SSP swings to profit in first half, backs 2026 goals amid uncertainty

(Alliance News) - SSP Group PLC on Tuesday reported a return to profit in its first half and reaffirmed full-year targets, whilst noting uncertainty in the travel market due to the US-Israeli war on Iran.

The London-based operator of food and beverage outlets in travel locations booked pretax profit of GBP6.6 million for the six months ended March 31, compared with a loss of GBP37.3 million a year prior.

Operating profit jumped to GBP62.6 million from GBP15.1 million, as revenue advanced to GBP1.76 billion from GBP1.66 billion.

Adjusted pretax profit rose to GBP36 million from GBP27 million, while adjusted operating profit ticked up to GBP73.6 million from GBP67.6 million.

Adjusted figures are calculated on a pre-IFRS 16 basis, which SSP said "is consistent with the financial information used to inform business decisions and investment appraisals".

The company has declared an interim dividend of 1.6 pence per share, up from 1.4p the previous year. The interim dividend comprises about one third of the full-year payout.

SSP noted that its GBP100 million buyback programme is currently around 60% complete.

The company's shares rose 2.9% to 158.90p on Tuesday morning in London, having lost 5.0% over the past year.

Looking to financial 2026 as a whole, SSP expects earnings per share to remain within the market consensus range of 13.6p to 14.8p. This compares with a diluted loss per share of 2.0p for the six months ended in March, narrowed from a loss of 7.7p on-year. In financial 2025, the company swung to a loss of 9.3p per share from EPS of 3.4p the previous year.

SSP is targeting free cash flow before dividends and buybacks above GBP100 million in financial 2026, up from GBP80 million the year prior, and is eyeing progress towards its medium-term goal of 20% return on capital employed, versus 18.7% in financial 2025.

The company maintained that passenger numbers in the UK, North America and Europe, comprising about 80% of sales, had "remained largely unaffected by the Middle East conflict to date", though business has taken a hit in Asia Pacific, India, Eastern Europe, the Middle East and South America "due to a drop in connecting flights as well as by lower local traffic".

"Visibility to the resolution of this conflict continues to be limited and we are monitoring developments closely. However, our focus remains on what we can control... While mindful of the uncertainty surrounding the conflict and its likely duration, we are confident that the diversification of our global footprint and the resilience of our operating model will help alleviate any adverse effects on our trading," SSP said.

Chief Executive Patrick Coveney on Tuesday called the first half "a period of resilience and progress for SSP".

"Having concluded the wide-ranging review of our rail business in continental Europe, we are starting to implement our plans. I'm confident these will deliver a smaller, more profitable and more cash generative business in this region over time," Coveney noted.

"Given overall good trading at the start of the second half, we remain confident in our prospects for the remainder of the year."

By Holly Munks, Alliance News reporter

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