SSP Group plc (LSE:SSPG), which operates Upper Crust outlets and other food chains at airports and train stations, reported full-year results in line with its recent update and raised its outlook for the coming year.
The food service group's shares rose 3.6% to 220.6p, having sunk to near three-year lows below 180p on the back of a mixed October update.
Today's results confirmed that underlying profit (EBITDA) doubled to £280 million as promised and statutory profit before tax more than tripled to £88 million on revenue up 38% to £3.01 billion in the year to 30 September 2023.
Underlying EPS was 7.1p, compared with a loss of 4.5p per share in the prior year, and net debt was unchanged since the half year at £392 million, with a dividend of 2.5p per share declared, versus City expectations of 2.6p.
The first quarter of the new year has started well, with sales since the start of October up 22% at constant currency rates, with North America up 33%, continental Europe up 14%, UK up 22% and other regions rising 29%.
For 2024, management issued new guidance for revenue of £3.4-3.5 billion, up from £3.2-3.4 billion previously, based on like-for-like sales growth of 6-10%, net contract gains of around 5% and M&A around 2%.
EBITDA guidance is for £345-375 million, tightened up by £10 million at the mid-point.