Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Compass Group PLC    CPG   GB00BD6K4575

COMPASS GROUP PLC

(CPG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

UK caterer Compass' margin outlook buoys shares even as profits crater

11/24/2020 | 05:36am EST

(Reuters) - British caterer Compass said on Tuesday its margins were on track to improve on the back of cost cuts, driving up its shares even as it reported a 76% slump in annual profit due to the impact of the COVID-19 pandemic on its cafeterias.

Compass, which serves workers at Google and Shell as well as schools, old-age homes and the armed forces, said it had taken various measures to "resize" its business and cut costs, including furloughing workers and trimming its workforce.

The company declined to say how many jobs had been lost but said changes made so far would help save around 280 million pounds in annual "in-unit labour costs" - a measure of productivity - and build margins back to above 7%, from the 2.9% for its fiscal year ended Sept. 30.

"Although the prospects of a vaccine are encouraging, the resumption of lockdowns in some of our major markets shows that we have to continue to take proactive actions to control the controllable," Chief Executive Dominic Blakemore said.

Shares in the FTSE 100 company, which have lost a quarter of their value so far this year, were up 5% at 1016 GMT, with analysts citing the margin forecast.

Compass has seen its margins shrink during the pandemic, as the number of students and office workers eating at its cafeterias plunged. It bolstered its finances with a 2 billion pound capital raise in May.

Blakemore told Reuters it was difficult to predict how fast revenues would recover, adding that its first-quarter meals volumes would be similar to that of the fourth.

Compass, which employs around 600,000 people across 45 countries, said its annual pretax profit came in at 427 million pounds ($569.75 million) for the year ended Sept. 30, compared with 1.74 billion pounds last year.

Revenue for the year fell nearly 19% to 20.2 billion pounds.

Compass' French rival Sodexo said last month it planned to lay off 2,083 people as it forecast a further slump in revenue.

($1 = 0.7495 pounds)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips and Pravin Char)

By Yadarisa Shabong


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. -0.19% 1727.62 Delayed Quote.-1.43%
COMPASS GROUP PLC -1.89% 1401 Delayed Quote.2.79%
SODEXO 0.16% 76.94 Real-time Quote.11.15%
All news about COMPASS GROUP PLC
01/142021 - COMPASS GROUP PLC WILL RELEAS : 00am
PU
01/11COMPASS : Supports Inspirational Terra Carta Charter
PU
2020U.S.-based MSP Sports Capital buys into McLaren F1
RE
2020Jefferies Lifts Compass PT, Reiterates Hold Rating
MT
2020COMPASS GROUP PLC : Crossing thresholds
CO
2020COMPASS : Presentation Transcript
PU
2020COMPASS : Q&A Call Transcript
PU
2020COMPASS GROUP PLC : Monthly statement on outstanding equity shares and voting ri..
CO
2020Liberum Keeps Compass Group at Hold, Boosts PT
MT
2020Pandemic Spurs U.K. Companies to Tap London Equity Market at Fastest Pace in ..
DJ
More news
Financials
Sales 2021 19 882 M 27 012 M 27 012 M
Net income 2021 506 M 687 M 687 M
Net Debt 2021 2 545 M 3 457 M 3 457 M
P/E ratio 2021 49,1x
Yield 2021 1,27%
Capitalization 24 990 M 33 969 M 33 951 M
EV / Sales 2021 1,38x
EV / Sales 2022 1,16x
Nbr of Employees 548 143
Free-Float 99,7%
Chart COMPASS GROUP PLC
Duration : Period :
Compass Group PLC Technical Analysis Chart | CPG | GB00BD6K4575 | MarketScreener
Technical analysis trends COMPASS GROUP PLC
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 1 356,57 GBX
Last Close Price 1 401,00 GBX
Spread / Highest target 28,5%
Spread / Average Target -3,17%
Spread / Lowest Target -49,2%
EPS Revisions
Managers and Directors
NameTitle
Dominic Blakemore Chief Executive Officer & Executive Director
Ian Keith Meakins Non-Executive Chairman
Karen Witts Chief Financial Officer & Director
Gary R. Green Executive Director & CEO-North America Region
John George Bason Senior Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
COMPASS GROUP PLC2.79%33 969
STARBUCKS CORPORATION-4.82%120 105
DARDEN RESTAURANTS, INC.1.65%15 780
SODEXO11.15%13 583
JUBILANT FOODWORKS LIMITED-2.08%4 921
JOLLIBEE FOODS CORPORATION-0.56%4 476