Proactiveinvestors United Kingdom Compass Group https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Compass Group RSS feed en Sun, 16 Jun 2019 03:29:14 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Compass Group adds Swedish chefs to its roster with €475mln Fazer buy ]]> https://www.proactiveinvestors.co.uk/companies/news/221857/compass-group-adds-swedish-chefs-to-its-roster-with-475mln-fazer-buy-221857.html Catering giant Compass Group PLC (LON:CPG) is acquiring Nordic food specialist Fazer Group for cash and debt of approximately €475mln.

Fazer supplies more than 1,000 restaurants across Scandinavia  and Finland, serving 500,000 meals a day on average with annual turnover of €593mln. The consideration will be €420mln in cash payable upfront and a deferred amount over seven years.

READ: RBC downgrades Compass as future direction becomes less clear

Dominic Blakemore, Compass‘ chief executive, said: "Fazer Food Services is a highly regarded food service business in the Nordic region, and like Compass, is focused on high-quality food, culinary innovation, sustainability and great customer service.”

In a note to clients, analysts at UBS commented: “Our first impression is that the acquisition of Fazer Food Services is a positive for the Compass investment case although benefits likely seen from 2020.”

The Swiss bank repeated a ‘buy’ rating and 1,910p price target on Compass shares which in afternoon trading were 0.8% lower at 1,843.50p.

 -- Adds analyst comment, share price --

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Tue, 11 Jun 2019 08:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221857/compass-group-adds-swedish-chefs-to-its-roster-with-475mln-fazer-buy-221857.html
<![CDATA[RNS press release - Compass Group PLC to acquire Fazer Food Services ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190611070009_14105697/ Tue, 11 Jun 2019 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190611070009_14105697/ <![CDATA[News - RBC downgrades Compass as future direction becomes less clear ]]> https://www.proactiveinvestors.co.uk/companies/news/221721/rbc-downgrades-compass-as-future-direction-becomes-less-clear-221721.html Shares in catering giant Compass Group PLC (LON:CPG) are not worth buying at the moment, analysts at RBC Capital Markets told clients on Friday as it downgraded its rating to 'sector perform' from 'outperform'.

The FTSE 100-listed group is still, the RBC analysts believe, “an excellent, focused and defensive business, with above-average growth and strong competitive positions”, as well as being one of the “quality, international, defensive” stocks that are in vogue at the moment.

READ: Compass points upwards as it upgrades full year growth forecasts following tasty first half

However, while there are operational and sector positives for Compass, RBC expects a slightly slower second half from the company and said margin progression was tough and key competitors could sort out their troubles and become more competitive over time.

Longer term, RBC sees possible risks from working at home and automation trends, potential for slower outsourcing growth and increasing food delivery options.

RBC upped its share price target for Compass to 1,800p from 1,750p as it nudged up forecasts on the back of strong current trading but cut its recommendation as the shares have outperformed the FTSE 100 index by 20% over the past 12 months.

“After the strong run and the stock at all-time relative highs, we no longer see enough upside in the shares to be positive,” the RBC analysts said.

Compass shares are among the more expensive in the outsourcing sector, it was noted, though they trade broadly in line with the other defensive stocks in line with RBC’s long-term valuation.

The analysts said they are negative on a number of the defensive names such as Intertek Group PLC (LON:ITRK) and Bunzl PLC (LON:BNZL) and their preferred sector plays are “now more skewed to the cyclical and value end of the sector”, such as DCC PLC (LON:DCC).

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Fri, 07 Jun 2019 09:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221721/rbc-downgrades-compass-as-future-direction-becomes-less-clear-221721.html
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190603160003_14096705/ Mon, 03 Jun 2019 16:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190603160003_14096705/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190603070005_14095068/ Mon, 03 Jun 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190603070005_14095068/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190530154502_14092949/ Thu, 30 May 2019 15:45:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190530154502_14092949/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190516130001_14077061/ Thu, 16 May 2019 13:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190516130001_14077061/ <![CDATA[News - Compass points upwards as it upgrades full year growth forecasts following tasty first half ]]> https://www.proactiveinvestors.co.uk/companies/news/220303/compass-points-upwards-as-it-upgrades-full-year-growth-forecasts-following-tasty-first-half-220303.html Compass Group PLC (LON:CPG) shares turned upwards on Wednesday after the contract caterer raised its growth forecasts for the full year on the back of a tasty set of first half figures.

The group’s chief executive, Dominic Blakemore, said that following a “very strong first half” the FTSE 100-listed company had increased its growth guidance for 2019 and now expected organic revenue growth and margins “similar to 2018” when it reported organic revenue growth of 5.5% and operating margins of 7.4%.

READ: Compass heads south as Barclays downgrades for first time in a decade

The bullish outlook came with the firm’s results for the six months ended 31 March, which showed underlying operating profit rise by 5.8% to £951mln while revenues jumped 6.6% to £12.5bn.

That revenue growth was slightly above consensus forecasts, which had predicted organic revenue growth of 6.2%.

The performance was boosted by “excellent growth” from the firm’s North American division of 7.9% as well as 5.5% growth in Europe driven by its UK Defence arm which provides catering for the British armed forces.

Compass also reported 3.2% sales growth in the rest of the world, with a “continuing good performance” in developing markets.

As a result of the improved performance, the company hiked its interim dividend by 6.5% to 13.1p per share.

Looking further ahead, CEO Blakemore said the firm remained “excited” about “significant structural growth opportunities globally”.

Investors reacted positively to the strong numbers, with the shares jumping 3.4% to 1,787p in early morning deals.

Analyst hails “brilliantly boring business”

Commenting on the results, Nicholas Hyett, equity analyst at Hargreaves Lansdown, said while Compass was “a brilliantly boring business”, the group’s “steady mid-single digit revenue growth” converted well into profit and cash because facilities were usually provided by its customers, keeping capital requirements low.

Hyatt noted that the company’s steady growth and a “tight grip” on margins had allowed the company to grow its dividend every year since 2001.

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Wed, 15 May 2019 09:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220303/compass-points-upwards-as-it-upgrades-full-year-growth-forecasts-following-tasty-first-half-220303.html
<![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190515070008_14074048/ Wed, 15 May 2019 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190515070008_14074048/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190501070003_14058356/ Wed, 01 May 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190501070003_14058356/ <![CDATA[News - Compass heads south as Barclays downgrades for first time in a decade ]]> https://www.proactiveinvestors.co.uk/companies/news/218588/compass-heads-south-as-barclays-downgrades-for-first-time-in-a-decade-218588.html Compass Group PLC (LON:CPG) shares dropped in late-afternoon after Barclays downgraded the group to ‘equal weight’ from ‘overweight’ for the first time in a decade.

The investment bank said the valuation of the FTSE 100 caterer had now reached levels that made “upside feel more limited” and that they were now more cautious in the medium-term.

READ: Compass Group ups full-year growth expectations as contract caterer reports "excellent" start to the year

The company's shares have had a strong run over the last six months, rising around 15% after a cost-cutting drive helped offset lower volumes, flat margins, and higher costs at its UK business in the latest full year.

“While we expect another excellent quarter of organic growth when the company reports on 15th May … we are more negative about margins, even if management has already flagged it expects a softer [first half],” the bank said.

Barclays added that one of the key bearish points for caterers was rising capital expenditure and a view that the industry was “becoming more capital intensive” with a deterioration in the return on capital employed (ROCE), the measure of how efficiently a company generates profits from its capital.

Analysts said while they didn’t see this derailing the company for the next 1-2 years, the trend was “concerning”, particularly given free cash flow yields (i.e. the amount of return a shareholder earns on their investment) was at an all-time low of 3.6%.

Shares were down 1.4% at 1,768.5p.

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Mon, 15 Apr 2019 11:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218588/compass-heads-south-as-barclays-downgrades-for-first-time-in-a-decade-218588.html
<![CDATA[RNS press release - Block listing Interim Review ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190401100001_14023252/ Mon, 01 Apr 2019 10:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190401100001_14023252/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190401070005_14022435/ Mon, 01 Apr 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190401070005_14022435/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190326161502_14016621/ Tue, 26 Mar 2019 16:15:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190326161502_14016621/ <![CDATA[RNS press release - CG Finance Netherlands BV Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190307070004_13993093/ Thu, 07 Mar 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190307070004_13993093/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190301070003_13986281/ Fri, 01 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190301070003_13986281/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190228140002_13985752/ Thu, 28 Feb 2019 14:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190228140002_13985752/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190211162003_13965421/ Mon, 11 Feb 2019 16:20:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190211162003_13965421/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190208113501_13963522/ Fri, 08 Feb 2019 11:35:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190208113501_13963522/ <![CDATA[News - Compass Group ups full-year growth expectations as contract caterer reports "excellent" start to the year ]]> https://www.proactiveinvestors.co.uk/companies/news/214157/compass-group-ups-full-year-growth-expectations-as-contract-caterer-reports--excellent--start-to-the-year-214157.html Compass Group PLC (LON:CPG) shares rose on Thursday has lifted its full-year growth expectations after the contract caterer reported an "excellent" start to the year.

In a trading update, delivered ahead of today’s annual general meeting, the FTSE 100-listed firm said organic revenue grew by 6.9% year-on-year in the three months to the end of December 2018.

READ: Cost-cutting helps boost Compass Group full-year profit

The company added that the growth was driven by strong levels of new business wins, and continued good retention rates.

Compass said revenue in North America increased by 8.0%, reflecting very good growth across all sectors, particularly in Business & Industry and Sports & Leisure.

In Europe, it added, organic revenue growth was 6.4%, reflecting the significant impact of UK Defence contracts, mobilised in the second half of 2018, and a beneficial Sports & Leisure calendar.

The group said revenue in the Rest of the World increased by 2.8%, with ongoing good performance in developing markets partially offset by the run-off of the construction project in Australia.

Looking ahead, Compass added, it expects annual growth to be slightly above the middle of its target growth range of 4% to 6%, with modest margin progression.

At the end of November, the company expected its growth to be in the middle of its 4% to 6% range.

Compass concluded: "In the longer-term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue growth and margin expansion.”

In early morning trading, Compass Group shares were 3.2% higher at 1,751p.

Doing what they do best

Steve Clayton, head of equity funds and manager of the HL Select UK Growth Shares fund commented: “Compass is doing what they do best, grinding out market share gains and squeezing a bit of extra margin from an efficiency drive, at a time when many others will be struggling to hold margins flat.

“With the bulk of the global contract catering market still undertaken in-house, Compass’s outsourcing service offer still has plenty of scope to grow for years to come.”

 He added: “The group does face cost pressures currently, but their constant search for efficiencies across the business is minimising the impact.”

 

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Thu, 07 Feb 2019 08:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214157/compass-group-ups-full-year-growth-expectations-as-contract-caterer-reports--excellent--start-to-the-year-214157.html
<![CDATA[RNS press release - AGM and Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190207070003_13961019/ Thu, 07 Feb 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190207070003_13961019/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190201074502_13954980/ Fri, 01 Feb 2019 07:45:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190201074502_13954980/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190115100001_13935030/ Tue, 15 Jan 2019 10:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190115100001_13935030/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190102070005_13920022/ Wed, 02 Jan 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20190102070005_13920022/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181217103102_13906018/ Mon, 17 Dec 2018 10:31:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181217103102_13906018/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181203070004_13887892/ Mon, 03 Dec 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181203070004_13887892/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181129170001_13885870/ Thu, 29 Nov 2018 17:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181129170001_13885870/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181126143504_13880630/ Mon, 26 Nov 2018 14:35:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181126143504_13880630/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181122131501_13877416/ Thu, 22 Nov 2018 13:15:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181122131501_13877416/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181121144504_13875881/ Wed, 21 Nov 2018 14:45:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181121144504_13875881/ <![CDATA[News - Cost-cutting helps boost Compass Group full-year profit, offsetting impact of lower volumes, flat margins ]]> https://www.proactiveinvestors.co.uk/companies/news/209536/cost-cutting-helps-boost-compass-group-full-year-profit-offsetting-impact-of-lower-volumes-flat-margins-209536.html Compass Group PLC (LON:CPG) saw the benefits of its cost-cutting plans help boost its full-year profit, offsetting the impact of lower volumes, flat margins, and higher costs at its UK business.

The FTSE 100-listed company's underlying operating profit rose to £1.74bn for the year ended September 30, up from £1.63bn a year earlier, even though its operating margin was flat at 7.4%.

READ: Compass Group serves up lukewarm offering

The world’s biggest contract caterer saw its full-year underlying revenue rise by 5.5% to £23.24bn, up from £21.84bn a year earlier.

The firm highlighted excellent growth in North America, with organic revenue up 7.8%, while in Europe organic revenue grew by 2.1% driven by strong net new business in the UK.

Dominic Blakemore, Compass’s group chief executive, said: “We are actively managing the portfolio to increase our focus on food and are in the process of disposing of up to 5% of revenues in non-core businesses. We continually look at bolt-on acquisition opportunities that strengthen our offer and meet our strict returns criteria.”

He added: “Our expectations for FY2019 are positive. The pipeline of new contracts is strong and our focus on organic growth, efficiencies and cash gives us confidence in achieving another year of progress. We expect organic growth to be in the middle of our 4-6% range with modest margin progression.”

The CEO concluded: “In the longer term, we remain excited about the significant structural growth opportunities globally, the potential for further revenue growth and margin improvement, combined with further returns to shareholders." 

The group raised its annual dividend by 12.5% to 37.7p per share, up from 33.5p a year earlier

Solid performance

Steve Clayton, manager of the HL Select funds which have positions in Compass Group said: “This was a solid performance by Compass, with 12.5% growth in adjusted earnings per share and dividends. At the reported level, currency is holding the numbers back, but the underlying progress is strong.”

He added: “Like many companies with large workforces, Compass is finding it harder to get the staff it needs without wage rates edging up, especially in the UK and USA.  This is the environment when managements prove their worth and so far, Compass seems to be handling the labour squeeze well.

“The group’s 95% client retention rate means that new contract wins quickly drop through to growth, rather than being needed to replace clients who have walked away. The combination of strong cost control and loyal clients allowed the group to edge margins higher, despite the difficult economic backdrop.”

In late morning trading, Compass Group shares were 2,7% higher at 1,629.50p.

 -- Adds fund manager comment, share price --

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Tue, 20 Nov 2018 07:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209536/cost-cutting-helps-boost-compass-group-full-year-profit-offsetting-impact-of-lower-volumes-flat-margins-209536.html
<![CDATA[RNS press release - Full Year Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181120070009_13872705/ Tue, 20 Nov 2018 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181120070009_13872705/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181101141501_13851867/ Thu, 01 Nov 2018 14:15:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181101141501_13851867/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181101070002_13850389/ Thu, 01 Nov 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181101070002_13850389/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181011173004_13825950/ Thu, 11 Oct 2018 17:30:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181011173004_13825950/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181011160003_13825786/ Thu, 11 Oct 2018 16:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181011160003_13825786/ <![CDATA[RNS press release - Block listing Interim Review ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181001123001_13811369/ Mon, 01 Oct 2018 12:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181001123001_13811369/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181001070003_13810032/ Mon, 01 Oct 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20181001070003_13810032/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180927140501_13807450/ Thu, 27 Sep 2018 14:05:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180927140501_13807450/ <![CDATA[RNS press release - EMTN Programme - Substitution of Issuer ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180906141502_13781781/ Thu, 06 Sep 2018 14:15:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180906141502_13781781/ <![CDATA[RNS press release - EMTN Programme - Substitution of Issuer ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180906141501_13781779/ Thu, 06 Sep 2018 14:15:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180906141501_13781779/ <![CDATA[RNS press release - Euro Medium Term Note Programme - Final Terms ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180903162558_13777187/ Mon, 03 Sep 2018 16:25:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180903162558_13777187/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180903125829_13776847/ Mon, 03 Sep 2018 12:58:29 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180903125829_13776847/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180801173005_13740488/ Wed, 01 Aug 2018 17:30:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180801173005_13740488/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180801070001_13738684/ Wed, 01 Aug 2018 07:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180801070001_13738684/ <![CDATA[News - Compass Group serves up lukewarm offering ]]> https://www.proactiveinvestors.co.uk/companies/news/201624/compass-group-serves-up-lukewarm-offering-201624.html Contract caterer Compass Group PLC (LON:CPG) served up more of the same in its fiscal third quarter update, leaving full-year expectations unchanged.

Since the end of March, the group has continued to trade well with year-on-year organic revenue growth running at 5.7%, or 5.1% when adjusted for the timing of Easter.

READ: Compass Group heads south as it serves up fall in half-year profits

Growth was driven by strong net new business in North America, an acceleration in Europe and good progress in Rest of World, Compass said.

Organic revenue growth in North America was 7.0% (+6.6% excluding Easter) with the group seeing “particularly good growth” in its Business & Industry, Vending and Healthcare businesses but growth in the Sports & Leisure events business was hit by the impact of the timing of various events.

In Europe, organic revenue grew by 3.2% (2% excluding Easter), with growth driven by strong rates of net new business in the UK.

The company is enjoying the benefit of cost-cutting actions in the UK, which is offsetting the effect of above average inflation, but the group is seeing “a more challenging volume and cost environment” in dear old Blighty, which has contributed to an erosion of the margin by around seven-tenths of a percentage point in the first nine months of the financial year.

In the rest of the world, organic revenue grew by 3.1% (up 2.7% excluding Easter) in the fiscal third quarter.

For the nine months to the end of June, organic revenue growth for the entire group worldwide was 5.1%, up from 4.8% at the halfway point of the financial year.

“Better than planned margin improvement in Rest of World, is offsetting a more difficult volume and cost environment in Europe. As a result, our full year expectations are unchanged, with organic growth above the middle of our 4-6% range, and modest margin progression. Looking to the longer term, we continue to be excited about the significant structural market opportunity globally and the potential for further revenue growth, margin improvement and continued returns to shareholders,” Compass said.

Lee Wild, the head of Equity Strategy at interactive investor said: "There are some issues in the UK around volume and cost, but weaker margin there is being offset by forecast-busting numbers elsewhere and rapid growth in the US. Organic revenue for the quarter grew by 5.7%, or 5.1% excluding Easter, better than the first half and toward the right end of the 4-6% target range.

"Compass has always promised to return surplus cash to shareholders and, depending on profit and cash flow, there a very real possibility it will pay another special dividend within the next 12 months.”

Shares in Compass fell 2.1% to 1,609p in early deals.

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Thu, 26 Jul 2018 08:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201624/compass-group-serves-up-lukewarm-offering-201624.html
<![CDATA[RNS press release - Third Quarter Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180726070006_13731730/ Thu, 26 Jul 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180726070006_13731730/ <![CDATA[RNS press release - Annual Update of Euro Medium Term Note Programme ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180720070003_13725036/ Fri, 20 Jul 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180720070003_13725036/ <![CDATA[News - Compass Group looking for new group finance director with Johnny Thomson to leave by end-December ]]> https://www.proactiveinvestors.co.uk/companies/news/200095/compass-group-looking-for-new-group-finance-director-with-johnny-thomson-to-leave-by-end-december-200095.html Compass Group PLC (LON:CPG) is looking for a new group finance director after the contract caterer announced that Johnny Thomson is to stand down from the role by the end of December.

The FTSE 100-listed firm – which lost its chief executive Richard Cousins at the start of the year following his death with his family in a seaplane crash in Australia on New Year’s Eve – said the search for Thomson’s successor will be started immediately.

READ: Compass Group heads south as it serves up fall in half-year profits

Dominic Blakemore, Cousins’ replacement as chief executive officer, said: "Johnny has played a critical role in Compass' success, both managing regions of our Group and as Group Finance Director, and he leaves the business in strong financial health."

Back in May, the catering giant served up a 4.7% fall in first-half pre-tax profit to £792mln, impacted by foreign exchange headwinds, which meant revenues fell 0.8% to £11.38bn, down from £11.47bn a year earlier.

Despite the drop-off in profits, the world’s largest catering firm hiked its interim dividend by 10% to 12.3p and reaffirmed its full-year forecasts.

In early morning trading, Compass shares were 1.4% lower at 1,600p.

In a note to clients, analysts at Liberum Capital said: "This is the most significant management change since Dominic Blakemore succeeded Richard Cousins as CEO in January this year. Johnny has been with the company for 9 years, becoming group Group Finance Director in 2015 having previously been Regional manager for Latin America.

"It is not yet known where Johnny is going but we expect the Compass vacancy to attract a lot of interest both internally and externally given its global operations and M&A and disposal activity."

 -- Adds share price, analyst comment --

 

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Wed, 04 Jul 2018 07:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200095/compass-group-looking-for-new-group-finance-director-with-johnny-thomson-to-leave-by-end-december-200095.html
<![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180704070004_13704584/ Wed, 04 Jul 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3141/LSE20180704070004_13704584/