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The Markets
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The Markets
by Proactive
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Leisure, gaming and gambling

Compass encouraged by June performance, quarterly revenue tans 44%

The education and business & industry sectors started to cautiously reopen, while sports & leisure remained fully shut

Compass Group PLC (LON:CPG) has said it is encouraged by the improvement in its performance in June, although the pace of recovery is still unclear following the coronavirus pandemic lockdowns.

The FTSE 100-listed firm still saw revenue in the third quarter to June 30, 2020, drop by 44%, with the margin down 6.3%. In the year to date, revenue was down 14% and the margin up 3.9%, respectively.

READ: Compass makes history with fundraising and opens door for more smaller investors

The contract caterer said performance in healthcare and defence, offshore & remote was good throughout the period, with education and business & industry sectors starting to cautiously reopen in June, while sports & leisure remained fully shut.

As of the end of June, 60% of the business was operating, compared to 55% by the end of May, it added.

Cash burn in the quarter was £260mln, including capital expenditure of £130mln, and was mainly contractually committed investments. Net debt at June 30 was £3.2bn, with total liquidity of £5bn.

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