Shares in FTSE 250 travel food operator SSP Group fell on Friday despite the company launching a new £50m share buyback, as investors focused on softer North American trading and a slightly weaker profit outlook.

The owner of Upper Crust reported a resilient fourth quarter, with like-for-like sales rising 4% and full-year earnings remaining on track to meet market expectations.

For the year ended 30 September, SSP expects revenue of around £3.8bn, up 5% year-on-year, while earnings per share are forecast at approximately 14.0p, an increase of about 18%. The group expects operating profit of around £230m, with weaker North American trading over the summer weighing on performance, while free cash flow after interest is expected to reach about £70m.

Alongside the update, the company announced a fresh £50m share buyback programme following the completion of its previous scheme, reflecting confidence in cash generation and a continued reduction in leverage.

CEO Patrick Coveney said: “We have delivered a resilient Q4 trading performance in a challenging environment. Despite the significant impact of the Middle East conflict on passenger volumes in APAC & EEME, the strength and diversification of our portfolio leaves us well-positioned to deliver group earnings per share for the year in line with current market expectations.

"While we expect free cash flow to land modestly below our prior expectation for FY26, we expect to drive a very material year-on-year underlying improvement. Given this, in combination with our leverage returning towards the lower end of our target range, we are pleased to be announcing a £50m share buyback programme today, in line with our capital allocation priorities.”

Trading remained strongest in the UK and Ireland, where fourth-quarter like-for-like sales rose 9%, while Continental Europe delivered growth of 3%. North America recorded growth of 2%, and sales in Asia Pacific and the Middle East increased 1%, with passenger traffic continuing to be affected by the regional conflict.

The company also highlighted improving performance in France and Germany, with Continental European operating margins expected to rise to around 3%, up from 2.2% a year earlier.

SSP shares were trading at around 182p in early afternoon, down approximately 3% from the previous close of 188p.

The group will publish its FY26 full-year results on 8 December.

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