DAVY VIEW

Our existing forecasts indicate free cash flow of c.£110m in FY27 and c.£130m in FY28. This cashflow and manageable leverage support further shareholder returns. Indian free float requirements dictate that SSP will likely reduce its ownership in Travel Food Services (TFS). We see an initial reduction in this holding as relatively neutral to EPS. More importantly, SSP’s balance sheet post reduction will be in a stronger position, with cash proceeds coming in and consolidated notional cash flowing out. A cash inflow from TFS would underpin a multi-year buyback programme.