SSP Group PLC: announces FY-2022 preliminary results

London / UK. (ssp) British SSP Group PLC, a leading operator of food and beverage outlets in travel locations worldwide, announces its financial results for the year ended 30 September 2022. A rapid recovery in passenger demand through the year and disciplined cost management has resulted in SSP delivering a strong set of results. We remain well- positioned to benefit from the continued recovery and further growth of the global travel market over the medium-term.

Financial Overview

  • Revenue of GBP 2,185.4m (2021: GBP 834.2m), up 162.0 percent vs 2021 (back to 78 percent of 2019 level, i.e. pre Covid- 19)
  • Underlying1 Ebitda2 of GBP 142.0m compared to an underlying Ebitda loss of GBP 108.3m in 2021 (both on a pre-IFRS 16 basis3)
  • Operating profit of GBP 91.5m on a reported basis under IFRS 16, including credit for non-underlying items of GBP 59.8m (2021: GBP 309.2m loss on a reported basis under IFRS 16, including credit for non- underlying items of GBP 14.1m). On a pre-IFRS 16 basis3, the underlying operating profit1 was GBP 30.3m (2021: GBP 209.0m loss)
  • Profit before tax of GBP 25.2m on a reported basis under IFRS 16 (2021: GBP 411.2m loss). On a pre-IFRS 16 basis3, the underlying loss1 before tax was GBP 6.7m (2021: GBP 251.0m loss)
  • Basic loss per share of 1.3 pence on a reported basis under IFRS 16 (2021: basic loss per share of 51.3 pence). On a pre-IFRS 16 basis3, underlying basic loss per share1 of 4.5 pence (2021: underlying basic loss per share of 31.9 pence)
  • Free cash inflow of GBP 52.0m (2021: outflow of GBP 58.1m), after GBP 148.9m capital investment, primarily for new unit openings4
  • Net debt of GBP 1,150.7m, which includes lease liabilities of GBP 854.6m. On a pre-IFRS 16 basis3, net debt5 of GBP 296.5m, down from GBP 308.0m at 30 September 2021, leaving leverage at 2.1x Net Debt:Ebitda2
  • Liquidity position strong, with cash and undrawn facilities of GBP 708.2m6 at the end of September 2022

Business Highlights

  • Strong recovery in revenue from 64 percent of 2019 levels in H1 to 90 percent of 2019 levels in H2; further strengthening in the first eight weeks of the new financial year to 104 percent of 2019 levels. The recovery in passenger numbers has been led by strong leisure travel demand over the summer holiday season, which has continued well into the autumn
  • Disciplined approach in re-opening of nearly all our units whilst managing industry wide challenges including low labour availability, inflation and supply chain constraints
  • The recovery in revenue combined with the benefit of operating leverage, our ongoing management of inflationary pressures and a continued focus on operating efficiency has enabled us to deliver GBP 127.3m Ebitda in H2, taking full year Ebitda to GBP 142.0m (both on a pre-IFRS 16 basis)
  • Free cash flow of GBP 82.9m in H2, including a significant working capital inflow as sales recovered, resulting in full year cash generation of GBP 52.0m
  • A strengthened balance sheet position with Net Debt of GBP 296.5m and leverage (Net Debt:Ebitda) of 2.1x; significant available liquidity of over GBP 700m
  • High level of contract retention maintained, underpinned by the strength of our operational performance, client relationships and brand portfolio
  • New business pipeline continues to be mobilised at pace, with the opening programme expected to accelerate into the current financial year, increasing capital expenditure to cGBP 250m in 2023
  • Further new business won in H2, increasing the expected annual sales value of net gains since 2019 to c.GBP 550m, once fully mobilised by 2025
  • A clear growth strategy to further strengthen our market-leading positions in food travel markets globally, based on our key priorities: the delivery of leading customer propositions, a focus on skilled and engaged colleagues, and driving growth and returns through our proven economic model. These are underpinned by embedding sustainability throughout the business
  • Well-placed to succeed in a challenging macroeconomic environment due to traveller resilience, our geographic diversification, flexible cost base, strong balance sheet and available liquidity
For additional information please read the company’s PDF file below (201 KB).

20230109-SSP-GROUP-FY-2022
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