Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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I'm going to enjoy seeing Slipperman55 consume some humble pie on results day... This is fast headed towards 275p, the boom in travel is massive.
There is so much fundamentally flawed with this company. Unless you have stumbled out of the pub at 11PM and need to have some crap food in the mistaken impression that by time you get off the train you will be sober, then its all a terrible value proposition. Food quality is awful, costs are terrible and the company margins are just dire. I don't think many people who work in their sites actually enjoy being there and senior management are very ordinary. The company ethos is centers around lowering supply chain costs and not improving product quality. They survive because they have a large number of historic travel hub sites and rail and air landlords are lazy and also very ordinary. They have never really built any value added credible brands, which tells you all you need to know. If there is an alternative shop then you wouldn't use SSP. Their rents are all % turnover based which is the main driver for exorbitant pricing. Most, but not all, stores look pretty tired. Hats off to SSP for coming through COVID which is not mean achievement, otherwise nothing to admire.
Added on recent weakness as this seems well on way to recovey, leaner and stronger. Healthy Footfall will run straight through to profit and thanksgiving and Christmas ahead and the UK cold - this should run and run.
Dividend certainly near term and onwards and upwards.
5th December for Prelim Results (Source: https://www.foodtravelexperts.com/investors/financial-calendar) - Given they appear to be trading in a sector with healthy demand I'd agree about the theory of restoring the Divi in the not too distant future, perhaps most likely at AGM on 16th Feb, perhaps?
Anyone know when the full year results will be published this year? Wonder if they will announce the re introduction of a dividend?
Have decided to buy some today @ 180p, this SP looks like it favours buyers and will hopefully provide support.
Yup still holding and well under. Don’t get it other than rail strikes and potential issues with inflation and staff costs which seem to be under control. Ah well yet another long term hold 😔
Yep, still holding here Dave, and under water topping up frequently on dips.
I don't get the current drift in share price apart from general market malaise and weak sentiment. The SSP share price is now drifting down to the price when Covid kicked in (not adjusting for the 2021 rights issue), when they weren't even trading. I travel a fair bit, especially on the railways and their eateries at mainline stations look to be doing pretty well.
Like most of the travel sector at the moment, SSP share price is struggling. Companies like Easyjet and IAG are reporting strong trading (above pre-pandemic levels) yet SPs are doing nothing and the one where potential suitors must be running the slide rule over is Mobico (National Express).
Anyone still holding here?
Brilliant sign, shorters are gonna lose
There we go! Huge Director buy on the RNS of £149,475 - Massive vote of confidence in SSPG
Correction to my typo: that last sentence should have read "Debt purism makes zero business sense, just as bingeing on debt makes zero business sense too."
Having read your point I remain in disagreement:
1. EPS range was quoted at 7.0p-7.5p - bottom end of that range suggests 7.0-7.24p. The update did not say below the range so 7.0p appears to be the floor.
2. £305 million still respectable as is £280 million. For 2024 forecast, we'll have to see how that looks come December update... much economic turbulence means that could shift upwards imo as forecasts proving far more pessimistic than reality of company results at the moment.
3. Yes, shorters currently opened up bets on SP falling. Doesn't mean they're correct though. Markets seemingly obsessed with debt reduction but SSPG's debts are already within sensible ranges. Aggressively paying down debts isn't always of benefit (reduces availabile cash to invest for business growth). Also inflation erodes away debts, and a raised level of inflation looks embedded for next 24 months. SSPG can just let inflation erode away a proportion of the debts.
4. Yes, £ falling back somewhat will probably benefit SSPG but be careful on advocating such extreme debt pay downs as manageable debts are no bad thing. Debt purism makes zero business sense, just as binging on debt makes zero business sense too.
Several things
1. EPS at bottom of range (maybe)
2.'24 forecast reduced bottom end to £305 million (v this year £280 million)
3. High capex suggests focus on growth of sales revenue, when market wants focus on debt reduction and profits to allow share buyback (share issue during Covid resulted in 50% more shares and we don't know if management promised temporary increase).
4. GLG increased short on 21st and again on 24th September (see shorttracker). Will have to wait to see accounts in terms of debt reduction/ forex and eps
5. P/E still about 30 and GLG seem to have the bit between their teeth and could be aiming for 200p, but I am holding as expect better forex resulting in better eps. And hope debt has been reduced further and share buy-back will be called.
Highlight Quotes from the latest Trading Update:
"Strong underlying trading momentum is expected to continue through to the end of the financial year, leaving SSP well-positioned to deliver results at the upper end of the ranges previously indicated for both revenue and EBITDA (underlying pre-IFRS 16). - Upper end, why the drop in SP?
"Group revenues are expected to be c.£3.0bn vs £2.2bn in the prior year (at actual exchange rates), representing growth of c.37% year-on-year." - Spectacular revenue growth, now that BoE rates appear to be at, or very near to, peak this growth should be sustained/permanently embedded since no signs at all of deflation (just less inflation, inflation still above 2% target rate).
"pipeline of secured net contract gains is now expected to add over £700m to overall revenues compared to 2019, on an annualised basis, representing at least an additional £75m to the £625m reported at our Interim results in May 2023. We expect these units to open over the next two years, with the normal level of pre-opening costs and maturity profile." - New contracts have significantly added to the business, i.e. increased overall size.
"We expect to deliver these results despite the significant strengthening of Sterling against most of our major currencies during the year." - With £ now having somewhat fallen back, could see even better performance Sep-Dec?
"following our significant progress in sustainability reporting and the continued delivery against our strategy, in June 2023, we achieved an MSCI ESG Rating of A" - Superb PR for SSPG.
Cannot get my head around why the significant fall in the SP last week... Okay so perhaps this quote might be suggesting a part of the reason: "This would represent full year revenue of c.£3.0bn and EBITDA (underlying pre-IFRS 16) of c.£280m with a corresponding EPS (underlying pre-IFRS 16) towards the lower end of the previously indicated range of 7.0-7.5p." - I.e. 7.0p) - However, with the group still more than profitable in what are turbulent times, and given inflation now much lower than the last 12 months, the future is looking very promising indeed. Esp with a booming travel sector (all travel companies reporting record results).
SSP Group (LON:SSPG) Earns House Stock Rating from Shore Capital
Posted by ABMN Staff on Sep 19th, 2023
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SSP Group plc logoShore Capital restated their house stock rating on shares of SSP Group (LON:SSPG – Free Report) in a research report released on Monday morning, Marketbeat.com reports.
SSPG has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft raised their target price on shares of SSP Group from GBX 325 ($4.03) to GBX 340 ($4.21) and gave the company a buy rating in a research note on Wednesday, June 7th. Peel Hunt reiterated a buy rating and issued a GBX 350 ($4.34) target price on shares of SSP Group in a report on Tuesday, May 23rd. Finally, Barclays restated an overweight rating and set a GBX 290 ($3.59) price target on shares of SSP Group in a report on Thursday, June 15th. Eight research analysts have rated the stock with a buy rating, According to data from MarketBeat, SSP Group has a consensus rating of Buy and a consensus target price of GBX 316.43 ($3.92).
Added at 224..
Inflation down, shares went up. BoE likely to raise interest by 0.25% so shares go down a bit. Pound heading lower possibly helps the sp as sspg are international. Xmas coming up now, so travel should hopefully boost things more.
Added
this is all I could find....
In the FTSE 250, SSP dropped 6.6%. The travel food and beverage outlet operator said trading momentum was strong, and expects an improved annual performance. However, it noted some foreign exchange headwinds, given the recent strength of sterling.
Compared to the basket cases in the stock market this stock should be a buy and hold. Not sure what the market is expecting but give me this stock for my bottom drawer.
Signs that UK food inflation was coming down would be a big boost. They operate on tiny margins that any fall in costs will make a big difference - still struggling to recruit staff and I don't see this improving.
Update seems to have been completely ignored. However it looks like they are doing well in US and if the train disputes at home are eventually resolved then it looks pretty good going forward.
Would have thought the share price might have gone North rather than a bit South on pretty decent update.
I'm guessing that this drop has been precipitated by the news of the investigation by the Office of Road & Rail??
I would suspect that much as Motorway Service Area operators, the costs for a business like SSP are generally higher than your 'average' high street. Add that to the requirement to open later than may be commercially sensible (in some cases) and the higher prices are not particularly unjustifiable.
Hopefully, the market will see this!
SSP acquires Pret franchise business and expansion rights in Switzerland: SSP Group has extended the reach of its global travel hub portfolio with the acquisition of the franchise rights for Pret A Manger in Switzerland. As part of the deal, SSP will take over operations of three additional Pret stores on top of its existing portfolio in the locations of Löwenstrasse, Rennweg and Zurich's main railway station. The company said the move strengthens its aspirations to further expand the brand in Switzerland. SSP opened its first Pret in Switzerland in summer 2019 and currently operates five stores at Zurich airport, with more openings planned.