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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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SSP Group - Big margin improvement

July 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SSPG
  • Price:
  • 322p
Shares of airports and railway food services operator SSP have stubbornly gone sideways for 18 months but a post results spike on the back of contract wins and cost initiatives suggests an overdue break-out could be on the way.Those interims showed a 6% rise in sales at constant currency to £897m (like-for-like 3.3%) while a big jump in operating margin of 0.5% to 3.4% powered a 28% increase in profit to £30.9m as CEO Kate Swann’s cost cutting magic starts coming through. Eps rose 43% to 3.0p while net debt was £375m (H1 2015: £381m).Growth was driven by increased passenger numbers and cost cuts in the UK where profits rose an impressive 47% to £26.5m (eye opening operating margin up 2.2% t ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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