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The Markets
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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Leisure, gaming and gambling

Compass jumps as trading returns to pre-Covid levels

The catering group reported record new business wins of £2.5bn over the last 12 months

Compass Group PLC (LSE:CPG) shares shot up as the catering company said it was trading close to pre-pandemic levels, as arenas and university halls fill up again.

Half-year operating profit recovered to £638mln from the pandemic-squished £168mln a year ago, with strong growth across all sectors and revenue up 38% to £11.6bn.

In the second quarter to end-March, the FTSE 100 group said underlying revenue had reached 99% of the level from pre-pandemic 2019, with the run rate "now above our pre-COVID level".

Client retention was said to be at its highest ever rate at 95.8%, with record new business wins of £2.5bn over the last 12 months.

Net debt of £2.5bn was at 1.3 times underlying profits, back within management’s target range.

Full-year profit margin guidance has been left unchanged, although the organic revenue growth estimate was nudged higher to a possible 30% from 20-25% before.

The shares jumped 10% to 1,736p in the first hour of trading on Wednesday.

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