Davy Morning Equity Briefing
Sep 29, 2026
AG Barr
H1-27 results: on track to meet full year expectations
AG Barr exited H1-27 carrying strong momentum into the back half, with supply constraints now fully resolved and availability expected to normalise through H2-27. Management remains on track to deliver a FY27 outcome in line with market expectations, including c.10% revenue growth (M&A and pricing driven) and a c.15% adjusted operating profit margin. At first look, we expect limited changes to our forecasts.
Flutter Entertainment plc
Outlines potential impact from Brazil executive measure
Flutter Entertainment issued an update yesterday (September 28th) outlining that it has ceased operations in Brazil following the provisional executive measure. It notes that it is assessing all its options, including an appeal. Similar to Entain yesterday morning, it notes that the measure will need approval or amendment by Congress within 120 days. If Congress rejects this measure, it expects to recommence sports betting and iGaming. As we outlined yesterday, this is a frustrating update for the sector. The operating environment in Brazil was already challenging post regulation, and this has compounded the issue. It is also disappointing in the context of Brazil as a potentially longer-term growth opportunity. It is, however, a very small financial impact for Flutter on current forecasts.
SSP Group plc
TFS: potential to compound TSR
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.
