The Times Business comment,6 Dec.On the basis of profits in the year to last September 30 the price-to-earnings ratio is a steep 41, but the investment bank Jefferies sees that coming down to an historically normal 26 in the year just started. That is still demanding, but the best companies always command a premium.In May this column rated the shares only a hold because of the likely growth pause, and the price duly shed 100p. However, the greater danger now is that value will be bid away by burgeoning investor enthusiasm.Advice Buy Why The current management is now getting into its stride |
COMPASS : UBS raises its target price
December 04, 2024 at 10:00 am
UBS has reaffirmed its 'buy' recommendation on Compass Group, raising its target price from 2,475 pence to 3,090 pence, a new target that offers a 15% upside potential for the British catering group's shares.
At a time when the market is wondering when margins might return to their pre-Covid peak of 7.5%, we see room for long-term margins to reach 8%," explains the broker in his summary note.
Cercle Finance - 2024 |
Compass operating profit up 16.4% to $3bn
In the period Compass acquired, or agreed to acquire, businesses in Europe including Hofmanns, CH&CO, Dupont Restauration and 4Service AS
Liam J Moran
CATERINGTODAY.CO.UK
Wednesday, 27 November 2024, 12:59 |
CPG – Compass Group
4*
Compass Group posted another robust set of FY numbers continuing on its rock solid upward trajectory. Revenue was up 10.6% to $42.2b, which fuelled underlying operating profit growth of $2,998m and an underlying operating margin of 7.1% (+30bps year on year), with good progress in all regions. EPS was up 14.6% to 119.5c, the business is kicking on well and increasingly profitable. This is not really news, but the confirmation...from WEalthOracle
wealthoracle.co.uk/detailed-result-full/AO./1021 |
Who is the biggest catering company in the world?
Compass is by far the biggest: its global food service revenue is as large as that of Sodexo and Aramark combined. |
Compass Group plc
2,731.00 GBX +78.00 (2.94%)
Nov 26, 11:44 GMT |
 Compass Group profits surge as working from home wanes
The world's biggest caterer has proposed a final dividend of 39.1 cents per share
Compass saw its underlying operating profits jump by 16.4% to $3bn last year
By HARRY WISE
THIA IS MONEY
DAILY MAIL
Updated: 10:24 GMT, 26 November 2024
Compass Group is rewarding shareholders with a major dividend boost after revealing bumper profit growth for the last year.
Compass' underlying operating profits jumped by 16.4 per cent at constant currency levels to $3billion in the year ending September, with the firm citing a sustained recovery in workers returning to offices as a key market trend,
The world's biggest catering business has proposed a final dividend of 39.1 cents per share, giving it a full-year dividend of 59.1 cents per share, a 13.7 per cent increase on the previous year.
Compass achieved growth across all regions, especially its largest territory by sales, North America, where underlying revenues rose by 10.9 per cent to $28.6billion.
The London-based firm also told shareholders on Tuesday that it had benefited from higher attendance and consumer spending within its education and sports-focused operations.
European sales expanded significantly, surging by 15 per cent to nearly $10billion on an underlying basis thanks to double-digit percentage growth from industries such as education, and defence, offshore and remote.
Bumper result: Catering giant Compass Group saw its underlying operating profits jump by 16.4 per cent at constant currency levels to $3billion in the year ending September
Compass has this year bolstered its presence across the continent with two big acquisitions: Hoffmann in Germany, and Reading-based CH&CO, whose clients include Kew Gardens and the Royal Opera House.
It pulled out of five countries 0 Argentina, Angola, Brazil, China and the United Arab Emirates - and agreed to leave another four, mostly in Latin America.
Dominic Blakemore, chief executive of Compass, said: '2024 has been a year of strong operational and financial performance, with net new business growth accelerating in the second half as expected.
'The business continues to successfully capitalise on the dynamic market trends, using its proven competitive advantages to drive higher revenue and profit growth.'
However, Compass expects underlying operating profits to increase by only a 'high single-digit' percentage figure in 2025, driven by 'ongoing margin progression' and organic revenue rising by over 7.5 per cent.
Compass Group shares declined by 2.5 per cent to £25.88 on Tuesday morning, making them one of the FTSE 100 Index's top five fallers.
Adam Vettese, a market analyst at eToro, said the company's outlook was 'perhaps simply getting ahead of the narrative due to the high bar set'.
'The shares have dipped this morning but still sit at almost 20 per cent up for the year and might well represent a buying opportunity if they are to continue their longer-term trajectory.'
Compass operates many corporate workplace canteens and provides hospitality services to prominent sporting venues like Wimbledon and Chelsea Football Club.
It experienced a significant downturn in trade during the early part of the Covid-19 pandemic when employers encouraged their staff to work from home if possible, and sports teams often played matches behind closed doors.
Vettese added: 'Hybrid or remote workers being asked to come back to the office is clearly a hot topic at the moment with many not wanting to relinquish their flexibility.
'Compass Group, however, is a beneficiary of this movement - as the world's largest caterer, they operate many workplace canteens and welcome the volume back through the doors.' |
A bit of a turnaround in the share price this am!
Suet |
16 Jan 2025
Ex-Dividend Date for 2024 Final Dividend
COULD IT,WOULD IT BE AS MUCH AS 30p |
Shareholder returns
Our dividend policy is to pay out around 50% of underlying earnings through an interim and final dividend, with the interim dividend reflecting around one-third of the total annual dividend. The Board has proposed a final dividend of 39.1c which, including the interim dividend of 20.7c, gives a total dividend of 59.8c for 2024. |
Philip Whiterow
PROACTIVE
Compass Group PLC
Compass full year to show continued strong momentum, Jefferies believes
Published: 15:30 20 Nov 2024 GMT
Compass Group PLC's (LSE:CPG) full-year results (26th November) will be slightly ahead of consensus forecasts, believes Jefferies, due to positive top-line and margin momentum.
Management's usual conservative guide could prevent near-term upgrades, but the growth drivers of sustainable growth acceleration, peer outperformance, and Europe's inflection should be reinforced pointing to upside risk later in the year.
In the fourth quarter, Jefferies is expecting teh contract caterer to report 9.4% organic growth and 10.5% for the year overall.
Underlying profit growth [EBIT[ should be 17% y/y (guidance is more than 15%) with margin up 40bp y/y to 7.2%.
In 2025, Jefferies expects organic growth at 8.6% y/y and 20bp y/y margin improvement, leading to 13% y/y underlying profits growth. |
Hardly worth mentioning, but another ATH. Hold and prosper? |
MARKET REPORT: Compass Group points north as workers return to office
By John Abiona
DAILY MAIL
Updated: 08:53 BST, 24 July 2024
Compass Group is cashing in on workers returning to office canteens and snubbing pricier High Street restaurants.
The world's largest catering company, which makes fresh food for everything from sporting events to schools and hospitals, has benefited from more people going back to work following the pandemic.
Compass said employees are buying meals at the office rather than eating lunch at restaurants - which have raised prices to combat high inflation.
That helped the blue-chip firm raise its annual forecasts for the second time this year. |
Interim Divi Pay Date 25th July
16.20p perhaps |
Written by:
Oliver Haill
Edited by:
Philip Whiterow
Compass Group PLC
(
LSE:CPG
)
Compass update reassures with analysts eyeing growth 'sweet spot'
Last updated: 16:04 23 Jul 2024 BST, First published: 15:04 23 Jul 2024 BST
Compass Group PLC -
Compass Group PLC (LSE:CPG) reassured any investors who had been doubting the catering giant with quarterly results that ticked most boxes, with some analysts saying the company is now entering a "sweet spot".
Barclays analysts said expectations had been "low" going into the results today, after a recent warning by French rival Sodexo that sales were lower than expected.
But the 10.3% organic growth number, while down on the previous two periods, beat the consensus forecast of 9.5%, so was taken well by the market.
An update on full-year guidance was also a slight improvement, the Barclays team said, with the language changing to "underlying operating profit growth above 15%" on a constant-currency basis, compared to "towards 15% EBIT growth" previously.
The positive tone in management's comments on net new contracts, retention and signings momentum "is key", the Barclays analysts said, "as this has been a source of concern for the last few Qs".
At Jefferies, analysts said the better-than-expected growth in organic revenue growth was "driven by an appealing reacceleration in net new momentum and better-than-expected like-for-like volume".
Their view is that net new business is likely to remain healthy because industry bid pipelines remain elevated.
"Compass is entering a sweet spot as high net new business, EBITA margin recovery, and M&A tailwinds converge," the Jefferies analysts said.
"Our proprietary analysis of market size and share confirms that industry outsourcing momentum has doubled since Covid, large peers are gaining share, and growth could remain elevated for a decade.
"We believe Compass’s organic sales could be 50%+ above pre-COVID in FY26F, but the shares trade in the middle half of the historical valuation range."
PROACTIVE |
Great update.
Suet |
rté
Caterer Compass Group raises annual forecast for second time
Updated / Tuesday, 23 Jul 2024 07:24
Compass is the world's largest catering group
British catering group Compass has today raised its 2024 profit and revenue forecasts for the second time this year despite easing prices, after new businesses helped it beat third-quarter revenue expectations.
The world's largest catering group now expects underlying operating profit to grow above 15% and organic revenue above 10% for the fiscal year ending September.
It had earlier said profit would rise towards 15% and revenue towards 10%.
Compass, which operates in more than 30 countries and caters the likes of Microsoft, Shell and Harvard Business School and events such as the Wimbledon tennis championship and Coachella music festival, reported a 10.3% rise in organic revenue for the quarter ended June 30.
Analysts had expected an organic revenue growth of 9.5% for the quarter, according to a company-supplied consensus.
Compass Group, which emerged as a much bigger business from the pandemic as companies turned to outsourcers to meet their canteen needs, has benefited from new businesses and a return to office despite food and labour inflationary headwinds. |
Latest Dividends
Summary Previous dividend Next dividend
Status Paid Declared
Type Final Interim
Per share 28.1p 16.299p (20.7c)
Declaration date 20 Nov 2023 (Mon) 15 May 2024 (Wed)
Ex-div date 18 Jan 2024 (Thu) 13 Jun 2024 (Thu)
Pay date 29 Feb 2024 (Thu) 25 Jul 2024 (Thu) |
Remarkable lack of interest in this company that made £1.3 Billion last year. Maybe everyone else has also quietly bought and sat on their shares for years! |
I have been watching this for a while but didn't expect the gift I was offered this morning. Data looked good to me so took a position early on. Nice to see a good profit before the close of business. But in this market you never know what will happen next. GLA all holders. |
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