SSP Group Stock Jumps 11% as Company Reviews Struggling European Rail Business

Travel food retailer SSP Group saw its shares surge 11.3% in London trading after announcing strong full-year results alongside plans to overhaul its underperforming Continental European rail operations.

The company reported revenues of £3.6 billion for the year ending September 2025, representing 7.8% growth at constant currency. Operating profit rose 12.7% to £223 million, demonstrating solid underlying performance despite challenging market conditions.

However, SSP's Continental European rail division—its largest by revenue at £1.2 billion—has been a weak spot, posting just 2% like-for-like growth. The company has now commissioned turnaround specialists Alvarez & Marsal to conduct a comprehensive review of this business, with results expected before interim results next May.

CEO Patrick Coveney acknowledged the challenges: "We are launching a wide-ranging review of our rail business in Continental Europe," citing slower-than-expected recovery in commuter rail traffic and intensifying food and beverage competition across the network.

The review comes as SSP faces mounting pressure from rivals including Avolta and Lagardère Travel Retail, who are securing major airport and rail contracts across Europe and North America. In response, SSP recently won a key concession at New York's JFK Airport Terminal 5, operating 10 food and beverage units for JetBlue.

Beyond Europe, SSP offered investors a potential sweetener through its Indian joint venture, Travel Food Services, which went public in July. The company currently holds a 50.01% stake and is "considering options to realise value for shareholders" in this high-growth market.

Early trading in the new financial year shows promise, with like-for-like sales up 4% globally in the first eight weeks, including all regions now in positive territory. North American performance has particularly rebounded, running 6% ahead of the prior year.

The strategic pivot reflects broader industry challenges as travel F&B operators adapt to evolving passenger patterns and increased leisure travel demand.