SSP surges after revenue and profit growth, launches strategic review of European rail business

(Sharecast News) - Food and beverage outlets operator SSP said on Thursday that both revenue and operating profits had grown in the twelve months ended 30 September as it saw "strong trading" across three of its four regions and launched a strategic review of its rail business in Continental Europe. SSP said revenues were up 8% on a constant currency basis as £3.6bn, with like-for-like sales growing 4% year-on-year, while operating profits increased 13% to £233m at constant currency of £223m at actual exchange rates. Operating profit margins improved by 30 basis points at constant currency to 6.1%. Earnings per share came in at 11.9p, up from 10p a year earlier, with one-off trading headwinds and benefits in operating profits "broadly balanced".

SSP also also said it had achieved a positive free cash flow of £80m, pre-dividend, leading it to propose a dividend of 4.2p per share, reflecting confidence in future cash generation. Looking ahead, SSP stated that it expects to deliver full-year earnings per share at the upper end of its guidance range of 12.9p to 13.9p.

The FTSE 250-listed firm also announced that it has launched a wide‑ranging review of its rail business in Continental Europe, after underperformance in markets including France and Germany. SSP noted that slower passenger recovery, shifting travel patterns towards leisure, increased competition across the rail network and a changing brand portfolio had all combined to limit returns on its investments. The review will assess all potential options for the division, with the board expecting to provide an update by or before its interim results in May 2026.

Chief executive Patrick Coveney 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.

"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."

As of 0845 GMT, SSP shares had rallied 12.76% to 167p.

Reporting by Iain Gilbert at Sharecast.com