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SSP Group PLC (GB:SSPG)
LSE:SSPG

SSP Group plc (SSPG) AI Stock Analysis

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SSP Group plc

(LSE:SSPG)

59Neutral
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
The continuation of trading momentum into the current financial year offers reassurance despite a weak year-to-date.
Sales Growth
SSP's 1Qs highlight the 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 Per Share
EPS falls -8% / -10% / -10% for FY24E / 25E / 26E mainly due to interest, tax, and minority factors.
Earnings Per Share Forecast
A positive inflection in forecast EPS trajectory is likely required to drive the share price.

SSP Group plc (SSPG) vs. S&P 500 (SPY)

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 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
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.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
3.21B3.43B3.01B2.19B834.20M1.43B
Gross Profit
992.40M1.62B1.25B606.80M-101.90M56.10M
EBIT
207.30M205.90M166.80M-7.30M-454.90M-423.90M
EBITDA
413.10M607.50M496.20M369.90M-105.80M58.00M
Net Income Common Stockholders
7.60M27.40M8.10M-10.20M-357.30M-375.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
166.10M254.80M303.30M543.60M773.60M185.00M
Total Assets
1.63B3.17B2.90B2.83B3.18B2.92B
Total Debt
599.50M1.94B1.72B1.69B2.25B2.23B
Net Debt
433.40M1.68B1.42B1.15B1.48B2.04B
Total Liabilities
1.17B2.79B2.58B2.52B2.87B2.72B
Stockholders Equity
376.30M227.20M226.20M225.00M240.30M130.10M
Cash FlowFree Cash Flow
203.10M269.40M236.20M236.40M25.00M-151.20M
Operating Cash Flow
474.60M566.50M478.70M396.00M99.60M-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-490.30M564.10M131.50M

SSP Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price138.70
Price Trends
50DMA
162.34
Negative
100DMA
167.32
Negative
200DMA
165.42
Negative
Market Momentum
MACD
-4.33
Negative
RSI
37.69
Neutral
STOCH
25.02
Neutral
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 138.7 is below the 20-day moving average (MA) of 149.97, below the 50-day MA of 162.34, and below the 200-day MA of 165.42, indicating a bearish trend. The MACD of -4.33 indicates Negative momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 25.02 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCPG
74
Outperform
£42.09B38.1721.72%1.92%6.81%-14.09%
GBMAB
66
Neutral
£1.35B9.276.35%4.27%
GBJDW
64
Neutral
£613.21M10.5816.38%2.09%3.70%57.10%
60
Neutral
£57.42M-20.11%-15.67%45.17%
59
Neutral
£1.12B40.9912.09%2.49%14.07%236.27%
59
Neutral
$11.38B10.18-0.84%4.04%1.25%-16.04%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSPG
SSP Group plc
138.70
-63.19
-31.30%
GB:CPG
Compass
2,494.00
361.53
16.95%
GB:WINE
Naked Wines plc
76.00
17.50
29.91%
GB:MAB
Mitchells & Butlers
232.50
-0.50
-0.21%
GB:JDW
J D Wetherspoon
582.00
-147.38
-20.21%

SSP Group plc Corporate Events

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.

Spark’s Take on GB:SSPG Stock

According to Spark, TipRanks’ AI Analyst, GB:SSPG is a Neutral.

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.

To see Spark’s full report on GB:SSPG stock, click here.

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.

Spark’s Take on GB:SSPG Stock

According to Spark, TipRanks’ AI Analyst, GB:SSPG is a Neutral.

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.

To see Spark’s full report on GB:SSPG stock, click here.

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.

Regulatory Filings and Compliance
SSP Group Announces Total Voting Rights Update
Neutral
Mar 3, 2025

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.

Business Operations and Strategy
SSP Group Executives Acquire Shares Under Incentive Plan
Neutral
Feb 6, 2025

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.

Executive/Board Changes
SSP Group Grants Performance Share Awards to Executives
Neutral
Jan 30, 2025

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.

Other
APG Asset Management Reduces Stake in SSP Group PLC
Neutral
Jan 30, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
SSP Group plc Concludes AGM with Resolutions Passed
Positive
Jan 28, 2025

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.

Business Operations and StrategyFinancial Disclosures
SSP Group Bolsters Sales with Strong Q1 Performance
Positive
Jan 28, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
SSP Group Announces CFO Transition as Jonathan Davies Retires
Positive
Jan 23, 2025

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.

Executive/Board Changes
SSP Group CEO Executes Share Transaction Under Long Term Incentive Plan
Neutral
Jan 20, 2025

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
Jan 14, 2025

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
Jan 13, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.