SSP launches £100m share buyback as FY earnings meet expectations

SSP Group has announced a £100m share buyback after confirming it remains on course to deliver full-year earnings per share (EPS) in line with market expectations.

The operator of food and beverage outlets across airports and railway stations said revenue for the year to 30 September 2025 rose about 8% to £3.7bn, with operating profit expected to reach around £230m – up about 11% year-on-year. Operating margin is forecast at roughly 6.2%, making it 20 basis points higher than the previous year.

At actual exchange rates, full-year EPS is expected to be around 11.5p, a 15% increase on 2024, while constant-currency EPS is estimated at 12.3p, the midpoint of the company’s planned range. Leverage is expected to fall to about 1.6 times net debt to EBITDA, at the lower end of SSP’s target range, supported by strong cash generation and reduced capital spending.

Group sales in the final quarter, covering July to September, rose about 4% year-on-year on a constant currency basis. Growth in Asia Pacific, emerging Europe, the Middle East and North America was partly offset by weaker trading in continental Europe.

In the UK and Ireland, sales rose by 7%, led by strong rail performance, although industrial action on the London Underground in early September reduced growth by about 0.5%. In Asia Pacific and emerging Europe, sales increased by 12%, driven by gains in Australia and Malaysia but held back by lower air capacity in India and geopolitical tensions in the Middle East.

Continental Europe sales fell 3% as SSP continued its planned withdrawal from motorway service operations in Germany, with the exit expected to be largely complete in the first half of 2026. The group said profitability in France and Germany remained below target but initiatives to improve margins were underway, including cost reductions, rent restructuring and reduced capital expenditure.

Net debt is expected to be below £600m at year end, following capital investment of about £220m, with return on capital employed forecast to rise from last year’s pre-tax figure of 17.7%.

Patrick Coveney, chief executive of SSP Group, said: “Our UK and Asia Pacific businesses have traded particularly well and, taken in aggregate, our performance leaves us on track to deliver earnings per share for FY25 in line with current market expectations.

“In addition, facilitated by our strong cash generation and given our confidence in the outlook for next year, we are pleased to be announcing a £100m share buyback programme today.”

Looking ahead to 2026, SSP said it would continue to focus on cost control and cash generation amid an uncertain travel demand outlook. The group expects to deliver EPS within the current range of market forecasts and to limit capital spending to below £200m.