, including 2% LFL growth.
The underlying operating profit for the period was £42.4m compared to £39.1m
in the prior year, with a reported operating loss of £47.9m (2024: £10.5m
profit). Non-underlying operating items of £90.3m included a £32.2m
impairment of goodwill in Germany, PP&E impairments of £25.4m, and
right-of-use impairments of £21.8m following the renewal of a number of
contracts in the air channel at higher rents as well as a negative shift in
the medium term outlook for parts of the business in France and Germany due to
the current economic and political environments. The remaining costs mainly
related to site exits, redundancy and reorganisation costs, as well as a
£2.5m gain on lease derecognition.
On a pre-IFRS 16 basis, the underlying operating profit was £26.4m, which
compared to £18.3m last year, with the underlying operating margin improving
by 0.7% (1.5% in 2024) to 2.2% on a constant currency basis (+0.5% at actual
rates).
Whilst the improvement in underlying profit year-on-year is encouraging, it
falls short of our previously set out expectations of 3% operating margin, as
our issues in the region, particularly in European rail, were more complex
than previously anticipated. We remain committed to returning the operating
margin to at least 3% in FY26 and 5% in the medium term. We have made progress
this year and expect the new regional leadership team to drive further value
in FY26. Additionally, we expect our exit of the German MSA Tank & Rast
contract to be substantially complete by the end of FY26 and our total exit
from German MSA by end of calendar year 2026. Trading profits were negatively
impacted by the deteriorating performance in this MSA channel during this
summer's exit period costing the business an additional £1.6m, and by
additional unplanned strikes in Belgium and France. These impacts were largely
offset by the benefit of one-off credits totalling £6.5m, comprising
government support payments from the Covid-19 period as well as client
compensation payments and other one-off credits.
APAC & EEME
2025 2024 Change
£m £m
Actual currency Constant currency LF
L
(%) (%)
(%
)
Revenue 620.0 519.4 19.4 24.3 9.7
Operating profit 50.5 79.6 (36.6)
Underlying operating profit 90.5 82.7 9.4
Pre-IFRS 16 underlying operating profit 76.2 76.0 0.1 7.7
Full year revenue of £620.0m increased by 24.3% on a constant currency basis,
including like-for-like growth of 9.7%, contributions from net contract gains
of 7.7%, 13.5% from the acquisition of the ARE business in Australia and -6.6%
from the transfer of our lounge business in Mumbai into a joint venture,
Semolina Kitchens Private Limited (SKPL), now reported as an associate. At
actual exchange rates full year revenue increased by 19.4%.
In the first half, revenue in the APAC and EEME region of £294.8m increased
by 38.4% on a constant currency basis, including like-for-like growth of 12.5%
and contributions of 12.1% from organic net gains and 24.1% from acquisitions,
offset by a -10.3% impact from the loss of sales from the transfer of our
lounge business in Mumbai in India. At actual exchange rates first half
revenue increased by 32.4%.
Second-half revenue grew by 14.0% on a constant currency basis, comprising LFL
growth of 7.4%, net gains of 5.1%, a 5.5% contribution from the ARE
acquisition, and a -4.0% impact from the Mumbai lounge transfer. Strong LFL
growth was driven by Australia, Egypt, and Hong Kong, supported by continued
recovery in passenger volumes. India and the Middle East were impacted by the
tragic Air India accident in June, which led to large scale additional
aircraft safety checks that reduced capacity through Q4, and by the
Israel-Iran conflict in early summer. Despite these events, the region
delivered LFL growth of nearly 8%. Since the year end, sales have continued to
grow strongly with sales 15% up compared to the same period in FY25 on a
constant currency basis, including 9% LFL growth.
The underlying operating profit for the period was £90.5m, compared to
£82.7m in the prior year, and the reported operating profit was £50.5m
(2024: £79.6m). Non-underlying operating items of £40.0m comprised
impairments of £20.8m, right-of-use impairment of £11.3m and other
transaction, restructuring, Italy site exit and non-underlying costs of
£7.9m. Due to the slower than expected development of passenger growth and
spend levels in our new Jeddah business impacting the short to medium term
outlook of our business in the airport, we have impaired the carrying value of
our assets there for an amount of £13.3m, despite not all of the units there
being open for 12 months before this impairment.
On a pre-IFRS 16 basis, the underlying operating profit was £76.2m, an
increase of 0.1% year-on-year. This was despite the prior year including 8
months of trading from our lounge business in Mumbai Airport as referenced
above, reflecting strong growth in our like-for-like businesses, notably in
Australia, Malaysia and Egypt.
Share of profit of associates
The Group's underlying share of profits of associates was £8.2m (2024:
£5.4m), stronger year-on-year primarily as a result of the transfer of our
Mumbai lounge business into a new joint venture SKPL, referenced above,
recognised in the associate line, offset by losses in the Group's Extime joint
venture with Aeroport de Paris in France. On a reported basis, the share of
profits of associates was £8.2m (2024: £5.4m).
On an underlying pre-IFRS 16 basis, the Group's share of profit from
associates was £8.4m (2024: £5.6m).
Net finance costs
The underlying net finance expense for the financial year was £105.0m (2024:
£95.0m), which includes interest on lease liabilities of £66.5m (2024:
£62.1m). The reported net finance expense under IFRS was £104.7m (2024:
£92.7m).
On a pre-IFRS 16 basis, underlying net finance costs were higher than the
prior year at £38.5m (2024: £32.9m). This increase was driven principally by
the fact that we incurred a foreign exchange benefit in the prior year. The
out-turn was lower than the guidance of c.£45m provided with our interim
results in May as a result of one-off currency gains and stronger interest
income than expected.
Taxation
On a pre-IFRS 16 basis, the Group's underlying tax charge was £37.3m (2024:
£34.8m), equivalent to an effective tax rate of 19.4% (2024: 19.5%) of the
underlying profit before tax. On an IFRS basis, the Group's underlying tax
charge for the period was £26.2m (2024: £33.4m), representing an effective
tax rate of 15.2% (2024: 21.3%) of underlying profit before tax.
On a reported basis, the tax charge for the period was £13.6m (2024: £33.1m)
representing a negative effective tax rate of 138.0% (2024: a positive
effective tax rate of 27.9%). The negative effective tax rate at the reported
level is driven by the £32.2m impairment in German goodwill that is
permanently non-deductible for tax, together with non-underlying impairment
and restructuring costs in a number of Continental European jurisdictions
where no deferred tax asset is recognised on losses or timing differences,
most notably in France and Germany.
The Group's tax rate is sensitive to the geographic mix of profits and losses
and reflects a combination of higher rates in certain jurisdictions, as well
as the impact of losses in some countries for which no deferred tax asset is
recognised.
The underlying tax charge in the year has benefitted from a deferred tax
credit of £15.2m (2024: £18.2m) arising from the recognition of a further
amount of the significant deferred tax assets in relation to the Group's US
operations, which have not previously been recognised. A total amount of
£19.4m (2024: £18.2m) has been recognised in the underlying tax charge. The
increase in the amount recognised results from improvements in medium-term
profit forecasts, driven by strengthening operating profits in the current
year, as well as lower interest costs following a capital injection.
In light of the sustained profitability in North America, with the recognition
of the additional amount of £19.4m, the Group has now recognised total US
deferred tax assets of £37.2m at the year end, representing all US tax losses
and tax credits other than those it expects are likely to expire. The US
deferred tax credit has been offset by deferred tax assets de-recognised in
other countries of £2.4m resulting in a net deferred tax credit of £17.0m in
the Group's reported tax charge.
Non-controlling interests
The profit attributable to non-controlling interests was £50.4m (2024:
£58.1m). On a pre-IFRS 16 basis the profit attributable to non-controlling
interests was £60.4m (2024: £63.5m), with the year-on-year decrease
reflecting good year-on-year profit growth in our partially-owned subsidiaries
(operated with joint venture partners) in North America and APAC & EEME,
offset by the transfer of our Mumbai lounge business into an associate
company, SKPL, and therefore deconsolidated. An analysis of the year-on-year
increase in the pre-IFRS 16 non-controlling interest charge is set out in the
table below:
On a pre-IFRS 16 basis 2025 2024 Year-on-year change (%)
£m
£m
North America 35.0 31.3 12%
APAC & EEME
- India 21.0 27.6 (24)%
- Other 4.4 4.6 (4)%
Group 60.4 63.5 (5)%
In North America, the year-on-year increase of 12% is below the increase in
underlying pre-IFRS16 operating profit for the region of 15%, reflecting a
stronger profit growth in Canada where we own 100% of the business, as well as
the change in mix of profitability from our US airports in the year.
In India, the lower year-on-year charge reflects the transfer of our Mumbai
lounge business to SKPL, being broadly in line with the operating profit
decrease of 20%, and in line with the guidance given last year of a £7m
decrease in our minority interest line.
Earnings per share
The Group's underlying earnings per share was 11.0 pence per share (2024: 8.1
pence per share), and its reported loss per share was 9.3p pence per share
(2024: 3.4 earnings pence per share).
On a pre-IFRS 16 basis the underlying earnings per share was 11.9 pence per
share (2024: 10.0 pence per share), representing year-on year growth of 19.0%
at actual exchange rates. While a driver of this year-on-year growth was the
improvement in the underlying operating profit (increasing by 8.5% at actual
rates), it also benefited from an increase in the share of associates, a
reduction in our minority interest charge for the year and the recognition of
US deferred tax assets.
Dividends
In line with the Group's stated priorities for the uses of cash and after
careful review of its medium-term investment requirements, the Board is
proposing a final dividend of 2.8 pence per share (2024: 2.3 pence per share),
which is subject to shareholder approval at the Annual General Meeting. This
full year dividend combined with the interim dividend of 1.4 pence per share
would bring the total FY25 dividend to 4.2 pence per share, a payout ratio of
35% of the underlying pre-IFRS 16 earnings per share, which is in the middle
of our target payout range of 30-40%.
The final dividend will be paid, subject to shareholder approval, on 27
February 2026 to shareholders on the register on 30 January 2026. The
ex-dividend date will be 29 January 2026.
Free Cash flow
The table below presents a summary of the Group's free cash flow for 2025
2025 2024
£m £m
Underlying operating profit¹ 222.8 205.6
Depreciation and amortisation 141.2 137.3
Exceptional operating costs (42.2) (16.6)
Working capital 98.6 (20.2)
Net tax payment (27.4) (26.0)
Capital expenditure² (212.4) (279.6)
Acquisitions, net of cash received (23.0) (138.9)
Net dividends to non-controlling interests and from associates (41.7) (34.5)
Net finance costs (37.9) (35.8)
Other 2.3 5.7
Free cash Flow (before dividend) 80.3 (203.0)
Dividends (29.6) (29.5)
Net Free cash Flow (after dividend) 50.7 (232.5)
1 Presented on an underlying pre-IFRS 16 basis
(refer to pages 21-22 for details).
2 Capital expenditure is net of cash capital
contributions received from non-controlling interests in North America of
£15.0m (2024: £17.5m) and is stated on an accruals basis.
The Group's net cash inflow during the year was £50.7m, an increase of
£283.2m compared to a £232.9m net cash outflow last year. This year-on-year
change reflected the lower levels of capital expenditure in 2025, as well as
the improvement in working capital driven by the use of supply chain finance
solutions. The net inflow is also after one off acquisition costs for a 1.01%
additional share in TFS, after its listing in the summer, and acquisition
costs of our joint venture investment in Indonesia.
Capital expenditure was £212.4m, a significant decrease compared to the
£279.6m in the prior year, reflecting more selective expansionary capex
spend, as well as a more usual travel industry level of renewals and
maintenance projects.
Working capital of a £98.6m inflow was improved by £114.5m compared to an
outflow of £20.2m in the prior year. This was mainly driven by the
introduction of a supply chain financing programme in the year.
Net tax payments of £27.4m were higher year-on-year (compared to £26.0m in
2024), reflecting the Group's increase in profitability over the last twelve
months. Net cash flows paid to non-controlling interests (net of receipts
from associates) increased to £41.7m (from £34.5m in 2024), reflecting a
£5.0m increase in US distributions to NCI year-on-year.
Net finance costs paid of £37.9m were higher than the prior year equivalent
of £35.8m, mainly due to last year being impacted by a foreign exchange
benefit. There is also a small net economic benefit in finance costs from
supply chain finance costs moving into operating expenses.
Net debt
Overall net debt decreased by £18.3m to £574.2m on a pre-IFRS 16 basis,
largely driven by the free cash inflow after dividend in the year of £50.7m
as detailed above. On a reported basis under IFRS, net debt was £1,816.9m (30
September 2024: £1,681.6m), including lease liabilities of £1,242.7m (30
September 2024: £1,089.1m).
Based on the pre-IFRS16 net debt of £574.2m at 30 September 2025, leverage
(net debt/EBITDA) was 1.6x, towards the bottom of our medium-term target range
of 1.5-2.0x.
The table below highlights the movements in net debt in the period on a
pre-IFRS 16 basis.
2025 2024
£m £m
Net debt excluding lease liabilities opening (Pre-IFRS 16 basis) 592.5 392.2
Free cash flow (50.7) 232.5
Impact of foreign exchange rates 32.8 (23.8)
Other (0.4) (8.4)
Net debt excluding lease liabilities closing (Pre-IFRS 16 basis) 574.2 592.5
Lease liabilities 1,242.7 1,089.1
Net debt including lease liabilities closing (IFRS basis) 1,816.9 1,681.6
Alternative Performance Measures
The Directors use alternative performance measures for analysis as they
believe these measures provide additional useful information on the underlying
trends, performance and position of the Group. The alternative performance
measures are not defined by IFRS and therefore may not be directly comparable
with other companies' performance measures and are not intended to be a
substitute for IFRS measures.
1. Revenue measures
As the Group is present in 38 countries, it is exposed to translation risk on
fluctuations in foreign exchange rates, and as such the Group's reported
revenue and operating profit/loss will be impacted by movements in actual
exchange rates. The Group presents its financial results on a constant
currency basis in order to eliminate the effect of foreign exchange rates and
to evaluate the underlying performance of the Group's businesses. The table
below reconciles reported revenue to constant currency sales.
(£m) North UK Continental Europe APAC & Total
America
EEME
2025 Revenue at actual rates by region 852.3 961.7 1,204.5 620.0 3,638.5
Impact of foreign exchange 29.5 0.4 8.3 26.0 64.2
2025 Revenue at constant currency¹ 881.8 962.1 1,212.8 646.0 3,702.7
2024 Revenue at actual rates by region 813.9 892.4 1,207.4 519.4 3,433.2
Constant currency sales growth
Which is made up of: % % % % %
Like-for-like sales growth² (0.4) 6.6 1.6 9.7 3.7
Net contract gains³(,)⁴ 8.7 1.2 (1.1) 14.6 4.1
Total constant currency sales growth 8.3 7.8 0.5 24.3 7.8
Impact of exchange rates (3.6) 0 (0.7) (4.8) (1.8)
Total actual currency sales growth 4.7 7.8 (0.2) 19.4 6.0
(1) Constant currency is based on average 2024 exchange rates weighted over
the financial year by 2024 results.
(2) Like-for-like sales represent revenues generated in an equivalent period
in each financial year in outlets which have been open for a minimum of 12
months. Like-for-like sales are presented on a constant currency basis.
(3) Revenue in outlets which have been open for less than 12 months and prior
period revenues in respect of closed outlets are excluded from like-for-like
sales and classified as contract gains. Net contract gains are presented on a
constant currency basis.
(4) The impact of acquisitions, exit of our DACH MSA business and transfer of
our Mumbai lounge business into an associate has been included in net contract
gains.
2. Non-underlying profit items
The Group presents underlying profit/(loss) measures, including operating
profit/(loss), profit/(loss) before tax, and earnings per share, which exclude
a number of items which are not considered reflective of the normal trading
performance of the business, and are considered exceptional because of their
size, nature or incidence. The table below provides a breakdown of the
non-underlying items in both the current and prior year under IFRS.
2025 2024
£m £m
Operating costs
Impairment of goodwill (32.3) (9.6)
Impairment of property, plant and equipment (50.7) (17.1)
Impairment of right-of-use assets (33.8) (6.3)
Litigation settlements - 8.5
Site exit costs (13.8) (1.2)
Gain on derecognition of leases 2.5 8.9
Transaction costs (7.1) (10.8)
Restructuring costs (12.7) (6.7)
IT Transformation costs (33.4) -
Other non-underlying costs (1.7) (6.4)
(183.0) (40.7)
Finance expenses
Debt refinancing & effective interest rate adjustments 0.3 2.3
Profit before tax (182.7) (38.4)
Taxation
Tax credit/(charge) on non-underlying items 12.6 0.3
Total non-underlying items (170.1) (38.1)
Further details of the non-underlying operating items have been provided in
the Financial Review section on page 11. Furthermore, a reconciliation from
the underlying to the IFRS reported basis is presented below:
2025 2024
Underlying Non-underlying Items IFRS Underlying Non-underlying Items IFRS
Operating profit/(loss) (£m) 269.1 (183.0) 86.1 246.6 (40.7) 205.9
Operating margin 7.4% (5.0)% 2.4% 7.2% (1.2)% 6.0%
Profit/(loss) before tax (£m) 172.3 (182.7) (10.4) 157.0 (38.4) 118.6
Earnings/(loss) p/share (p) 11.0 (20.3) (9.3) 8.1 (4.7) 3.4
3. Pre-IFRS 16 basis
In addition to our reported results under IFRS we have decided to also
maintain the reporting of our profit and other key KPIs like net debt on a
pre-IFRS 16 basis. This is because the pre-IFRS 16 profit is consistent with
the financial information used to inform business decisions and investment
appraisals. It is our view that presenting the information on a pre-IFRS 16
basis will provide a useful and necessary basis for understanding the Group's
results. As such, commentary has also been included in the Business Review,
Financial Review and other sections with reference to underlying profit
measures computed on a pre-IFRS 16 basis.
A reconciliation of key underlying profit measures to 'Pre-IFRS 16' numbers is
presented below:
Year ended 30 September 2025 Year ended 30 September 2024
Notes Underlying Impact of Underlying Pre-IFRS 16 Underlying Impact of Underlying Pre-IFRS 16
IFRS IFRS 16 £m IFRS IFRS 16 £m
£m £m £m £m
Revenue 2 3,638.5 - 3,638.5 3,433.2 - 3,433.2
Operating costs 4 (3,369.4) (46.3) (3,415.7) (3,186.6) (41.0) (3,227.6)
Operating profit/(loss) 269.1 (46.3) 222.8 246.6 (41.0) 205.6
Share of profit from associates 8.2 0.2 8.4
5.4 0.2 5.6
Finance income 5 12.1 - 12.1 19.1 - 19.1
Finance expense 5 (117.1) 66.5 (50.6) (114.1) 62.1 (52.0)
Profit before tax 172.3 20.4 192.7 157.0 21.3 178.3
Taxation (26.2) (11.1) (37.3) (33.4) (1.4) (34.8)
Profit for the year 146.1 9.3 155.4 123.6 19.9 143.5
Profit attributable to:
Equity holders of the parent 88.4 6.6 95.0
64.9 15.1 80.0
Non-controlling interests 57.7 2.7 60.4 58.7 4.8 63.5
Profit for the period 146.1 9.3 155.4 123.6 19.9 143.5
Earning per share (pence):
- Basic 3 11.0 11.9 8.1 10.0
- Diluted 3 11.0 11.8 8.1 9.9
Underlying operating profit is £46.3m lower on a pre-IFRS 16 basis, as adding
back the depreciation of the right-of-use assets of £276.8m does not fully
offset the recognition of fixed rents of £(321.8)m and the gain on
derecognition of leases of £(1.3)m. Profit before tax is £20.4m higher on a
pre-IFRS 16 basis as a result of adding back £66.5m in finance charges on
lease liabilities and £0.2m on the share of profit from associates. The
impact of IFRS 16 on net debt is primarily the recognition of the lease
liability balance.
The tax effect of the net IFRS 16 impact is sensitive to the geographic mix of
the IFRS 16 adjustments which can differ year to year. The tax effect reflects
a combination of higher tax rates in certain jurisdictions, as well as the
impact of temporary differences in some countries for which no deferred tax
asset is recognised.
A reconciliation between pre-IFRS 16 underlying EBITDA and pre-IFRS 16
underlying operating profit for the period is:
2025 2024
£m £m
Pre-IFRS 16 underlying EBITDA 364.1 342.9
Depreciation of property, plant and equipment (130.8) (128.7)
Amortisation of intangible assets (10.5) (8.6)
Pre-IFRS 16 underlying operating profit 222.8 205.6
Furthermore, a reconciliation from pre-IFRS 16 underlying operating profit to
the IFRS profit/(loss) after tax is as follows:
2025 2024
£m £m
Pre-IFRS 16 underlying operating profit for the year 222.8 205.6
Depreciation of right-of-use assets (276.8) (236.1)
Fixed rent on leases 321.8 274.8
Gain on derecognition of leases 1.3 2.3
Non-underlying operating expenses (note 4) (183.0) (40.7)
Share of profit from associates 8.2 5.4
Net finance expense (105.0) (95.0)
Non-underlying finance income (note 5) 0.3 2.3
Taxation (13.6) (33.1)
IFRS (Loss)/Profit after tax (24.0) 85.5
A reconciliation of underlying operating profit to profit before and after tax
is provided as follows:
2025 2024
£m £m
Underlying operating profit 269.1 246.6
Non-underlying operating expenses (note 4) (183.0) (40.7)
Share of profit from associates 8.2 5.4
Finance income 12.1 19.1
Finance expense (117.1) (114.1)
Non-underlying finance income (note 5) 0.3 2.3
IFRS (Loss)/Profit before tax (10.4) 118.6
Taxation (13.6) (33.1)
IFRS Profit after tax (24.0) 85.5
4. Return on capital employed
The calculation of the Group's return on capital employed ("ROCE") is set out
below:
Capital employed 2025 2024
£m £m
Net assets 269.0 383.2
Adjustments to exclude:
Impairments of FY25 & FY24 149.8 -
Net debt 574.2 592.5
Non-controlling interests share of equity (186.8) (156.0)
Tax assets and liabilities (48.0) (32.1)
Lease assets and liabilities 91.0 57.1
Other long term liabilities 52.4 48.1
Capital Employed 901.6 892.8
Average Capital Employed 897.2 798.5
Return 2025 2024
£m £m
Underlying Operating Profit (pre-IFRS 16 basis) 222.8 205.6
Non Controlling interests share excluded (63.8) (70.1)
Profit from Associates included 8.4 5.6
Adjusted Return 167.4 141.1
ROCE% 18.7% 17.7%
The calculation is used as a measure of the average capital that the Group has
utilised to generate returns to shareholders. Return is defined as underlying
pre-IFRS 16 operating profit, adjusted for Associates and Non-controlling
interests. Capital Employed is defined as Group Net Assets adjusted to exclude
Net Debt, tax assets and liabilities, lease and other long term liabilities,
Non-controlling interests share of equity and adding back capital written off
through impairments. The prior period impairments have not been used to
restate the 2024 calculation (2024 ROCE would have been 17.3% instead of
17.7%) but have been taken into account to calculate the average capital
employed for 2025.
5. Liquidity and cashflow
Liquidity remains a key KPI for the Group. Available liquidity as at 30
September 2025 has been computed as £661.8m, comprising cash and cash
equivalents of £342.0m, and undrawn credit facilities of £319.8m.
A reconciliation of free cashflow to underlying operating profit is shown on
page 17.
Principal risks
During the year, the Board has undertaken a detailed review of the Company's
principal and emerging risks. The Board review concluded that no additions or
deletions were required, however two key changes to existing principal risks
are highlighted:
· Expansion into new markets: risk appetite has changed from 'willing'
to 'cautious'.
· Food safety and allergen management: renamed from 'product safety and
quality' to provide a more meaningful and explicit description of this
critical area of risk.
The Group's redefined "Principal risks", together with the Group's risk
management process, will be set out in the 2025 Annual Report and Accounts,
and relate to the following areas: Geo-political and macroeconomic events and
trends, Information security, stability and resilience, Competitive landscape
- changing client, competitor and consumer behaviour, Health & Safety,
Product safety and quality, Expansion into new markets, Sustainability, Supply
chain and product cost inflation, Legal & regulatory compliance,
Realisation of returns on capital invested, People - talent acquisition &
retention, organisational structure and culture, Availability of labour and
wage inflation.
Geert Verellen
Group CFO
3 December 2025
Consolidated income statement
for the year ended 30 September 2025
Year ended 30 September 2025 Year ended 30 September 2024
Notes Underlying(1) Non-underlying items IFRS Underlying(1) Non-underlying items IFRS
£m £m £m £m £m £m
Revenue 2 3,638.5 - 3,638.5 3,433.2 - 3,433.2
Operating costs 4 (3,369.4) (183.0) (3,552.4) (3,186.6) (40.7) (3,227.3)
Of which impairments 4 - (116.8) (116.8) - (33.0) (33.0)
Operating profit 269.1 (183.0) 86.1 246.6 (40.7) 205.9
Share of profit of associates 8.2 - 8.2 5.4 - 5.4
Finance income 5 12.1 0.3 12.4 19.1 - 19.1
Finance expense 5 (117.1) - (117.1) (114.1) 2.3 (111.8)
Profit/(loss) before tax 172.3 (182.7) (10.4) 157.0 (38.4) 118.6
Taxation (26.2) 12.6 (13.6) (33.4) 0.3 (33.1)
Profit/(loss) for the year 146.1 (170.1) (24.0) 123.6 (38.1) 85.5
Profit/(loss) attributable to:
Equity holders of the parent 88.4 (162.8) (74.4) 64.9 (37.5) 27.4
Non-controlling interests 57.7 (7.3) 50.4 58.7 (0.6) 58.1
Profit/(loss) for the year 146.1 (170.1) (24.0) 123.6 (38.1) 85.5
Earnings per share (p):
- Basic 3 11.0 (9.3) 8.1 3.4
- Diluted 3 11.0 (9.3) 8.1 3.4
(1) Stated on an underlying basis, which excludes non-underlying items as
further explained in the section on Alternative Performance Measures (APMs) on
pages 19-23. The classification of taxation follows the classification of the
taxed items. Items previously recognised as non-underlying or underlying, in
the event of their reversal, are recognised in accordance with their original
classification.
Consolidated statement of other comprehensive income
for the year ended 30 September 2025
2025 2024
£m £m
Other comprehensive income/(expense)
Items that will never be reclassified to the income statement
Remeasurements on defined benefit pension schemes (1.1) (0.2)
Tax credit relating to items that will not be reclassified 0.3 0.1
Items that are or may be reclassified subsequently to the income statement
Net (loss)/gain on hedge of net investment in foreign operations (26.9) 36.1
Other foreign exchange translation differences (10.4) (50.5)
Effective portion of changes in fair value of cash flow hedges 0.1 (0.7)
Cash flow hedges - reclassified to income statement - -
Tax credit relating to items that are or may be reclassified 0.6 0.6
Other comprehensive (expense)/income for the year (37.4) (14.6)
(Loss)/Profit for the year (24.0) 85.5
Total comprehensive (loss)/income for the year (61.4) 70.9
Total comprehensive income/(expense) attributable to:
Equity shareholders (106.1) 24.5
Non-controlling interests 44.7 46.4
Total comprehensive (loss)/income for the year (61.4) 70.9
Consolidated balance sheet
as at 30 September 2025
Notes 2025 2024
£m £m
Non-current assets
Property, plant and equipment 724.2 696.8
Goodwill and intangible assets 719.6 755.7
Right-of-use assets 1,161.1 1,032.0
Investments in associates 22.0 21.5
Deferred tax assets 98.6 84.2
Other receivables 108.0 105.7
2,833.5 2,695.9
Current assets
Inventories 45.6 45.5
Tax receivable 8.2 10.0
Trade and other receivables 194.8 166.7
Cash and cash equivalents 342.0 254.8
590.6 477.0
Total assets 3,424.1 3,172.9
Current liabilities
Short-term borrowings 8 (118.5) (12.2)
Trade and other payables (868.9) (717.0)
Tax payable (22.6) (22.4)
Lease liabilities (321.9) (298.7)
Provisions (16.2) (26.1)
(1,348.1) (1,076.4)
Non-current liabilities
Long-term borrowings 8 (797.7) (835.1)
Post-employment benefit obligations (8.2) (10.7)
Lease liabilities (920.8) (790.4)
Other payables (1.7) (1.5)
Provisions (41.9) (35.2)
Deferred tax liabilities (36.2) (39.7)
Interest rate swaps (0.6) (0.7)
(1,807.1) (1,713.3)
Total liabilities (3,155.2) (2,789.7)
Net assets 268.9 383.2
Equity
Share capital 8.6 8.6
Share premium 472.7 472.7
Capital redemption reserve 1.2 1.2
Other reserves (63.3) (20.7)
Retained losses (337.1) (234.6)
Total equity shareholders' funds 82.1 227.2
Non-controlling interests 186.8 156.0
Total equity 268.9 383.2
Consolidated statement of changes in equity
for the year ended 30 September 2025
Share capital Share premium Capital redemption reserve Other reserves(1) Retained losses Total parent equity NCI Total equity
£m £m £m £m £m £m £m £m
At 1 October 2023 8.6 472.7 1.2 (18.2) (238.1) 226.2 95.9 322.1
Profit for the year - - - - 27.4 27.4 58.1 85.5
Other comprehensive expense for the year - - - (2.8) (0.1) (2.9) (11.7) (14.6)
Capital contributions from NCI - - - - - - 51.1 51.1
Dividends paid to non controlling interests - - - - - - (44.1) (44.1)
Dividends paid to shareholders - - - - (29.5) (29.5) - (29.5)
Purchase of additional stake in subsidiary - - - (6.2) - (6.2) 6.7 0.5
Transactions with non-controlling interests - - - 6.5 - 6.5 - 6.5
Share-based payments - - - - 5.7 5.7 - 5.7
At 30 September 2024 8.6 472.7 1.2 (20.7) (234.6) 227.2 156.0 383.2
Profit for the year - - - - (74.4) (74.4) 50.4 (24.0)
Other comprehensive expense for the year - - - (30.9) (0.8) (31.7) (5.7) (37.4)
Capital contributions from NCI - - - - - - 33.6 33.6
Dividends paid to non controlling interests - - - - - - (48.9) (48.9)
Dividends paid to shareholders - - - - (29.6) (29.6) - (29.6)
Purchase of additional stake in subsidiary - - - (11.4) - (11.4) (1.1) (12.5)
Transactions with non-controlling interests - - - - - - 3.0 3.0
Share-based payments - - - - 1.9 1.9 - 1.9
Other movements - - - (0.3) 0.4 0.1 (0.5) (0.4)
At 30 September 2025 8.6 472.7 1.2 (63.3) (337.1) 82.1 186.8 268.9
( )
(1) At 30 September 2024 and 30 September 2025, the other reserves include the
translation reserve and the result of purchasing additional stakes in
subsidiaries.
Consolidated cash flow statement
for the year ended 30 September 2025
Notes 2025 2024
£m £m
Cash flows from operating activities
Cash flow from operations 6 769.6 592.5
Tax paid (27.4) (26.0)
Net cash flows from operating activities 742.2 566.5
Cash flows from investing activities
Dividends received from associates 7.2 9.6
Interest received 9.7 12.5
Purchase of property, plant and equipment (224.8) (260.2)
Disposal of subsidiary 0.6 -
Purchase of other intangible assets (21.6) (36.9)
Acquisition of associates - (10.5)
Disposal of property, plant and equipment 0.5 -
Acquisition of subsidiaries, net of cash acquired (10.5) (128.4)
Net cash flows from investing activities (238.9) (413.9)
Cash flows from financing activities
Repayment of bank borrowings (12.7) (12.3)
Debt refinancing and modification fees paid (0.4) (0.5)
Drawdown of USPP debt 200.7 205.4
Repayment of the Term Loan (150.0) -
Loans (repaid to)/taken from non-controlling interests 3.9 5.0
Payment of lease liabilities - principal (262.5) (218.6)
Payment of lease liabilities - interest (66.5) (62.1)
Interest paid excluding interest on lease liabilities (47.2) (47.8)
Dividends paid to non-controlling interests (48.9) (44.1)
Dividends paid to shareholders (29.6) (29.5)
Acquisition of 1.01% of TFS (12.5) -
Recapitalisation/capital contributions into associate - (0.8)
Capital contribution from non-controlling interests 15.0 18.3
Net cash flows from financing activities (410.7) (187.0)
Net increase/ (decrease) in cash and cash equivalents 92.6 (34.4)
Cash and cash equivalents at beginning of the year 254.8 303.3
Effect of exchange rate fluctuations on cash and cash equivalents (5.4) (14.1)
Cash and cash equivalents at end of the year 342.0 254.8
Reconciliation of net cash flow to movement in net debt
Net increase / (decrease) in cash in the year 92.6 (34.4)
Cash (inflow) from USPP facility (200.7) (205.4)
Cash outflow/(inflow) from other changes in debt 158.8 7.3
Change in net debt resulting from cash flows, excluding lease liabilities 50.7 (232.5)
Translation differences (32.9) 23.8
Other non-cash changes 0.5 8.4
Increase in net debt excluding lease liabilities in the year 18.3 (200.3)
Net debt at beginning of the year (592.5) (392.2)
Net debt excluding lease liabilities at end of the year (574.2) (592.5)
Recognition of lease liabilities upon transition to IFRS 16
Lease liabilities at beginning of the year (1,089.1) (1,028.7)
Cash outflow from payment of lease liabilities 329.0 280.7
Lease amendments (466.9) (383.9)
Translation differences (15.7) 42.8
Lease liabilities at end of the year (1,242.7) (1,089.1)
Net debt including lease liabilities at end of the year (1,816.9) (1,681.6)
Notes
1 Basis of preparation and accounting policies
1.1 Basis of preparation
SSP Group plc (the Company) is a company incorporated in the United Kingdom
under the Companies Act 2006. The Group financial statements consolidate those
of the Company and its subsidiaries (together referred to as the Group) and
equity-account the Group's interest in its associates. These condensed
financial statements have been prepared in accordance with UK-adopted
International Accounting Standards('IAS') and do not constitute the full
financial statements of the Group (see note 10).
The financial statements are presented in Sterling, which is the Company's
functional currency. All information is given to the nearest £0.1 million.
The financial statements are prepared on the historical cost basis, except in
respect of financial instruments (including derivative instruments) and
defined benefit pension schemes for which assets are measured at fair value,
as explained in the accounting policies below.
1.2 Going concern
These financial statements are prepared on a going concern basis.
The Board has reviewed the Group's financial forecasts as part of the
preparation of its financial statements, including cash flow forecasts
prepared for a period of twelve months from the date of approval of these
financial statements ("the going concern period") and taking into
consideration a number of different scenarios. Having carefully reviewed these
forecasts, the Directors have concluded that it is appropriate to adopt the
going concern basis of accounting in preparing these financial statements for
the reasons set out below.
In making the going concern assessment, the Directors have considered forecast
cash flows and the liquidity available over the going concern period. In doing
so they assessed a number of scenarios, including a base case scenario and a
plausible downside scenario. The base case scenario reflects an expectation of
a modest growth in passenger numbers in most of our key markets during the
forecast period, augmented by the ongoing roll-out of our new business
pipeline.
With some uncertainty surrounding the economic and geo-political environment
over the next twelve months, a downside scenario has also been modelled,
applying severe but plausible assumptions to the base case. This downside
scenario reflects a pessimistic view of the travel markets for the remainder
of the current financial year, assuming sales that are around 5% lower than in
the base case scenario.
In both its base case and downside case scenarios, the Directors are confident
that the Group will have sufficient funds to continue to meet its liabilities
as they fall due for a period of at least 12 months from the date of approval
of the financial statements, and that it will have headroom against all
applicable covenant tests throughout this period of assessment. The Directors
have therefore deemed it appropriate to prepare the financial statements for
the year ended 30 September 2025 on a going concern basis.
1.3 Changes in accounting policies and disclosures
The following amended standards and interpretations have been adopted by the
Group in the current period:
• Classification of liabilities as current or non-current
(Amendments to IAS 1)
• IAS 1 'Presentation of Financial Statements' (amendments) -
classification of liabilities as current or non-current and non-current
liabilities with covenants
• IFRS 16 'Leases' (amendments) - lease liability in a sale and
leaseback
• IFRS 7 'Financial Instruments: Disclosures' & IAS 7 'Statement
of Cash Flows' (amendments)
- supplier finance arrangements
There is no significant impact of adopting these new standards on the Group's
consolidated financial statements.
1.4 New accounting standards not yet adopted by the Group
The following amended standards and interpretations are not expected to have a
significant impact on the Group's consolidated financial statements:
• Amendments to IAS 21 'Lack of Exchangeability'.
2 Segmental reporting
SSP operates in the food and beverage travel sector, mainly at airports and
railway stations.
Management monitors the performance and strategic priorities of the business
from a geographic perspective, and in this regard has identified the following
four key "reportable segments": North America, the UK, Continental Europe,
and APAC & EEME. North America includes operations in the United States,
Canada and Bermuda; The UK includes operations in the United Kingdom and the
Republic of Ireland; Continental Europe includes operations in the Nordic
countries and in Western and Southern Europe; and APAC & EEME includes
operations in Asia Pacific, India, Italy, Greece, Cyprus, Bulgaria, Eastern
Europe and the Middle East, and South America. These segments comprise
countries which are at similar stages of development and demonstrate similar
economic characteristics.
The Group's management assesses the performance of the operating segments
based on revenue and underlying operating profit. Interest income and
expenditure are not allocated to segments, as they are managed by a central
treasury function, which oversees the debt and liquidity position of the
Group. The non-attributable segment comprises costs associated with the
Group's head office function and depreciation of central assets.
North America UK Continental Europe APAC & EEME Non-attributable Total
£m £m £m £m £m £m
Year ended 30 September 2025
Revenue 852.3 961.7 1,204.5 620.0 0 3,638.5
Operating profit/(loss) 95.4 86.1 (47.9) 50.5 (98.0) 86.1
Underlying operating profit/(loss) 99.4 90.3 42.4 90.5 (53.5) 269.1
Non-underlying operating (loss)/profit (4.0) (4.2) (90.3) (40.0) (44.5) (183.0)
Year ended 30 September 2024
Revenue 813.9 892.5 1,207.4 519.4 - 3,433.2
Operating profit/(loss) 79.9 73.5 10.5 79.6 (37.6) 205.9
Underlying operating profit/(loss) 87.6 79.4 39.1 82.7 (42.2) 246.6
Non-underlying operating (loss)/profit (7.7) (5.9) (28.6) (3.1) 4.6 (40.7)
The following amounts are included in underlying operating profit:
North America UK Continental Europe APAC & EEME Non-attributable Total
Year ended 30 September 2025 £m £m £m £m £m £m
Depreciation and amortisation (92.4) (62.1) (181.1) (73.0) (9.4) (418.0)
Year ended 30 September 2024
Depreciation and amortisation (87.7) (54.9) (174.1) (48.8) (7.9) (373.4)
A reconciliation of underlying operating profit to profit before and after tax
is provided as follows:
2025 2024
£m
£m
Underlying operating profit 269.1 246.6
Non-underlying operating loss (note 4) (183.0) (40.7)
Share of profit from associates 8.2 5.4
Finance income 12.1 19.1
Finance expense (117.1) (114.1)
Non-underlying finance income (note 5) 0.3 2.3
Profit before tax (10.4) 118.6
Taxation (13.6) (33.1)
Profit after tax (24.0) 85.5
3 Earnings per share
Basic earnings per share is calculated by dividing the result for the year
attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the year. Diluted earnings per share is
calculated by dividing the result for the year attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding
during the year adjusted by potentially dilutive outstanding share options.
Underlying earnings per share is calculated the same way except that the
result for the year attributable to ordinary shareholders is adjusted for
specific items as detailed below:
2025 2024
£m £m
(Loss)/Profit attributable to ordinary shareholders (74.4) 27.4
Adjustments:
Non-underlying operating expense 183.0 40.7
Non-underlying share of loss of associate - -
Non-underlying finance income (0.3) (2.3)
Tax effect of adjustments (12.6) (0.3)
Non-underlying costs attributable to NCI (7.3) (0.6)
Underlying profit attributable to ordinary shareholders 88.4 64.9
Basic weighted average number of shares 800,548,333 797,868,792
Dilutive potential ordinary shares 3,766,369 6,638,020
Diluted weighted average number of shares 804,314,702 804,506,812
Earnings/(loss) per share (p):
- Basic (9.3) 3.4
- Diluted (9.3) 3.4
Underlying earnings per share (p):
- Basic 11.0 8.1
- Diluted 11.0 8.1
The number of ordinary shares in issue as at 30 September 2025 was 801,676,196
which excludes treasury shares (30 September 2024: 798,495,196). As at 30
September 2025, the Company also held 263,499 treasury shares (2024: 263,499).
Potential ordinary shares can only be treated as dilutive when their
conversion to ordinary shares would decrease earnings per share.
4 Operating costs
2025 2024
£m £m
Cost of food and materials:
Cost of inventories consumed in the year (983.0) (937.0)
Labour cost:
Employee remuneration (1,105.1) (1,030.1)
Overheads:
Depreciation of property, plant and equipment (130.8) (128.7)
Depreciation of right-of-use assets (276.8) (236.1)
Amortisation of intangible assets (10.4) (8.6)
Non-underlying operating costs (183.0) (40.7)
Gain on lease derecognition 1.3 2.3
Rentals payable under leases (457.4) (463.8)
Other overheads (407.2) (384.6)
(3,552.4) (3,227.3)
Non-underlying operating items
The non-underlying operating costs in each year are shown below.
2025 2024
£m £m
Impairment of goodwill (32.3) (9.6)
Impairment of property, plant and equipment (50.7) (17.1)
Impairment of right-of-use assets (33.8) (6.3)
Site exit costs (13.8) (1.2)
IT transformation costs (33.4) -
Litigation settlement - 8.5
Transaction costs (7.1) (10.8)
Restructuring costs (12.7) (6.7)
Gain on lease derecognition 2.5 8.9
Other non-underlying costs (1.7) (6.4)
Total non-underlying operating items (183.0) (40.7)
For information on the nature and breakdown of these items, see the detail
under non-underlying operating items on page 11.
5 Finance income and expense
2025 2024
£m £m
Finance income
Interest income 9.4 12.5
Net foreign exchange gains 2.7 6.6
Other 0.3 -
Total finance income 12.4 19.1
Finance expense
Total interest expense on financial liabilities measured at amortised cost (50.6) (52.2)
Lease interest expense (66.3) (62.1)
Debt refinancing gains/(loss) (0.4) (0.5)
Effective interest rate adjustment 0.4 2.8
Net change in fair value of cash flow hedges utilised in the year 1.0 1.4
Unwind of discount on provisions (1.1) (0.7)
Net interest (expense)/gain on defined benefit pension obligations (0.1) (0.5)
Total finance expense (117.1) (111.8)
6 Cash flow from operations
2025 2024
£m £m
(Loss)/Profit for the year (24.0) 85.5
Adjustments for:
Depreciation of property, plant and equipment 130.8 128.7
Depreciation of right-of-use assets 276.8 236.1
Amortisation of intangible assets 10.4 8.6
Profit on derecognition of leases (3.8) (11.2)
Impairments & other non-underlying costs 116.8 33.0
IT transformation costs 24.5 -
Share-based payments 1.9 5.7
Finance income (12.4) (19.1)
Finance expense 117.1 111.8
Share of profit of associates (8.2) (5.4)
Taxation 13.6 33.1
Gain on disposal of subsidiary (1.0) -
Other (2.3) 4.2
640.2 611.0
(Increase)/decrease in trade and other receivables (11.2) 5.5
Increase in inventories - (2.2)
Increase/(decrease) in trade and other payables including provisions 140.6 (21.8)
Cash flow from operations 769.6 592.5
7 Dividends
The following dividends were paid in the year per qualifying ordinary share:
Payment date 2025 2024
£m £m
2.3p final dividend for 2024 (final dividend for 2023: 2.5p) 27 February 2025 18.4 18.4
1.4p interim dividend for 2025 (interim dividend for 2024: 1.2p) 27 June 2025 11.2 11.2
After the balance sheet date, a final dividend of 2.8p per share per
qualifying ordinary share (£22.4m) was proposed by the directors, in line
with the pay-out ratio for the full year at between 30% and 40% of underlying
pre-IFRS 16 earnings per share. The final dividend will be paid, subject to
shareholder approval, on 27 February 2026 to shareholders on the register on
30 January 2026. The dividends have not been provided for.
After the balance sheet date, a final dividend of 2.8p per share per
qualifying ordinary share (£22.4m) was proposed by the directors, in line
with the pay-out ratio for the full year at between 30% and 40% of underlying
pre-IFRS 16 earnings per share. The final dividend will be paid, subject to
shareholder approval, on 27 February 2026 to shareholders on the register on
30 January 2026. The dividends have not been provided for.
8 Fair value measurement
Certain of the Group's financial instruments are held at fair value.
The fair values of financial instruments held at fair value have been
determined based on available market information at the balance sheet date.
The fair values of the Group's borrowings are calculated based on the present
value of future principal and interest cash flows, discounted at the market
rate of interest at the balance sheet date.
Carrying value and fair values of certain financial instruments
The following table shows the carrying value of financial assets and financial
liabilities.
As at As at
30 September 2025 30 September 2024
£m £m
Financial assets measured at amortised cost
Cash and cash equivalents 342.0 254.8
Trade and other receivables 253.0 214.3
Total financial assets measured at amortised cost 595.0 469.1
Non-derivative financial liabilities measured at amortised cost
Bank loans (175.4) (326.3)
US private placement notes (740.8) (521.0)
Lease liabilities (1,242.7) (1,089.1)
Trade and other payables (838.0) (689.0)
Total financial liabilities measured at amortised cost (2,996.9) (2,625.4)
Derivative financial liabilities
Interest rate swaps (0.6) (0.7)
Total derivative financial liabilities (0.6) (0.7)
Financial assets and liabilities in the Group's consolidated balance sheet are
either held at fair value, or their carrying value where it approximates to
fair value, with the exception of loans which are held at amortised cost. The
fair value of total borrowings excluding lease liabilities estimated using
market prices at 30 September 2025 was £917.2m (30 September 2024: £847.8m).
Financial assets and liabilities are measured at fair value and are classified
as level 2. This uses the fair value hierarchy whereby inputs, which are used
in the valuation of these financial assets, and liabilities have a significant
effect on the fair value, are observable either directly or indirectly. There
were no transfers during the period.
9 Post balance sheet events
On 17 October 2025 the Group raised EUR180m via a Term Loan with two of its
existing lending banks to fully repay and cancel the pre-existing EUR Term
Loan entered into in 2023. This new Term Loan has a two-year maturity with an
option to extend for a further year.
On 6 October 2025, the Group commenced a £100m share buyback programme.
10 Annual General Meeting
The Group's Annual General Meeting will be held in January 2026. Details of
the resolutions to be proposed at that meeting will be included in the notice
of Annual General Meeting that will be sent to shareholders in December 2025.
11 Other information
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 September 2025 or 30 September 2024
but is derived from those accounts. Statutory accounts for year ended 30
September 2024 have been delivered to the Registrar of Companies, and those
for year ended 30 September 2025 will be delivered in due course.
The auditor has reported on the accounts for the year ended 30 September 2025;
their report was:
i. unqualified, and
ii. did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The Company's Annual Report and Accounts for the year ended 30 September 2025
will be posted and made available to shareholders on the Company's website in
January 2026.
12 Forward looking statement
Certain information included in this announcement is forward looking and
involves risks, assumptions and uncertainties that could cause actual results
to differ materially from those expressed or implied by forward looking
statements.
Forward looking statements cover all matters which are not historical facts
and include, without limitation, projections relating to results of operations
and financial conditions and the Company's plans and objectives for future
operations, including, without limitation, discussions of expected future
revenues, financing plans, expected expenditures and divestments, risks
associated with changes in economic conditions, the strength of the food and
support services markets in the jurisdictions in which the Group operates,
fluctuations in food and other product costs and prices and changes in
exchange and interest rates. Forward looking statements can be identified by
the use of forward looking terminology, including terms such as 'believes',
'estimates', 'anticipates', 'expects', 'forecasts', 'intends', 'plans',
'projects', 'goal', 'target', 'aim', 'may', 'will', 'would', 'could' or
'should' or, in each case, their negative or other variations or comparable
terminology. Forward looking statements in this results announcement are not
guarantees of future performance. All forward looking statements in this
results announcement are based upon information known to the Company on the
date of this results announcement. Accordingly, no assurance can be given that
any particular expectation will be met and readers are cautioned not to place
undue reliance on forward looking statements, which speak only at their
respective dates.
Additionally, forward looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority), the Company
undertakes no obligation to publicly update or revise any forward looking
statement, whether as a result of new information, future events or otherwise.
Nothing in this announcement shall exclude any liability under applicable laws
that cannot be excluded in accordance with such laws.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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