tiprankstipranks
Trending News
More News >
SSP Group PLC (GB:SSPG)
LSE:SSPG

SSP Group plc (SSPG) AI Stock Analysis

Compare
81 Followers

Top Page

GB

SSP Group plc

(LSE:SSPG)

Rating:74Outperform
Price Target:
186.00p
▲(10.45%Upside)
SSP Group plc is well-positioned with strong financial performance and positive corporate events, suggesting confidence in governance and future prospects. However, high leverage and an overvalued P/E ratio present risks. Technical indicators show stability but limited short-term momentum, balancing the overall stock score.
Positive Factors
Cost Management
An overhead cost savings programme has been launched to strengthen the financial performance.
Joint Venture
The joint venture in India seeking an Indian Stock Exchange listing is seen as a potential valuation catalyst.
Sales Performance
Strong LFL sales in APAC / EEME / UK regions are offsetting reduced North America passenger numbers.
Negative Factors
Earnings Per Share
Commentary suggests that EPS downgrades have now reached their lowest point, indicating a challenging earnings environment.
Macroeconomic Uncertainty
Greater macro uncertainty has been flagged, adding potential risks to the financial outlook.

SSP Group plc (SSPG) vs. iShares MSCI United Kingdom ETF (EWC)

SSP Group plc Business Overview & Revenue Model

Company DescriptionSSP Group plc operates food and beverage outlets. The company operates outlets at airports, railway stations, motorway service areas, hospitals, and shopping centers. It operates approximately 550 brands in 36 countries in the United Kingdom, Europe, North America, and internationally. SSP Group plc was incorporated in 2006 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySSP Group plc generates revenue through the operation of food and beverage outlets in travel locations, primarily airports and railway stations. The company earns money by providing dining services under a variety of brand names, which include both proprietary brands and licensed franchises. Key revenue streams include sales of food and beverages to travelers, as well as income from franchise agreements. Significant factors contributing to SSP Group's earnings include strategic partnerships with global brand operators, location contracts with travel hubs, and the ability to adapt offerings to local tastes and preferences.

SSP Group plc Financial Statement Overview

Summary
SSP Group plc shows strong financial performance with significant revenue growth and improved operational efficiency. However, high leverage poses a risk, necessitating cautious debt management. The focus should be on enhancing net profit margins and managing leverage for sustainable growth.
Income Statement
85
Very Positive
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
77
Positive
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
82
Very Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue3.43B3.01B2.19B834.20M1.43B
Gross Profit1.62B1.25B606.80M-101.90M56.10M
EBITDA607.50M496.20M369.90M-105.80M58.00M
Net Income27.40M8.10M-10.20M-357.30M-375.00M
Balance Sheet
Total Assets3.17B2.90B2.83B3.18B2.92B
Cash, Cash Equivalents and Short-Term Investments254.80M303.30M543.60M773.60M185.00M
Total Debt1.94B1.72B1.69B2.25B2.23B
Total Liabilities2.79B2.58B2.52B2.87B2.72B
Stockholders Equity227.20M226.20M225.00M240.30M130.10M
Cash Flow
Free Cash Flow269.40M236.20M236.40M25.00M-151.20M
Operating Cash Flow566.50M478.70M396.00M99.60M-13.60M
Investing Cash Flow-413.90M-264.90M-150.30M-69.90M-161.00M
Financing Cash Flow-187.00M-440.70M-490.30M564.10M131.50M

SSP Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price168.40
Price Trends
50DMA
158.76
Positive
100DMA
160.32
Positive
200DMA
162.39
Positive
Market Momentum
MACD
1.36
Positive
RSI
58.19
Neutral
STOCH
76.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSPG, the sentiment is Positive. The current price of 168.4 is above the 20-day moving average (MA) of 164.55, above the 50-day MA of 158.76, and above the 200-day MA of 162.39, indicating a bullish trend. The MACD of 1.36 indicates Positive momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SSPG.

SSP Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBMAB
75
Outperform
£1.68B10.046.90%1.95%275.56%
74
Outperform
£1.35B49.1512.09%2.48%14.07%236.27%
74
Outperform
£323.92M12.426.45%2.51%2.22%98.79%
73
Outperform
£260.33M5.9610.69%0.50%
72
Outperform
£514.95M61.031.27%1.79%16.73%-55.22%
GBJDW
67
Neutral
£806.61M14.3716.38%0.39%3.70%57.10%
62
Neutral
$16.34B11.01-5.97%3.14%1.65%-24.92%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSPG
SSP Group plc
168.40
20.08
13.54%
GB:FSTA
Fuller Smith & Turner
592.00
-77.24
-11.54%
GB:MARS
Marston's
41.75
10.85
35.11%
GB:MAB
Mitchells & Butlers
284.00
-4.00
-1.39%
GB:JDW
J D Wetherspoon
760.00
41.44
5.77%
GB:YNGA
Young & Co'S Brewery
936.00
-10.01
-1.06%

SSP Group plc Corporate Events

Business Operations and Strategy
SSP Group Enhances Managerial Stake with Share Incentive Plan
Positive
Jun 9, 2025

SSP Group plc announced that key managerial personnel have acquired ordinary shares under the company’s UK Share Incentive Plan. This move, involving the purchase and allocation of shares, reflects the company’s ongoing efforts to align employee interests with corporate performance, potentially enhancing stakeholder confidence in its governance practices.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £240.00 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

Executive/Board Changes
SSP Group Grants Performance Share Award to New CFO Designate
Neutral
May 23, 2025

SSP Group plc announced the grant of a Performance Share Award to Geert Verellen, the newly appointed CFO Designate, as part of the company’s Long Term Incentive Plan. The award, which is contingent on meeting specific performance targets over a three-year period, reflects the company’s commitment to aligning managerial incentives with shareholder interests, potentially impacting the company’s operational focus and stakeholder value.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £2.10 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
SSP Group Reports Strong Half-Year Results and Maintains Full-Year Guidance
Positive
May 20, 2025

SSP Group plc reported its half-year financial results, showing a 9% increase in revenue to £1.7 billion and a 20% rise in operating profit to £45 million. Despite a statutory loss per share of 7.7p due to non-cash IT transformation costs and impairments, the company maintained its full-year guidance, highlighting strong sales growth in regions like APAC & EEME. The company is implementing a cost reduction program and capital expenditure tightening to enhance profitability and cash generation, with plans for a potential share buyback program later in the year.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £240.00 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

Business Operations and Strategy
SSP Group plc Announces Managerial Share Acquisitions Under UK SIP
Positive
May 15, 2025

SSP Group plc announced that several of its managerial personnel acquired shares under the company’s UK Share Incentive Plan (UK SIP). This plan, which is available to all UK employees meeting certain conditions, allows participants to purchase shares and receive matching shares at no cost. The transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to employee investment and engagement, potentially enhancing stakeholder confidence in the company’s governance and employee alignment with corporate goals.

The most recent analyst rating on (GB:SSPG) stock is a Hold with a £240.00 price target. To see the full list of analyst forecasts on SSP Group plc stock, see the GB:SSPG Stock Forecast page.

Business Operations and Strategy
SSP Group Announces Change in Major Holdings
Neutral
Apr 30, 2025

SSP Group plc has announced a change in the nature of its major holdings, with HSBC Holdings plc now holding a slightly reduced percentage of voting rights in the company. The total voting rights held by HSBC have decreased from 9.205% to 9.092%, reflecting a minor adjustment in their investment position. This change in holdings could have implications for SSP Group’s shareholder dynamics and may influence future decision-making processes within the company.

Executive/Board Changes
SSP Group CEO Engages in Share Transaction Under LTIP
Neutral
Apr 15, 2025

SSP Group plc announced a transaction involving its Group CEO, Patrick Coveney, who acquired shares under the company’s Long Term Incentive Plan (LTIP) and subsequently sold a portion to cover tax liabilities. This transaction reflects the company’s ongoing commitment to aligning executive compensation with long-term performance, potentially impacting stakeholder perceptions and reinforcing the CEO’s vested interest in the company’s success.

Business Operations and StrategyRegulatory Filings and Compliance
SSP Group Executives Acquire Shares Under UK Incentive Plan
Neutral
Apr 8, 2025

SSP Group plc has announced that several of its managerial personnel have acquired ordinary shares under the company’s UK Share Incentive Plan (UK SIP). The transactions, which involved both the purchase of Partnership Shares and the allocation of Matching Shares, were conducted at a price of £1.3919 per share for the Partnership Shares, with the Matching Shares awarded at no cost. This move is part of the company’s broader strategy to align managerial interests with shareholders and enhance employee engagement through share ownership. The transactions were conducted on the London Stock Exchange and are in compliance with the UK Market Abuse Regulation.

Executive/Board Changes
SSP Group CEO Asia Pacific Exercises Share Award
Neutral
Apr 7, 2025

SSP Group plc announced a transaction involving Jonathan Robinson, CEO Asia Pacific, who exercised a Restricted Share Award under the company’s Long Term Incentive Plan. This transaction, involving 37,187 ordinary shares at a price of £1.4748 each, was conducted on the London Stock Exchange and reflects the company’s ongoing commitment to rewarding its management team, potentially impacting its market perception and stakeholder confidence.

Business Operations and Strategy
SSP Group PLC Announces Transfer of Investment Management Activities
Neutral
Apr 1, 2025

SSP Group PLC, a UK-based company, announced a significant change in its investment management activities. Parvus Asset Management Europe Limited has transferred its entire investment management operations to Parvus Asset Management Jersey Limited, effective March 31, 2025. This transfer results in Parvus Asset Management Jersey Limited holding 10.669237% of voting rights in SSP Group PLC, marking a notable shift in the company’s shareholder structure. This change is expected to impact the company’s operations and stakeholder dynamics, as Parvus Asset Management Jersey Limited now has the authority to vote on behalf of various funds and managed accounts.

Business Operations and Strategy
SSP Group Announces Transfer of Investment Management Activities
Neutral
Apr 1, 2025

SSP Group plc announced a change in the management of its investment activities, with Parvus Asset Management Europe Limited transferring its entire investment management activity to Parvus Asset Management Jersey Limited as of March 31, 2025. This transfer indicates a strategic shift in the management of SSP Group’s investment operations, potentially impacting its financial strategies and stakeholder relations.

Business Operations and Strategy
Parvus Asset Management Increases Stake in SSP Group PLC
Neutral
Mar 31, 2025

SSP Group PLC, a UK-based company, has announced a significant change in its shareholder structure. Parvus Asset Management Europe Limited has increased its voting rights in SSP Group to 10.23% from a previous 5.19%, following the acquisition of financial instruments. This change in holdings could potentially impact SSP Group’s strategic decisions and influence its market positioning, as Parvus Asset Management now holds a substantial influence over the company’s voting rights.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 10, 2025