SSP Group, the London-listed operator of food and drink outlets in airports and railway stations, expects operating profit of about £230 million for the year to 30 September 2026, which it said was slightly lower than planned because of subdued North American passenger numbers through the summer. The guidance came in a fourth quarter trading update on 9 October, alongside a new share buyback of up to £50 million.

The company expects full-year revenue of about £3.8 billion, up about 5% at constant currency, made up of like-for-like growth of about 4% and net contract gains of about 1%. It expects earnings per share of about 14.0p, up about 18% and in line with market expectations. SSP said the operating profit shortfall should be offset at net income level by lower than planned minority interests, as it works to optimise its joint venture partnership model, particularly in North America. The figures are on an underlying, pre-IFRS 16 basis. Full-year results are due on 8 December 2026, and the update gave no guidance for FY27.

We have delivered a resilient Q4 trading performance in a challenging environment.

Patrick Coveney, chief executive, SSP Group

UK strong, Middle East and North America weaker

Group sales rose 4% at constant currency in the fourth quarter, July to September, with like-for-like sales also up 4%. In the UK and Ireland, like-for-like sales rose 9%, which SSP said was supported by strong summer trading, while total sales rose 5%; net contract losses of 3% reflected scheduled airport redevelopments. North America recorded like-for-like growth of 2% and total growth of 4%, with net gains of 2% coming largely from more restaurants within its existing airport footprint.

Continental Europe sales were stable year on year, with like-for-like growth of 3%, after SSP closed its final MSA unit in Germany in the quarter, completing a staged exit from that business. The company expects its Continental Europe operating margin to rise from 2.2% to about 3% in FY26, which it linked to a multi-year improvement plan.

APAC and EEME, the region in which SSP reports India within Asia Pacific, recorded like-for-like growth of 1% and total growth of 8%. SSP said passenger numbers in the region had contracted since the Middle East conflict began at the end of February. Passenger volumes in the Gulf markets have recovered to 90% of prior year levels, but Gulf like-for-like sales fell 10% in the quarter, and traffic in the surrounding Eastern Mediterranean, Asia Pacific and Indian regions continued to reflect lower local and connecting passenger volumes, the company said. Asia Pacific like-for-like sales were flat and the Eastern Mediterranean rose 5%. SSP did not give a separate figure for India.

Cash and capital

SSP expects free cash flow after interest of about £70 million, with no incremental use of supply chain financing year on year, which it said reflected an improvement of about £140 million to £150 million in underlying cash generation, defined as the increase in free cash flow before the use of supply chain financing. It said free cash flow would land modestly below its prior expectation. Capital investment is expected at about £170 million, partly reflecting projects rescheduled into FY27.

The company said leverage is expected to return towards the lower end of its medium-term target range of 1.5 to 2.0 times. In a separate announcement the same day, SSP said the new buyback follows completion of the previous programme and will run from 12 October 2026 until no later than 12 October 2027 under an arrangement with Panmure Liberum. Any shares bought will be cancelled. The company describes itself as operating more than 3,000 units across 38 countries.

F&B Today’s reading

  • Analysis: a 9% like-for-like rise in the UK and Ireland is a strong summer for travel food, but the 3% net contract losses from airport redevelopments mean fewer trading units in some terminals until works finish. Brand partners and suppliers should expect volume through existing units to carry growth in the near term.
  • Analysis: North America shows how concession profits track passenger flows. Like-for-like growth and added restaurants did not deliver the profit plan once passenger numbers softened, which matters for brands franchised into travel estates on revenue-linked rents.
  • Analysis: SSP groups India with regions it says are still affected by lower connecting passenger volumes. Indian brand partners and airport suppliers should not assume a quick recovery in transit-led sales on the strength of this update.