SSP Group plc (SSPG) AI Stock Analysis

• Market Cap: £1.26B
• Dividend Yield: 2.22%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 46.0
• Beta (1Y): 1.38
• Revenue Growth: 14.07%
• EPS Growth: 236.27%
• Country: UK
• Employees: 41,673
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Restaurants & Bars
• EPS (TTM): 0.03
• Shares Outstanding: 800,726,200
• 10 Day Avg. Volume: 2,318,541
• 30 Day Avg. Volume: 1,357,386
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.37
• Price to Cash Flow (P/CF): 4.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 240.63p
• Price Target Upside: 52.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

SSP Group plc's overall stock score of 59 reflects a blend of strong financial recovery and positive corporate developments. However, technical indicators suggest bearish momentum and potential overvaluation. Investors should consider the high leverage and focus on net profitability improvements for long-term growth.

Positive Factors

Market Performance

Ongoing momentum outlined at the finals, with +6% LFL sales growth, +5% from contract gains and +5% from acquisitions.

Valuation

SSP's valuation is at a 50% discount to the pre-COVID P/E multiple, suggesting potential for share price growth.

Negative Factors

Earnings

EPS falls -8% / -10% / -10% for FY24E / 25E / 26E mainly due to interest, tax, and minority factors.

SSP Group plc Business Overview & Revenue Model

Company Description

SSP Group PLC operates food and beverage units in travel locations such as airports and railway stations. Units range from coffee shops and sandwich bars to casual and fine-dining restaurants. Its units operate under more than 300 different brand names, including both proprietary brands and franchised brands, such as Starbucks and Burger King. Its segments include the UK, Continental Europe, North America and the Rest of the World.

How the Company Makes Money

SSP Group plc generates revenue primarily through the operation of its food and beverage outlets located in high-traffic travel environments. The company earns money by selling food and beverages to travelers, capitalizing on the steady flow of potential customers in airports, train stations, and service areas. SSP's revenue streams are enhanced by its strategic partnerships with major travel operators and landlords, which allow it to secure prime locations for its outlets. Additionally, the company benefits from operating a mix of proprietary and franchised brands, as well as tailoring its offerings to meet regional tastes and preferences, thereby maximizing customer engagement and sales potential.

SSP Group plc Financial Statement Overview

Summary

SSP Group plc shows a strong recovery trajectory with significant revenue growth and operational efficiency improvements. The company's financials are marked by a high debt-to-equity ratio, requiring careful debt management. Cash flows remain solid, supporting operations and growth. Continued focus on enhancing net profit margins and managing leverage is crucial for sustainable growth.

Income Statement

SSP Group plc shows strong revenue growth with a 14% increase from 2023 to 2024, indicating a robust recovery post-pandemic. The gross profit margin is healthy at 47.12%, and the EBITDA margin improved to 17.70%, reflecting operational efficiency. Net profit margin is modest at 0.80%, with net income rising significantly. However, the company should focus on further improving net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 8.52, indicating significant leverage, which could pose risks if interest rates rise or earnings falter. Return on equity improved to 12.06%, demonstrating effective use of equity to generate profits. The equity ratio is fairly low at 7.16%, suggesting reliance on external financing.

Cash Flow

Operating cash flow is robust, with an impressive ratio of 20.68 when compared to net income, highlighting strong cash generation from operations. Free cash flow increased by 14.04%, supporting reinvestment and debt management. The free cash flow to net income ratio is healthy at 9.83, indicating stable cash conversion.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.21B	3.43B	3.01B	2.19B	834.20M	1.43B
	Gross Profit
992.40M	1.62B	1.25B	606.80M	-101.90M	56.10M
	EBIT
207.30M	205.90M	166.80M	-7.30M	-454.90M	-423.90M
	EBITDA
413.10M	607.50M	496.20M	369.90M	-105.80M	58.00M
	Net Income Common Stockholders
7.60M	27.40M	8.10M	-10.20M	-357.30M	-375.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
166.10M	254.80M	303.30M	543.60M	773.60M	185.00M
	Total Assets
1.63B	3.17B	2.90B	2.83B	3.18B	2.92B
	Total Debt
599.50M	1.94B	1.72B	1.69B	2.25B	2.23B
	Net Debt
433.40M	1.68B	1.42B	1.15B	1.48B	2.04B
	Total Liabilities
1.17B	2.79B	2.58B	2.52B	2.87B	2.72B
	Stockholders Equity
376.30M	227.20M	226.20M	225.00M	240.30M	130.10M
Cash Flow		Free Cash Flow
203.10M	269.40M	236.20M	236.40M	25.00M	-151.20M
	Operating Cash Flow
474.60M	566.50M	478.70M	396.00M	99.60M	-13.60M
	Investing Cash Flow
-369.10M	-413.90M	-264.90M	-150.30M	-69.90M	-161.00M
	Financing Cash Flow
-273.30M	-187.00M	-440.70M	-490.30M	564.10M	131.50M

SSP Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 157.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSPG, the sentiment is Negative. The current price of 157.9 is below the 20-day moving average (MA) of 166.81, below the 50-day MA of 171.28, and below the 200-day MA of 166.09, indicating a bearish trend. The MACD of -4.57 indicates Positive momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 17.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SSPG.

SSP Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPG	72 Outperform	£45.14B	40.68	21.72%	1.80%	6.81%	-14.09%
MAB	66 Neutral	£1.32B	8.88	6.35%	―	4.27%	―
JDW	66 Neutral	£692.19M	14.62	12.18%	2.02%	5.74%	-16.78%
Sector *	59 Neutral	$12.44B	10.63	2.89%	3.66%	1.52%	-17.39%
SSPG	59 Neutral	£1.26B	46.03	12.09%	2.22%	14.07%	236.27%
WINE	48 Neutral	£33.30M	―	-20.11%	―	-15.67%	45.17%

SSP Group plc Corporate Events

SSP Group Announces Total Voting Rights Update

SSP Group plc has announced its total voting rights as of December 31, 2024, with an issued share capital consisting of 800,989,695 ordinary shares, out of which 263,499 are held in treasury. This results in a total of 800,726,196 voting rights, which shareholders and others with notification obligations can use to determine changes in their interest in the company under the FCA’s Disclosure and Transparency Rules.

SSP Group Executives Acquire Shares Under Incentive Plan

SSP Group plc announced that several key executives, including the Deputy Group CEO & CFO, the CEO for UK & Ireland, and the Group Chief Operating Officer, have acquired ordinary shares through the company’s UK Share Incentive Plan. This plan, which is available to all UK employees meeting certain conditions, aims to align the interests of management and employees with those of shareholders, thereby potentially enhancing company performance and stakeholder value.

SSP Group Grants Performance Share Awards to Executives

SSP Group plc announced the granting of Performance Share Awards to key executives under its Long Term Incentive Plan. These awards are based on achieving specific performance targets over a three-year period, aimed at aligning executive incentives with shareholder interests. The awarded shares are subject to a holding period post-vesting, ensuring long-term commitment to the company’s goals.

APG Asset Management Reduces Stake in SSP Group PLC

APG Asset Management N.V., based in Amsterdam, Netherlands, has adjusted its holdings in the UK-based SSP Group PLC, which is a company with a focus on the travel and food services industry. The notification reveals a decrease in APG’s voting rights in SSP Group from 4.8946% to 3.8613%, signaling a disposal of shares and possibly altering the dynamics of shareholder influence within the company.

SSP Group plc Concludes AGM with Resolutions Passed

SSP Group plc successfully concluded its Annual General Meeting on January 28, 2025, where all proposed resolutions were passed by shareholder vote. Key resolutions included approval of the company’s annual accounts, director remuneration, re-election of board members, and authorization for market purchases of shares. The successful passage of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives and operational goals.

SSP Group Bolsters Sales with Strong Q1 Performance

SSP Group reported a strong start to its 2025 financial year, with like-for-like sales up by 6% and overall sales increasing by 14% compared to the previous year. The company’s performance was buoyed by acquisitions and structural growth in the travel industry, particularly in North America and APAC & EEME regions. The company maintained its full-year guidance and highlighted its ongoing focus on enhancing efficiency and driving profitability. SSP Group is also proceeding with the IPO of its joint venture in India, Travel Food Services, with completion expected in the Spring, contingent on market conditions.

SSP Group Announces CFO Transition as Jonathan Davies Retires

SSP Group plc has announced a significant change in its executive leadership as Jonathan Davies, the longstanding Deputy Chief Executive and Chief Financial Officer, plans to retire after 20 years of service. Geert Verellen, with extensive experience in international consumer and food companies, will succeed him as the Chief Financial Officer, joining the Board in June 2025. This transition is expected to ensure continuity and support the company’s strategic goals, including the execution of the planned IPO for its joint venture in India. The leadership change signifies a new chapter for the company, potentially strengthening its financial operations and reinforcing its market position as a global leader in the food travel industry.

SSP Group CEO Executes Share Transaction Under Long Term Incentive Plan

SSP Group plc, a company operating in the food and beverage sector, announced a transaction involving Patrick Murray, CEO of SSP America, under its Long Term Incentive Plan. The transaction included the vesting of a conditional share award and the subsequent sale of a portion of those shares to cover tax liabilities, reflecting typical executive compensation practices.

Ameriprise Financial Acquires 5.534% Stake in SSP Group PLC

The recent announcement from SSP Group PLC details a change in major holdings, with Ameriprise Financial, Inc. acquiring a 5.534% voting rights share in the company as of January 9, 2025. This acquisition marks a significant stake in SSP Group, potentially influencing the company’s decision-making process and strategic direction, given the notable percentage of voting rights now held by a major financial entity.

SSP Group plc Announces Change in Major Shareholdings

SSP Group plc, a UK-based company, has reported a change in major holdings due to an acquisition or disposal of voting rights by APG Asset Management N.V., based in Amsterdam, Netherlands. The voting rights held by APG Asset Management have decreased from 5.621% to 4.8946% as of January 10, 2025, which might impact the company’s shareholder structure and voting dynamics.

SSP Group PLC: Change in Major Holdings

SSP Group PLC, a UK-based issuer, has been notified of a change in major holdings by APG Asset Management N.V., a Dutch firm based in Amsterdam. The notification indicates that as of January 9, 2025, APG Asset Management’s voting rights in SSP Group have decreased from 6.9825% to 5.621%, representing 45,000,000 voting rights.

SSP Group Executives Acquire Shares Under UK SIP

SSP Group plc announced that several key managerial figures, including the Deputy Group CEO & CFO, the CEO of UK & Ireland, and the Group Chief Operating Officer, acquired ordinary shares in the company under the UK Share Incentive Plan (SIP). The transactions, conducted on January 6, 2025, involved the purchase of Partnership Shares and the allocation of Matching Shares, demonstrating a commitment to aligning management interests with shareholder value. This move is significant as it underscores the company’s efforts to incentivize its leadership while adhering to regulatory frameworks, potentially impacting stakeholder confidence positively.

SSP Group Announces Change in Major Shareholder Voting Rights

SSP Group plc, a UK-based company, has announced a change in the holdings of APG Asset Management N.V., which is based in Amsterdam, Netherlands. APG’s voting rights in SSP Group have decreased from 7.8223% to 6.9825%, with the total number of voting rights held now amounting to 55,900,000. This change might influence the company’s shareholder dynamics and could have implications for its market strategies or stakeholder engagements.

SSP Group plc Announces Total Voting Rights

SSP Group plc has announced its total voting rights as of December 31, 2024. The company has an issued share capital of 800,839,695 ordinary shares, with 263,499 held in treasury, resulting in a total of 800,576,196 voting rights. This information is significant for shareholders and other stakeholders with notification obligations under the FCA’s Disclosure and Transparency Rules, as it provides the denominator for calculating changes in their interest in the company.

SSP Group Grants Deferred Share Awards to Executives

SSP Group plc announced the grant of awards under its Deferred Share Bonus Plan to key managerial personnel, reflecting the deferral of their bonuses for the financial year ended 30 September 2024. This move is part of the company’s strategy to align executive interests with long-term shareholder value, with the shares subject to a three-year holding period and scheduled for release in October 2027, thereby potentially impacting the company’s market positioning and stakeholder confidence.

SSP Group Releases 2024 Annual Report, Schedules AGM

SSP Group plc has released its Annual Report and Accounts for the fiscal year ending 30 September 2024 and has distributed these documents to its shareholders. The company has also announced its Annual General Meeting, scheduled for 28 January 2025, where stakeholders can discuss the company’s performance and strategic direction. The availability of these documents on both the National Storage Mechanism and the company’s website signifies transparency and accessibility for stakeholders.

SSP Group’s COO Executes Share Plan Amid Regulatory Compliance

SSP Group plc announced a transaction involving Jeremy Fennell, the Group Chief Operating Officer, who exercised an award under the company’s Restricted Share Plan. He sold a portion of the shares to cover tax liabilities, aligning with Article 19 of the UK version of the EU Market Abuse Regulation. This transaction highlights internal financial activities and compliance with regulatory standards, reflecting the company’s ongoing governance and operational transparency.