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ORR report out and they have shot themselves in the foot, complaining of prices being 10% higher than elsewhere. 14% of retail sales going in rent to rail network/stations. The average across UK is about 7%. So large % of higher price is being paid to network rail/stations in rent, not being taken by retailers as profit.
If they were to try to force prices down, rents would decline with even less for rail network/stations, and demand for higher subsidies to compensate, or higher rail ticket prices.
Typos corrected:
With the bull run that's currently forming, and is about to get them running legs going imminently, I think we'll observe how the closing of this short will help lift the SP (as this short, and other smaller ones not required to be reported are bound to be open too, has acted to hold SP down slightly up until now).
With the bull run that's currently forming, and with is about to get running legs going imminently, I think we'll observe how the closing of this short will help lift it (as this short, other smaller ones not required to be reported are bound to be open too, has held it down slightly up until now).
There are 796 m shares issued and just under 1 % are shorted. On any given day up to 5m shares trade, In June 7m traded in one day. If all the shorts were closed out over a couple of days I don't think you would even know.
Just spotted GLP made a miniscule reduction in their short position on 6th Dec... Surely the recent great results and the SP boost have got to be hurting their large wallet by now?! - This stock will rocket as their short position gets wound up!
SSPG have consolidated their position worldwide and diversified the risk at the same time. Airports are full of millions of captive punters with money to spend in the outlets.
Going back through £3 and £4 in due course. DYOR.
Well done team SSP. Seems like they are making progress.
You only need to look at the motorway service areas to see the power of brands in foodservice. It's not by chance that these have become almost exclusively branded operations now.
SSP have said for a while that they aim to become expert franchise operators, and were touting their expertise as such at a conference that I attended. Yes, the margins are lower, but the trust in the brands will compensate with higher revenues.
Results out tomorrow, and it'll be interesting to see if they're back above the £2.8bn they were approaching before the catastrophic lockdowns.
Yes, they do franchise various offerings including Starbucks and M & S, Burger King etc. The problem with this model is that you lose so much of the potential margin to the franchisor. They will acknowledge that the haven't been very good at building their own brands and products which is one of the reasons why margins are so low.
The thing with SSP is they don't have to sell top notch locally farmed organic, the customer is captive, waiting for a train or checked in for a flight. Prices are ridiculous for the product but if your hungry or thirsty what's the alternative.
don't they also franchise M&S stores
Completely share your frustrations Slipperman55 on the poor quality ingredients used and low quality products available at many travel hubs... Gloucester Farm Shop Services is the holy grail and the world would be far better place if every single travel hub were to have a food outlet just like it!
I'm not saying that their results wont be an improvement on previous ones. The SP might even increase, so good luck to you. My point is that everything they do, they do badly. Has been every thus. If you are a shareholder I hope they go to 375, but at some point you pay a price for being crap. They made £25m pre-tax last year on £2b turnover. Maybe they can double this, who knows. Not all their products are hopeless. How many baguettes has Upper Crust sold? Lots. I just hate the idea that they are OK being really crap at pretty much everything they do, charge crazy prices and offer, mostly, crap products.
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.