Compass Group 4Q Organic Revenue Fell 36%; Sees $128.6 Million Hit

   By Adria Calatayud 
 

Compass Group PLC said Wednesday that organic revenue fell around 36% for the fourth quarter of fiscal 2020, and that it expects to take a 100 million-pound ($128.6 million) hit from contract assets due to the coronavirus pandemic.

The U.K. catering contractor said organic revenue for the year to Sept. 30 declined by around 19%, although its fourth-quarter performance improved as clients in business-and-industry and education began to return to offices and schools in its main markets.

The FTSE-100 company said it expects a negative underlying operating-profit margin of around 3% for the fourth quarter, including impairments on contract assets. Excluding those impairments, the company's fourth-quarter operating margin is expected to be breakeven, it said.

For fiscal 2020 as a whole, Compass expects an underlying operating margin of around 3%.

Compass said the pace at which its revenue and margin will recover remains unclear, especially given the possible increase in lockdown measures in the northern hemisphere through the winter months.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

September 30, 2020 02:29 ET (06:29 GMT)

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