Half Year 2026 SSP Group PLC Earnings Call Transcript
Key Points
- SSP Group PLC (SSPPF) reported a 6% revenue growth to GBP1.8 billion, with an 18% increase in underlying operating profit.
- The company achieved a like-for-like sales growth of 5% in the first half, sustained across both quarters.
- SSP Group PLC (SSPPF) is on track to deliver an increase in operating margin from 2.2% to over 3% for the year.
- The company has implemented a corporate overhead reduction plan, targeting annualized savings of GBP30 million.
- SSP Group PLC (SSPPF) is focusing on cash generation, with a target of over GBP100 million in pre-dividend, pre-buyback free cash flow for the year.
- The Middle East conflict has impacted sales, with Gulf markets trading at approximately 60% of prior-year levels.
- Passenger numbers in key hubs across Asia Pacific and Eastern Europe have contracted, leading to a 4% decline in like-for-like sales in the region.
- The exit from the German motorway services business and the deconsolidation of the joint venture with Adani Airport Holdings in India negatively impacted sales by 1%.
- The company faces challenges in its European Rail business, requiring a significant reset and potential exit from approximately one-third of its units.
- SSP Group PLC (SSPPF) has incurred non-underlying costs related to restructuring and contract renegotiations, impacting financial performance.
Okay. Good morning, everyone, and thank you for joining us here today, either in person or on our live webcast. I'm Patrick Coveney, the Group CEO of SSP, and I'm joined by Geert Verellen, our Group CFO, today.
In a minute, I will briefly summarize the progress that we've made in the first half. Geert will then cover the financials before I return to provide you with more detail on our delivery against Focus '26 and our outlook for the remainder of FY26.
We said in December that we had to do more as a team to strengthen operational performance and to create value for shareholders. We shared our Focus '26 plan to drive sustainable improvements in profitability, cash generation, and returns on capital, structured against the five pillars that you see on this slide. To be clear, there is more that we can and will do, but we're seeing the benefits of that focus coming through in what we would characterize as a resilient first-half performance with tangible progress against each element of the strategy.
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