FTSE 250 listed SSP Group’s losses widened due to slow recovery in travel


  • SSPG had widened the loss before tax to negative £299.7 million on a reported basis during H1 FY21.
  • The revenue got plunged by 8% at constant currency during H1 FY21.
  • SSPG had cash & undrawn committed facilities of approximately £854 million as of 31 March 2021.

SSP Group PLC (LON: SSPG) is the consumer stock listed on the London stock exchange. SSPG’s shares have generated a return of 20.65% in the last 12 months. SSPG is listed on the FTSE 250 index.

Company Overview

The Company is the operator of food and beverage outlets in travel locations on a global level. Furthermore, it operates bars, restaurants, cafes, and lounges at airports, railway station and motorway service stations.

H1 FY21 Financial Results (for 6 months ended 31 March 2021, as of 09 June 2021)

Slump in Top-Line business – The revenue went down by around 78.8% at constant currency during H1 FY21 due to a material reduction in the number of passengers witnessed across all markets. With regards to the bottom-line profitability, SSPG has widened its operating loss to negative £219.9 million and loss before tax to negative £299.7 million on a reported basis during H1 FY21. 

Marginal Improvements in Trading Momentum – The Company had demonstrated a decent improvement in the trading business since the end of March 2021, particularly driven by the reopening of the UK economy. Moreover, the Company had seen improvement in passenger numbers mainly in North America driven by the successful vaccination programmes. Meanwhile, around 250 outlets have reopened since the end of H1 FY21. Currently, the number of trading outlets stood at 1,150.

Decent Financial position – SSPG had strengthened the financial position after the Rights Issue in April 2021. Moreover, it had extended the banking facilities till January 2024. The net debt stood at £839.6 million (On a pre-IFRS 16 basis) as of 31 March 2021, while it was £692.0 million as of 30 September 2020. On the liquidity front, the Company had cash and undrawn committed facilities of approximately £854 million as of 31 March 2021. The Company had shown a free cash outflow of £140.9 million, an average of £23 million on a monthly basis.

One Year Chart

(Data Source: REFINITIV)

SSPG shares were trading at GBX 315.50 and were up by close to 2.40% as of 09 June 2021 at 02:10 PM GMT. The 14-day RSI stood at ~55.79, while the 20-day simple moving average was around GBX 305.70. SSPG’s 52-week Low and High were GBX 140.97 and GBX 351.86, respectively. The market capitalization of SSPG is approximately £2.45 billion.

Business Outlook

SSPG had anticipated like-for-like revenues to return to pre-Covid levels by 2024. Moreover, it expects around 1,200-1,500 units to be operational by the end of summer 2021. The sales numbers during the first week of June 2021 were 70% down from an equivalent period of 2019. Looking ahead, the Company believe that demand would return to normal levels, and it remained well-positioned to take advantage of new growth opportunities as the market recovers.

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