SSP Group plc

Good morning everybody and thank you for joining us in the room on our live webcast this morning. I'm Patrick Coveney, I'm the Group CEO of SSP and I'm joined by Jonathan Davis, our Deputy CEO and CFO. Before we take you through the detail of our full year performance for FY24, I wanted to start with some reflections on where the business sits today. I've been CEO of SSP for two and a half years now. What's clear to me is both that SSP is a strong business and that we have more to do to reflect that strength in our profitability and returns. While the pace of transition from COVID recovery to a business with demonstrably strong returns has been fast, it hasn't been fast enough. And there are two key reasons for this. First, as we emerged from COVID, we chose to take advantage of the immediate competitive opportunities we had to build a bigger and a better platform for long-term growth and returns. By this, I mean renewing, winning and opening new contracts, and also making for important infill acquisitions. Out of that, we've strengthened our market-leading positions in the most attractive and high-growth food travel markets in the world, and we have lengthened the remaining contract tenure on our estate from four years to six years. At the same time, we've improved our customer propositions, and we've strengthened our client and customer relationships. While the early performance of these investments is encouraging, we have more to do to build out the returns that we require on these investments. Second, the profitability in parts of our continental European region has fallen short of our expectations. While we've done a nice job in retaining and extending almost 40% of our European contract base in the last two years, in addition to mobilizing new business. But the operating disruption caused by this activity, together with a number of additional headwinds during the year, some macroeconomic, some structural, some temporary, and some executional, have negatively impacted profitability in the region. Importantly though, both of these reasons are short term and both of these reasons are fixable. In a moment, I will take you through the specific actions we have in place to improve profitability in continental Europe and to deliver faster returns on the total level of investments we've made across the whole group. Our confidence in delivering these actions is demonstrated in clear earnings per share guidance for FY25 and granular performance expectations for our medium term financial framework. Consistent with these plans, we are proposing today changes to our incentive schemes to better align management targets with shareholder returns. All of this I'll talk about in more detail, but before I hand over to Jonathan to take you through the FY24 financials, I wanted to touch on three things. First, our focus on FY24 operating performance, particularly in half two, has flowed through to cash. We've ended the year with net debt at 593 million and leverage levels at 1.7 times, a little better than our initial expectations. Two, three of our four regions, North America, Asia and the Middle East, and the UK, delivered strong growth and strong operating profit progression, particularly in the second half. And the third area for me to highlight today is our clear agenda for FY25, which you can see on the right-hand side of this slide. This is where our whole team's focus is, and we've got a clear set of actions to deliver on this agenda. I'll come back in a few minutes to this and our focus in FY25 in more detail, but for now, I'm gonna hand over to Jonathan to take you through the FY24 results.

Thank you Patrick and good morning everyone. So we've had a good second half led by strong sales growth and a recovery in operating margin and this left full year sales at 3.4 billion, up 17% year on year on a constant currency basis. Underlying operating profit was up by 32% to £206 million, and the EPS was, as expected, at 10p, up 41% year-on-year, including, as we indicated in October, some one-off benefits in tax and interest. Net debt was down to 593 million at the end of September, so better than our expectations in October. And that left leverage at 1.7 times compared with 2.1 times at the end of the first half, so back within our target range. And we're proposing to pay a full year dividend of three and a half pence a share, representing a payout ratio of 35%. So briefly looking at the results under IFRS 16, operating profit was 247 million for the year, 40 million higher than the pre-IFRS 16 result. The main difference here as ever is that under IFRS accounting, It's the treatment of our leases where the minimum guaranteed rents are capitalized and therefore no longer included in the rent line. The effect is to increase EBITDA by 277 million, but correspondingly increased depreciation by 236 million. And the reported operating profit also includes an exceptional charge of 41 million, principally comprising impairment charges of 33 million. Now turning to our underlying performance. Our overall results were in line with expectations. And if we compare to the planning assumptions that we set out this time last year and which we gave on a constant currency basis, sales were at the top end of the range at 3.5 billion. EBITDA was bang in the middle of the range at 359 million and operating profit at 218 million was just below the midpoint of that range. Now, turning to sales and current trading, Like-for-like sales have remained robust and very steady at around 6% during the second half. And over the first eight weeks of the new financial year, they've remained at a very similar level with like-for-likes running at 5%. And we continue to see good sales growth across all our regions. So firstly, looking at the like-for-likes. Asia and Middle East was the standout performer in the year with Like for Like at 17% and it was still in the mid-teens during the second half. The region benefited from strong passenger growth in a number of markets including India, Egypt, Thailand and Australia. The Like for Like performance in the UK was very encouraging at 11% for the full year and was still running at 9% in the second half. This was driven by good passenger growth in the air sector, particularly over the summer, and the steady recovery in rail passengers helped by the more limited impact of strikes compared to the previous year. In North America, Light for Light was 6% for the year, 5% in the second half, and this was a good performance given that it was against pretty tough comparatives. However, worth noting that passenger numbers were a little softer in the second half in the US, where a number of the major airlines have been operating reduced schedules, largely due to the well-publicized Boeing issues. Like-for-like sales in continental Europe were 6% and that was despite the impacts on our rail business of the strikes and the weaker trading over the Paris Olympics as well as the soft trading in our German motorway service business. Looking at the net gains of 4%, these reflected the further mobilization of the contract pipeline that we've talked about in the past, notably in North America, where this contributed a further 8% to sales growth. We also saw a decent contribution from acquisitions in the year of 4%, principally again from North America at 12%. And this reflected the midfield concessions deal from the previous summer, as well as the two smaller acquisitions in the first half at Atlanta and in Canada. And we also saw a 9% contribution to sales in Asia and the Middle East, which came from the ARE acquisition in Australia in May. Finally, over the first eight weeks of the new financial year, overall sales growth has remained strong at 13%, and that includes the 5% I just referred to earlier in terms of like-for-like sales. So turning to profit, operating profit increased by 32% year-on-year, with group operating margin up 70 basis points. Looking at the regions, we saw a very strong result in North America, with operating profit up 52% and with a 170 basis point improvement in operating margin, which is well ahead of the pre-COVID level. In Asia and the Middle East, profit also grew strongly, up 32%, driven by the strong sales growth I've just covered, as well as, of course, a contribution from the ARE acquisition in the second half. In the UK, we delivered profit growth of 26% year-on-year and a margin enhancement of 70 basis points. Now, this reflected a very much better second half, having seen margin actually down a little in the first half. But, of course, that was largely due to the scale of the renewal programme in the first half. However, against this backdrop, the performance of continental Europe was disappointing, with operating profit down 46% and the margin halving to 1.6%. Now, the macroeconomic backdrop for all of our continental European operations was difficult, with weaker consumer spending, particularly in northern Europe, and passenger numbers in the rail sector still well below pre-COVID levels. And all of this was exacerbated by a number of significant but largely temporary trading challenges. So let me just go through those. Firstly, we saw the intermittent strike action in France and Germany and the impact of the lower volumes during the Paris Olympics, which hit our rail operations and drove up labour costs. Secondly, the sheer scale of the renewal programme, particularly in the Nordic countries, put short-term pressure on the P&L due to the disruption and pre-opening costs that these carried. And thirdly, we continue to see poor trading in our German motorway service business, which of course we will exit over the next 12 months or so. So in the round, we were able to mitigate many of these temporary headwinds through client compensation and, in some cases, the use of government support. But that doesn't take away from the fact that these results were, frankly, below our expectation. Patrick will cover our profit improvement plans for continental Europe in more detail later, as he said. Now, let me turn to the overall group P&L. As I've already said, operating margin was up 70 basis points on a constant currency basis. So if we look down the key lines, gross margin improved by 60 basis points. This was another strong performance, albeit helped by the easing of some of the inflationary pressures we've been seeing in many food commodities. However, once again, I feel this demonstrates our ability to mitigate inflation through pricing action as well as the effectiveness of our programmes to work on menu and range engineering. Labour ratios were 60 basis points better than last year, and that's despite the inflationary pressures on pay rates. However, again, here we were helped by the strength of the like-for-like sales in many regions and the deployment of digital order and payment technology. And finally, concession fees you can see were 70 basis points higher year on year. But this, of course, included the impact of this particularly high level of contract renewals, most notably in the continental European region, as I've described earlier. So if we look further down the P&L. Net profit of around 80 million was driven by the strong second half performance where we delivered net income of 88 million following the small net loss of 8 million in the first half. And this reflects the increasing second half weighting of the business. And this is due to the higher dependence on air and leisure travel. And frankly, we expect the first half, second half split to be very similar as we look into 2025. Interest costs were broadly flat year on year, but in underlying terms they increased slightly due to the higher average level of net debt, this arising from the acquisitions as well as the high level of capex, and higher interest rates. However, these upward pressures were offset by a one-time 6 million gain on money market deposits in India. The tax charge of £35 million represents an ETR of 19.5%, which benefited from the recognition of a deferred tax asset in the US, which of course is a direct consequence of the increasing profitability of our business in the States. And looking forward, we anticipate a return to a more normal ETR of around 22% to 23%. The lower contribution that you can see here from our associates was largely due to startup costs in our new joint venture with Aéroports de Paris, Ex-Team, which commenced operation in early 2024. And just to remind you, this joint venture will ultimately run nearly all of the food and beverage across both of the main Paris airports, ultimately running over 100 outlets. Now, let me give you just a little bit more detail on the minority interest figure, given that we have a number of moving parts within the JV arrangements. So first of all, North America, you can see the minority interest charge rose at a slightly lower level than the overall operating profit in the region, reflecting the relatively stronger year-on-year performance in our airports with lower joint venture shares and the good performance in Canada where we own the business 100%. And this was very much in line with what we actually saw in the first half. In Asia and the Middle East, the minority interest charge was flat because the operating profit growth principally came from the wholly owned businesses, including, of course, a good contribution from the acquisition of ARE in Australia. Now, the Indian numbers do require a little bit of explanation. Firstly, the minority interest increased due to the one-off money market gain that I've just covered. And secondly, TFS, our joint venture, has entered into a new joint venture with Adani Airports, who own, amongst other airports, Mumbai, where they've been both our client and our joint venture partner for several years. So this new joint venture, established last June, specifically for the Mumbai operations, has enabled us to secure a long-term extension of our very successful business in Mumbai, including our lounge business. And looking forward, and importantly, it gives us access to the growing portfolio of airports in the Adani estate. And in fact, we're already running food and beverage outlets in six further Adani-owned airports, as well as Mumbai. Now, under this new structure, our shareholding in Mumbai has reduced from 44% to 25% and therefore will no longer be consolidated. And the effect of this on our 2025 numbers will be to reduce reported sales by something like 40 million and operating profit by 12 million with a corresponding post-tax ratio. reduction of minority interests of around 7 million and an increasing associates line of 2 or 3 million. So that of course should grow over time as we bring new business into this joint venture. Important to say we have put some more detail here in the appendix to this presentation for clarity. But overall we anticipate the net impact on earnings per share being minimal. So now finishing with the cash flow, we've used 233 million of cash in the year, which was after the investment of 280 million in capital projects and a further 139 million on acquisitions. It's worth noting that SSP's share of CAPEX net of contributions from partners in controlled joint ventures and associates was £267 million and again we've included more detail on that in an appendix to these slides. We saw a working capital outflow of 20 million in the year, and that reflects the normal generation of cash with increasing sales and therefore increasing negative working capital. But this was more than offset in the year by the unwind of the remaining deferred payments from the Covid period amounting to around 40 million. Net financing costs were 36 million in the period and this left net debt at 593 million and leverage at 1.7 times as I described earlier. Now looking forward, given the anticipated seasonality of our capex and working capital cycle over the year and therefore the planned usage of cash in the first half, we would expect leverage to be slightly higher than this by the half year before reversing again in the second half and returning towards the lower end of our target range by the end of 2025. And with that, I'm going to pass over to Patrick to take you through the strategic highlights and the outlook.

Thanks, Jonathan. At the start of this meeting, I talked about the work that we have done to strengthen and to expand our business with the objective of delivering great propositions for customers and clients, and also sustainable returns for investors. We compete in structurally growing food travel markets, and we've prioritized building our presence and capability in the higher growth and higher returning geographic air channel markets. while of course defending our existing market positions by renewing and extending as the travel world reopened post COVID. All of this work has created a strong platform, but the benefits of this now need to be better reflected in how we build earnings and cash flows from here. In a moment, I'll take you through our plans to deliver this step up in performance. But before doing this, let me take a moment to explain the why, where and how we've invested over the course of the last two years. About 60% of the 690 million invested has been into the base estate where we've extended our existing contract base. The higher than usual level of contract renewals described previously as catch up is a reflection of the fact that many renewals were put on hold in the aftermath of COVID. It also though includes necessary investments we've made in our store and customer propositions in certain markets, notably the UK. And the final piece of this base investment has been in technology. Cumulatively, this has meant that over the last two years, approximately a third of our total estate and almost 40% of our continental European estate has been renewed and extended. And in doing so, we've lengthened average remaining contract term from four years to six years. The second 40%, though, of our total investment has been allocated to growing the business, winning and mobilising new contracts deliberately weighted to North America, to India, to Asia and the Middle East. Within this expansion investment, we've spent approximately 180 million on acquisitions to build our position and market share in North America and Asia. The integration of these businesses has proceeded in line with our expectations. Each of these new contract and M&A investments has been put through our well-established investment review process with projected returns expected to be in line with our historical returns profile. As I said earlier, much of this 690 million of investment is yet to fully mature. Driving the profitability of this and delivering the expected return on this is a priority for us this year. In addition to growth investment, though, we have fundamentally strengthened our proposition, our customer offers and enhanced our client relationships. And we've made strong progress in each of these areas in FY24. In the year, we've added more than 20 new clients and entered two new geographic markets, Saudi Arabia and New Zealand. We've done this while materially strengthening our propositions to and relationships with customers. Indeed, our customer rating, as measured by our reputation tool now, which is based on monthly feedback from approximately 15,000 different customers, has improved to 4.4 out of five, from 4.2 out of five in FY23, and 3.8 out of five in FY22. And we've also strengthened our sustainability credentials, both in short-term delivery and in the longer term, about which we've added more detail in the appendix to this presentation, and which we will highlight in our third sustainability report, which we're gonna publish later this month. I'll now turn to our four regional divisions and highlight how we are driving growth and returns in each case. Starting with North America. With a strengthening competitive position there, an experienced and highly capable team, and momentum on all fronts in the large and growing North American market, our strategy is to build our market share to more than 20% in the medium term. To date, we've done this organically through like-for-like and new unit growth opportunities, complemented by thoughtful infill M&A. While we're pausing new M&A activity this year, our recent experience of the three acquisitions that we made is very positive, with returns building in line with our plans. We now have a presence in 53 of the top 200 airports in North America, up from 37 two years ago, or at the end of FY22, reflecting a combination of this business development momentum and M&A. This has delivered top line growth in FY24 of 26% at constant currency rates, as well as building operating profit margin, which is at nearly 10% this year. Key to this North American performance has been a concurrent focus on efficiency and productivity while we grow, from menu optimization to drive gross profit, to automated kitchen equipment to reduce staffing needs, to consistent use of technology to drive down costs and waste. North America will continue to be a great growth driver for this group, delivering high revenue growth and sustainable margin growth and returns. Similar to North America, but from a very different starting point, we are planning to more than double the size of SSP in Asia and the Middle East over the medium term. These regions have some of the fastest growing airport infrastructure and food travel markets in the world. And we're investing both to build further scale in our existing geographic footprint and to very selectively enter attractive new markets to secure long-term growth and returns. India in particular is a strategically important market for us. Here we operate with our joint venture partner, TFS. This year, as Jonathan has described, we've combined strong like for like growth with an expansion of our partnerships in India, notably with TFS's new joint venture with Adani Airports. This partnership not only extends the tenure of our highly profitable operations in Mumbai, but also gives us access to six new airports across India. Through TFS though, we are also building industry leading lounge propositions. and we're positioned to capture more regional lounge opportunities outside of India into markets such as Malaysia and Hong Kong, where we have already opened multiple new lounges this year. As a group, we're consistent in focusing our expansion investments in markets where we see the greatest long-term growth and return dynamics. This has meant an expansion of our business into Saudi Arabia this year, as well as a trebling of the size of our Australian business through our acquisition of ARE, and the integration of that into our strong performing original SSP Australia business is going well. Critically, the margin profile of our Asia and Middle Eastern businesses has remained strong as we've continued to expand SSP in the region through FY24. The UK is our heartland. As many of you know, a key priority for me personally has been to improve the performance of our home market in every sense. What I mean by that is both delivering better propositions for customers and clients and improving our financial performance. We set four key priorities. First, resetting the team under the leadership of Carrie Daniels. Second, rebuilding the quality of our customer propositions and store estate across the UK. Third, developing a stronger and more exciting for customer business in the air channel. And fourth, deepening and developing existing and new client relationships with both operators and with brand partners. We've delivered substantial progress on all of these fronts, which is translated into the strong performance that we delivered in FY24, most particularly, as Jonathan said earlier, evident in the second half performance. Our actions to refresh and innovate our own, as well as our franchise brands, is contributing to strong like-for-like sales uplift. Some examples of this include the resetting and rebranding of 21 further formerly SSP pumpkin stores to cafe locals, the continued rollout of premium bar concepts across multiple UK airports, and the refurbishment of a further 18 M&S stores, all of this done in FY24. Allied to this, we've seen a strong uplift in customer satisfaction, customers visiting our stores through reputation, up to 4.6 out of 5 from 4.5 out of 5 last year, and only 3.3 out of 5 in 21. The work we have done on our proposition and concepts has been done in tune with what customers and clients are looking for in food travel. These actions have driven progressively better like-for-like sales, strong retentions, and further net gains. Importantly, the team are also driving now a focused efficiency program, which delivered a good step up in profit and margin in the second half of 24, and we will continue to build on that through 25 and beyond. The work we've done in the UK gives us a strong playbook for further proposition and efficiency development in the UK, but also across the group, starting in continental Europe. Our continental European businesses are an important part of our group. We have a long established presence across the Scandinavian countries, in France, in Germany, in Belgium, in Switzerland, in Austria and Spain, with strong market share positions in all of these markets. As I've made very clear though, our FY24 performance in continental Europe was both disappointing and behind our expectations. We can and will do better here. While parts of the business, notably Spain, traded well, we experienced a combination of headwinds and performance challenges across many of our Northern European markets. On a market-wide level, but most particularly in Germany, a weaker macroeconomic environment compounded by elevated levels of industrial action and labour cost challenges, which ran actually across all of Northern Europe, impacted negatively our business. The slower post-COVID recovery in the rail sector compared to air, which accounts for about a third of our sales in the region, has left passenger levels below pre-COVID levels. Additionally, our regional performance continues to be negatively impacted by our loss-making motorway service station business in Germany, for which we have now contractually agreed a phased exit, completing in 26. We've also delivered, though, a significant number of new unit openings. The scale of the contract renewal programme, predominantly in the Nordics, is unprecedented and resulted in a drag on performance. As ever with mobilisation, we experienced disruption in pre-opening costs, with performance being reflective of the fact that these units are yet to fully mature. However, to be candid, we've had executional issues in the region too. We suffered from this in the summer, where performance in France was behind our expectations during the Paris Olympics. Like many, we planned for a step up in demand through July and August. What we saw actually was the reverse of this. And having increased our staffing levels in advance of the Games, we were unable to take our costs quickly enough. The combination then of these structural, channel mix, renewal timing, and executional factors resulted in an operating profit performance of 18 million this year, compared to 36 million last year. And as I said, we will do better. So what are we doing? We're on with it in recovering European performance. We've changed the leadership model, appointing a new regional CEO, Satya Maynard, who joined us in September, and he is leading and driving the plan, which consists of five elements. First, acting to drive returns from our recent renewals programme weighted towards the Nordic region. We've been forensically assessing individual unit performance, identifying any underperforming units and taking action to address them. Second, simplifying the organisation structure and removing duplication. This has resulted in greater transparency and accountability and is also reducing cost. Third, driving better operational performance, including menu optimization and procurement disciplines, labor productivity through an acceleration of workforce management tools, and lower overhead. Fourth, tightly managing the exit from our German motorway service station business ahead of the final exit in 26. We're closing about half of our 60 units this year, the most loss-making ones, in fact. And we're mitigating the expected in-year losses across the remainder of this state. And finally, driving like for like sales through revised propositions combined with the use of digital to build our top line in the region, especially in the under pressure rail channel. Our confidence in this program means that today we're setting a near term regional operating margin target that builds from the 1.6% that we delivered in FY24 to approximately 3% in FY25 and approximately 5% in the medium term with further progression plans thereafter. Now, turning to the outlook for both the current financial year and into the medium term. Importantly, we're moving to a new phase in FY25, one that builds returns and profitability on the heightened level of recent investment. We've tightened our business agenda to enable this, so let me just highlight a few elements now. we're pushing all of our recently renewed and newly opened units towards maturity and taking action to progress any pockets of underperformance. And as I've just talked through, we have a clear recovery plan in place and underway for continental Europe. On cost efficiency, we've got to focus on optimizing menus, automating kitchens, resetting food supply chains, revisiting franchise fees in certain circumstance, and enhancing labor scheduling across the group. We have tightened our levels of new capital expenditure with a more normalised pace of new business development planned and no anticipated new M&A. This will strengthen operating cash flows and free cash flows in the year. And finally, we're maintaining our core priority of driving sustainable growth through like-for-like enhancements with profitable organic growth and contract extension. Looking specifically then at our planning assumptions for FY25. Importantly, we build our expectations from the bottom up across our regions and functions, taking into account both headwinds and tailwinds as well as all of our planned in-year actions. In FY25, we're planning for group sales at constant currency to be in the region of 3.7 to 3.8 billion, with the growth coming from a 4% to 5% uplift in like-for-like sales, approximately 4% further from net gains and a contribution of 2% to 3% from our recently integrated infill acquisitions. We also expect a drag of approximately 2% from the accounting impact of the new Indian joint venture with the Downey airports and the phased exit from our German motorway service station business. With the actions we're taking to drive profitability and returns, we're planning for a group operating profit margin uplift and an operating profit outcome for the year in the range of 230 to 260 million at constant currency. This year-on-year operating profit change is net of the impact of the new Indian joint venture with Adani Airports. We're also setting out today an EPS planning assumption in the range of 11 to 13p at current rates, a strong year-on-year improvement. This planning assumption factors in all of our actions on operating profit and elements of our technical guidance which are included in the appendix to this presentation. Turning now to our near-term capital allocation priorities, which will focus on the areas that will drive the greatest return while ensuring we maintain an efficient balance sheet, one that has net debt to EBITDA between one and a half and two times. Our priority is capital investment for organic growth, given our ability to deliver high returns on investment. This year we're planning for lower year on year value creating CapEx investment in the region of 230 to 240 million, and we don't anticipate further M&A activity in FY25. Let me say though that we're not stepping away from growth opportunities, but in the short term we're pausing M&A as we focus on delivering value from the elevated level of CapEx and M&A activity in FY24. As Jonathan has already mentioned, we're proposing to pay a full year dividend at a payout ratio of 35% in line with our target range of between 30 and 40%. And furthermore, we expect a material step up in cash flow performance this year and are focused on creating the conditions to return capital to shareholders in the near term while maintaining leverage in our target range. In this set of results, we're introducing return on capital employed as a key performance indicator for the first time. We're doing this to highlight our in-year returns on our capital base. Importantly, the measure we're introducing, which is set out in our results, adjusts both the numerator and the denominator for joint venture and minority interest effects. In other words, it's a true measure of the return on capital for our investors. In FY24, our return on capital employed was 17.7%, rising from 17% in the prior year. We will progressively build our return on capital employed from this starting point, delivered through strengthening annual profit performance, driving higher returns on our recent investments, and anticipating somewhat lower levels of capital intensity going forward. FY25 in a way is a year in which we're going to pause for breath somewhat, build returns on all of our recent investments and address the specific challenges that I've outlined already. But looking to the medium term, we're today updating our financial framework to give more granular guidance on our medium term performance. We expect to achieve annual sales growth of 5% to 7%, comprising like-for-like sales growth of approximately 3%, and net gains of between 2% and 4%, with both skewed towards North America, Asia, and the Middle East. In terms of profitability, we expect to deliver sustainable operating profit margin enhancement of an average of between 20 and 30 basis points per year post FY25, as we benefit from operating leverage, greater use of technology and automation, and our wide-ranging efficiency program. Minority interests are expected to grow in line with the operating profit in the countries with joint venture partnerships. Through the medium term, capital investment should be at somewhat lower levels than recent years, with contract renewal and maintenance capex to be an average of 4% of group sales and expansionary capex driven by net gains. Aligned to this financial framework, we expect to see growth in operating cash flow with enhanced cash conversion. And we will continue to pay an ordinary dividend with a target payout ratio between 30% and 40%. The output then of this framework is twofold. We expect to deliver sustainable double digit earnings per share growth for the medium term and our model targets both deleveraging and significant shareholder return. It's been important to us as an executive team and to our board to more explicitly and directly align executive remuneration to these medium term financial objectives. Recognising that SSP is in a different phase now than it was when we introduced the restricted share plan in 2021, earlier this year we felt it was the right time to reintroduce a performance-based long-term incentive plan. So having consulted already with shareholders, the proposed new scheme will align executive remuneration with earnings per share, return on capital employed and total shareholder return outcomes. So, a very quick summary from me before we wrap up for questions. We've delivered a good FY24 performance, in line with our planning assumptions, and with three of our four regions having performed well, and we have a clear set of actions to recover profitability in continental Europe. Today we've set clear financial expectations for FY25, including at the earnings per share level, and importantly, we've seen a positive start to trading in the new year. Finally, we're updating our medium term financial framework and aligning our remuneration policy with a focus on delivering outcomes aligned to shareholders' expectations. With that, Jonathan and I will take questions now. Greg, we'll start with you there.