Compass Investors - CPG

Compass Investors - CPG

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Compass Group Plc CPG London Ordinary Share GB00BD6K4575 ORD 11 1/20P
  Price Change Price Change % Stock Price Last Trade
-8.00 -0.53% 1,507.50 09:22:53
Open Price Low Price High Price Close Price Previous Close
1,527.50 1,507.50 1,532.50 1,515.50
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weemonkey: early COVID recovery candidate. Patient investors will be rewarded.
ariane: Outlook At the time of our Half Year results announcement on 19 May 2020 we withdrew our previous growth and margin outlook for 2020. Trading in the third quarter was in line with the Slow Recovery scenario described in our Company Presentation of 19 May 2020. The pace at which our volumes will recover is still unclear, especially given a possible increase in local lockdowns. We are encouraged by the relative improvement in performance in June, as well as the early signs of an acceleration in first time outsourcing opportunities. In the meantime, we continue to work with our clients to help them reopen safely. We are proactively managing the business, reducing our costs, rebuilding our margins and investing to strengthen our competitive advantages. Looking further ahead, we remain excited about the significant structural market opportunity globally, and the return to organic revenue growth, margin improvement and returns to shareholders over time. 2020 Reporting Calendar In order to provide analysts and investors with more frequent updates on our financial performance our reporting calendar in 2020 will be as follows: 30 September 2020 FY 2020 Pre-close trading update 24 November 2020 FY 2020 Results Compass will hold a conference call for investors and analysts today 8:30a.m. (UK time).
waldron: CHEERS FELLAS The Retail Offer will be open to retail investors from 7.02 a.m. on 19 May 2020. The Retail Offer will close at the same time as the Bookbuilding Process is completed. Settlement for the Placing Shares and Subscription Shares and Admission are expected to take place on or before 8.00 a.m. on 21 May 2020.
the grumpy old men: PROACTIVEINVESTORS Giulia Bottaro 10:23 Wed 27 Nov 2019 viewCompass Group Compass numbers point to flat returns, says Liberum The broker downgraded its recommendation for the FTSE 100 catering giant to 'hold' on the back of the latest results Compass Group - Liberum downgrades Compass to ‘hold’ Compass is cutting costs Compass Group PLC (LON:CPG) shares continued to head south a day after the catering giant's annual results as analysts said a new round of cost cutting have negative implications for investor returns over the medium-term. The results revealed that the FTSE 100 group's diversity in geographies and divisions “does not make it immune to the macro environment”, said broker Liberum, downgrading its recommendation to ‘hold’ from ‘buy’ and cutting the target price to 2,000p from 2,240p. READ: Compass profits undercooked as its moves to counter European slowdown The cost-cutting will offset short-term margin pressures but will incur “substantial” cash costs which, paired with recent acquisitions, imply “no scope for further cash returns to shareholders”, Liberum's analysts said in a note to clients on Wednesday. Compass said in its preliminary results a day earlier that it is “taking prompt action to adjust our cost base” in Europe and certain other markets outside the US, resulting in non-underlying cash charges of around £160mln spread across the past and the new financial year, plus a non-cash charge of £140mln. Statutory operating profit fell 5.4% to £1.6bn and revenue swelled 6.4% to £25.2bn. Liberum revised group organic growth forecast down to 5% and 2020 forecasts are now expected to be flat year-on-year, as the strong pipeline in North America meets caution over volume and performance in Europe. Shares in the company, having risen to an all-time high in the summer and up 27% since the start of the year until the results, were down 3% to 1,866.5p on Wednesday morning.
la forge: KNOW THY COMPETITION BARCELONA (Agefi-Dow Jones) - Sodexo's margin (SW.FR) is expected to improve from 2019, says UBS, given the positive impact of changes to its health and education activities in the United States and the fact that his reorganization plan is now complete. The French market is starting to recover and Brazil is stabilizing, which should also have a beneficial effect, as the improvement in the sector of energy and raw materials and economies of scale, says the bank. Denis Machuel, who will become managing director of Sodexo in January 2018, is not expected to change the group's strategy, according to UBS, adding that the investors' day planned for next summer should give some indication of its value creation projects. UBS raises the price target from 122 to 123.5 euros. The title loses 1.5% to 106.35 euros.
waldron: 27 September 2012 Compass Group PLC Trading Update and European Action Plans This statement updates investors on the Group's progress in the current year, ahead of the announcement of its results for the year to 30 September 2012 on 21 November 2012. Strong fourth quarter; full year expectations remain positive and unchanged - Full year constant currency revenue growth expected to be c.8%; organic revenue growth of c.5.5% - Operating profit increase of approximately 8%; margin slightly ahead of last year North America and Fast Growing & Emerging generating excellent growth - Full year organic revenue in North America expected to be up over 8% and Fast Growing & Emerging over 12%; strong pipeline of new contracts - Ongoing efficiencies being reinvested to drive growth and delivering margin expansion in North America Acceleration of cost actions across Europe to drive long-term competitiveness - Economic conditions, particularly in Southern Europe (4% of Group revenue), have continued to worsen - Fundamentals of the business are solid; programme to unlock further efficiencies to manage challenging economic conditions and position us for future growth - Southern Europe restructuring to streamline the operations and re-base the business - GBP95m of annual cost savings by 2014 from GBP150m exceptional cash charge over two years and a non-cash exceptional charge of GBP195m, mainly in Southern Europe Prospects of the Group remain strong; no change to 2012 and 2013 expectations - Positive outlook in North America and Fast Growing & Emerging, combined with European action plans, underpin expectations for 2013 - Well placed to exploit significant growth opportunities in food and support services globally - Maintain expectation of further margin progression over the medium term Richard Cousins, Group Chief Executive, said: "Trading in the fourth quarter has been good and, in line with our expectations, organic revenue growth will be around 5.5% for the full year. The positive trading momentum in North America and Fast Growing & Emerging has continued and the outlook in both regions is encouraging. The fundamentals of the European business remain solid, but we are taking decisive action to protect profitability in the immediate future and improve operational efficiency over the medium term. Overall, the prospects for the business around the world are good and I remain confident that we will continue to drive revenue and margin growth." Group Compass has delivered another good performance in the fourth quarter of the financial year and our expectations for the full year remain positive and unchanged. North America and Fast Growing & Emerging have performed strongly throughout the year, with high levels of new business and a consistent rate of retention. Economic conditions in Europe have continued to decline, in particular in Southern Europe, and hence we are announcing today a programme of further cost efficiency measures across Europe, together with a comprehensive restructuring plan for Southern Europe. Through our relentless focus on efficiencies, we have generated further cost savings in the year across the Group. These have been partly reinvested in growth opportunities, particularly in the Fast Growing & Emerging markets, and they have also helped us to manage the difficult economic environment and negative like for like volume trends in parts of Europe. In the fourth quarter, organic revenue growth is expected to be around 6%. For the full year, including the contribution from acquisitions, we anticipate that constant currency revenue growth will be around 8% and organic revenue growth will be around 5.5%. The operating profit margin for the full year is expected to be slightly up on last year. Free cash flow conversion remains strong. North America The positive trading we have experienced throughout the year has continued in the fourth quarter, with very good levels of organic revenue growth, retention and margin progression. We have benefited from the ongoing revenue contribution from the Ascension Health contract and have now successfully mobilised all 90 hospitals. In addition to this, we have recently started operating a very significant contract with Texas A&M University that we won earlier in the year. We have maintained the strong performance in our Sports & Leisure business from the third quarter. Our pipeline of new business is encouraging and our focus on generating further efficiencies remains. Overall, for the full year, we expect organic revenue growth of over 8% and 10bps of margin improvement, delivering an 8% operating profit margin for the first time. Looking further forward, North America will continue to be the principal growth engine for the Group; the outsourcing culture is vibrant and we have excellent momentum in the business there. Fast Growing & Emerging Organic revenue continues to grow at a fast pace, driven by good new business wins and like for like revenue growth across most countries. In particular, we have seen strong double digit growth rates throughout the year in Australia, Brazil, Turkey, other parts of Latin America and India. We have also continued to invest in the appropriate infrastructure and opportunities to underpin the next stage of sustainable growth. The region is an increasingly important part of our strategy and we are maintaining our focus on expanding our presence in these markets. We see many exciting growth prospects and an accelerating trend towards outsourcing. For the full year, we expect organic revenue growth of 12% and a flat margin versus last year. Europe & Japan Trading Economic conditions in Europe, and particularly in Southern Europe, have worsened throughout the year, as the financial crisis and wider uncertainty continues. Whilst we are still seeing good levels of new business, in particular in the Nordics, France and Spain as organisations recognise the benefits of outsourcing, we are not immune from the economic difficulties. As a result, we have seen increasingly negative like for like volume trends, which have accelerated in the second half of the year and are now running at minus 2-3%. Within this, the Southern European countries of Italy, Spain and Portugal have seen like for like volume declines of around 5%. The challenging conditions are also putting some modest pressure on retention and there has been a small increase in client closures. The recovery in Japan is ongoing, although prior year comparatives are becoming stronger. Overall, we expect organic revenue for the full year to decline by approximately 1% and the operating profit margin to be flat on last year. European Action Plans In April 2012, we changed our management structure, dividing the Group into three regions - North America, Europe & Japan and Fast Growing & Emerging - to reflect the different challenges and opportunities. This has brought a more focused and incisive approach to running the business. Under the leadership of Andrew Martin, the Group's former Finance Director who was appointed Chief Operating Officer for Europe & Japan, we have undertaken a detailed bottom up review of our European strategy and operations. The review concluded that we have a good strategy in place and that, over the medium term, there are many opportunities to drive growth in food and support services. However, it also confirmed that our performance in Europe, particularly in Southern Europe, is inevitably being impacted by both the difficult economic conditions and the structure of our operating cost model. In response, we will address two key issues. Firstly, the cost structure in our European businesses, and secondly the very challenging conditions in Southern Europe. Through making these changes, we will protect the profitability of the business in the immediate future and, more importantly, improve our operational efficiency over the medium term. Accelerated Efficiencies across Europe The expectation of a prolonged period of economic weakness demands that we further reduce our European cost base and drive greater competitiveness. A key action to deliver this will be to unlock our significant cost of labour (MAP 4). This will be achieved through a greater focus on our labour model, which will reduce our fixed cost base and increase our flexibility. In addition, we are driving programmes in our cost of food (MAP 3) and above unit overheads (MAP 5) with even greater intensity. Southern Europe Restructuring The very challenging trading conditions in Southern Europe require more comprehensive action. We will simplify the business, deal with the immediate challenges and re-base our operations around a smaller core of profitable, cash generative contracts. In addition to reducing our cost base, important actions include: making provisions for previously profitable contracts that have been affected by the severe deterioration of the economy, providing for the recovery of certain debts and exiting a small number of non-core businesses that are no longer strategically or economically attractive. Most of these costs are non-cash. Overall, revenues from our business in Southern Europe will reduce from GBP800m to approximately GBP600m as we re-base our operations to a more profitable and cash generative business from which to grow. Exceptional Cash Charge Relating to Accelerated Efficiencies The accelerated efficiency programme across the continent will incur an exceptional cash cost of GBP100 million in 2012 and GBP50 million in 2013. Combined, we expect these investments to generate GBP50 million of annual savings in 2013, increasing to a full run rate of GBP75 million by 2014, implying a cash payback of around 2 years.
wanttowin: Thanks again for the input EI, I am a novice investor been going for just 9 months,to be frank its been a bit of a nightmare, I think I can be called 'a jittery investor' at the moment, feel that I am sailing against the wind in a leaking boat..confidence in anything, is at a worrying low.
mmx trader: I'm not an investor, I speculate up or down not bothered about the company. dont even care about what they do
investinggarden: Compass investors see share price go north
brain smiley: Evolution Securities analyst Nigel Parson has issued a buy note on the business. He said: A modest decline in sales has been more than offset with cost efficiencies feeding through strongly to margins. Strong organic growth in Education and Healthcare also offset business and industry cyclical weakness. We reiterate our view that Compass and Sodexo are core investments. Our 410p target price generates a PE of 14.2 times to September 2009. Over at Charles Stanley the mood was also positive, with analyst Tony Shepard recommending clients to buy the shares. He said: The year-end comments on organic revenue growth and margins should please investors as should the confidence about driving further efficiencies from the business. After the last update in July, the shares sold-off because of a sharp decline in organic growth over the third quarter period. Organic revenue growth could still be negative in the first quarter of 2010 but we expect it to recover in the second half of 2010. Overall, in 2010, we expect flat organic growth and further profit margin enhancement. The share valuation looks attractive compared to its main competitor Sodexho and the wider equity market.
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