SSP forecasts operating profit of about £230 million, slightly below plan

The travel food operator said annual profit would come in a little below its plan. It still expects revenue of about £3.8 billion and earnings per share of roughly 14 pence.

In an October 9 trading update, the company linked pressure on results to lower passenger numbers in APAC and EEME since the Middle East conflict began at the end of February. SSP operates food outlets at airports, railway stations and other travel hubs.

For the financial year ended September 30, the group expects operating profit of about £230 million, slightly below plan. Its earnings-per-share forecast is around 14 pence, up 18% from a year earlier and in line with market expectations. Revenue is expected to reach about £3.8 billion, a 5% increase.

Like-for-like sales rose 4% in the fourth quarter. By region, the measure was up 9% in the UK and Ireland, 3% in continental Europe, 2% in North America and 1% in APAC and EEME. SSP said Gulf passenger volumes had recovered to 90% of the prior-year level, while lower local and connecting passenger numbers continued to affect nearby regions and Asia.

The company expects post-interest free cash flow of about £70 million, modestly below its previous forecast but £140 million to £150 million higher year on year on an underlying basis. It also announced a new share buyback programme of up to £50 million.