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Highlights

  • Goodbody Stockbrokers maintains a “BUY” rating on SSP Group with a 58.87% upside from current levels.

  • H1 FY25 results show strong revenue and profit growth; operating margin up 40bps.

  • Successful India IPO of joint venture TFS boosts expansion prospects in high-growth APAC region.

SSP Group PLC (LSE:SSPG), a global operator of food and beverage outlets in travel locations, continues to attract positive analyst sentiment. Goodbody Stockbrokers has reiterated its “BUY” rating, setting a price target of AUD 5.64 — indicating a significant 58.87% upside from the current market price of AUD 3.55 (converted from GBp 173.1 at an exchange rate of 0.021).

With a current consensus recommendation of 2.31 — firmly in “BUY” territory — SSP Group is showing promise backed by its recent interim results, ambitious international expansion, and recovery across key markets.

Financials Highlight Resilience and Growth

For the half year ended 31 March 2025, SSP reported a 9% increase in revenue (to £1.7 billion) at actual exchange rates and a 12% increase at constant currency. Like-for-like sales growth came in at 5%, driven by continued recovery in travel demand. Operating profit surged 20% to £45 million, while margins expanded by 40 basis points.

Though statutory loss per share stood at 7.7p — largely due to one-off IT transformation costs and impairments in France and Italy — the underlying operating profit under IFRS improved to £68 million. Notably, SSP declared an interim dividend of 1.4p per share.

Net debt stood at £764 million, with leverage at 2.2x. The company expects second-half cash generation to bring leverage back within its medium-term target range of 1.5x–2.0x by year-end.

India IPO Boosts APAC Outlook

A key highlight in SSP’s strategic expansion was the successful IPO of Travel Food Services (TFS), its joint venture with K Hospitality Corp in India. The listing on BSE and NSE on 14 July 2025 marks a major milestone for the group in the fast-growing APAC region.

CEO Patrick Coveney noted, “We believe the market potential in India, combined with TFS' economic model and leadership, provides a compelling opportunity to deliver growth and returns for the Group.”

SSP’s APAC and EEME division reported a 38% sales increase, with 24% of the growth stemming from acquisitions. Although operating margin in this region declined by 210bps to 11.8%, this was largely due to the deconsolidation of the AAHL JV in India, suggesting that the margin impact was anticipated and strategic in nature.

Outlook: Steady Guidance Despite Macroeconomic Noise

SSP has maintained its full-year guidance, targeting revenues of £3.7–3.8 billion and operating profit of £230–260 million. EPS is forecasted in the 11.5–13.5p range on a constant currency basis.

The company also reported 5% like-for-like sales growth in the first six weeks of H2, with significant demand in APAC and the UK offsetting short-term passenger headwinds in North America.