Compass Share Discussion Threads

[alphahunter] 07/2/2014 15:52

Why didn't I have the guts to short it again at 960+?
Momentum investing can be so powerful that it scares you out of implementng rational decisions.

CPG remains overly expensive in my opinion. Compared to its own history, to other outsourcers or on FcF/EV basis.

For future ref 892p.

[pritijay] 16/1/2014 09:36

Hi Can someone tell me what sort of divi has been declared for the 22/1/2014? TIA

[deanforester] 27/11/2013 18:00

The dividend increase is always welcome.

[miata] 27/11/2013 08:44

Can't help but feel some knew these results a week ago and there will be profit taking.

Final dividend of 16.0 pence per share will be paid on 24 February 2014 to shareholders on the register on 24 January 2014. This will result in a total dividend for the year of 24.0 pence per share (2012: 21.3 pence per share), a year on year increase of 12.7%.

[alphahunter] 09/10/2013 20:42

Maybe. Insidious sector rotation within the FTSE100 that wrongfoots any unsuspicious bottom-up analyst. Time for expensive 18x-22x mid-digit top line organic growth cos to derate and leave space for quality cyclicals. Unilever or Danone anyone?

[megordon] 09/10/2013 08:40

Think you should have kept the short Alpha, bit of resistance at 8.15 ish then freefall to 7.xx.

[yewtrees] 26/9/2013 09:08

Happy with results, in the right direction.
Good steady share for the ISA

[alphahunter] 24/9/2013 15:40

I've closed the short position at 840p today. Kicking myself for missing the 825p intraday low on no news, but hey...
CPG has underperformed the FTSE100 by a few bobs since end of July so I'll revisit the case on 26/09.

[waldron] 07/9/2013 12:12

26 September Pre Close Trading Update
27 November Full Year Results

[alphahunter] 06/9/2013 23:48

Well, we finally got the 5% retracement this afternoon, as the share price dived and then bounced back off 845p to finish at 853p. Me being greedy, I've kept and will keep the short position open for the time being. I still feel that the valuation is overstretched and "visible growth" stocks are currently being left behind in rallies yet consolidate as others in down days due to style rotation.

[alphahunter] 24/7/2013 13:43

Short opened at 890p this am, IMS in line with expectations, share price YTD 25%, expected eps growth 10%, PEG 1.8. Cheaper outsourcers elsewhere.

Valuation call, would be looking for a 5%+ retracement.

[drmomentum] 28/11/2012 13:03

Buy Compass says ShareHunter

[waldron] 27/9/2012 12:34

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.

[waldron] 27/9/2012 12:31

LONDON--Compass Group PLC (CPG.LN), a contract food service and support services company, Thursday said it is restructuring its operations in southern Europe due to challenging trading conditions in the region, even as it said it recorded a strong fourth quarter on higher revenue and operating profit.

MAIN FACTS:

-Fourth-quarter revenue growth on a constant currency basis expected around 8%. Operating profit up around 8%.

-Warns economic conditions in southern Europe--4% of group revenue--have continued to worsen. Restructuring region to "streamline the operations and re-base the business".

-GBP95 million of annual cost savings by 2014.

-Says prospects of the group "strong"; no change to 2012 and 2013 expectations.

-Continues to expect further margin progression over the medium term.

-CEO: "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."

-Shares closed Wednesday at 712 pence, valuing the company at GBP13.21 billion.

-By Simon Zekaria, Dow Jones Newswires; [phone]; [e-mail]

Order free Annual Report for Compass Group Plc

Visit or call [phone]

[richscotsman] 24/5/2012 17:42

Could compass group survive the scrutinity better than self delivery... This wee girls blog is set to change the school dinner market place... 1.2m hits in two weeks and Jamie Oliver and nick Nairn champing at the bit to support her... Way to go Martha...

The school concerned self deliver meals but have Mitie as the Tfm provider for the other services to the campus.

Www.neverseconds.blogspot.com

[ariane] 16/5/2012 13:09

Compass Profit Rises On Higher Revenue; Cautions On Outlook
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Compass (LSE:CPG)
Intraday Stock Chart
Today : Wednesday 16 May 2012
Compass Group PLC (CPG.LN) Wednesday said it has had a good first half after posting a rise in first-half profit on higher revenue. The contract food service and support services company said it remains positive about the opportunities to grow the business, even as the difficult economic climate in Europe is likely to continue to put pressure on top-line growth.
MAIN FACTS:
- Net profit in the six months to March 31 up to GBP427 million (1H 2011: GBP384 million).
- Revenue up 8.6% to GBP8.55 billion (1H 2011: GBP7.87 billion).
- Pre-tax profit up 10% to GBP581 million (1H 2011: GBP528 million).
- Interim dividend per share up 10.8% to 7.2 pence (1H 2011: 6.5 pence).
- On track to complete GBP500 million share buy back by the calendar year end.
- Says expectations for the full year remain positive and unchanged.
- Says well-placed to exploit significant growth opportunities, particularly in North America and emerging markets.
- Expects future improvement in the operating profit margin in the medium term.
- CEO: Whilst we are not immune from the current economic difficulties in Europe, the fundamentals of the business are strong and I remain excited about the opportunities for future growth and margin progression."
- Shares closed Tuesday at 625 pence, valuing the company at GBP11.8 billion.

-By Simon Zekaria, Dow Jones Newswires; [phone]; [e-mail]

[northernlass] 11/5/2012 14:50

Cashing In On Health

Compass Reckons Counting Calories Totals Up The Profit

Compass Group UK & Ireland Launches New Food Programme

Food service provider, Compass Group UK and Ireland has launched a new programme to drive consumer education around its health, wellbeing and sustainable sourcing activities, called Know Your Food.

In March, Compass was the only contract caterer to commit to the Government's calorie reduction Responsibility Deal pledge, promising to reformulate over 5,000 of its standard recipes, reducing the calorie content in these dishes by up to 10 per cent. As part of the pledge Compass also committed to provide consumers with a wide rage of healthier choices and more information about health and nutrition.

Group Managing Director of Compass UK and Ireland, Ian Sarson, says: "Know Your Food will enable us to provide our customers with clear, easy-to-understand information while keeping our clients up-to-date on our leadership in this area."

Branded Know Your Food materials have been developed, and Compass is also introducing Know Your Food boards to be displayed at sites, in line with the varying needs of its sector businesses. Monthly Know Your Food packs will be provided to Compass teams at all appropriate sites which include educational leaflets around key topics such as the importance of hydration and salt reduction.

As part of the programme, Compass will continue to roll-out whole+sum, its innovative mix and match food concept offering meals under 500 calories.



See also:



P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[northernlass] 11/5/2012 14:49

Catering Around The World

This is a very informative video with extensive descriptions of Compass services in various countries and to various corporate and public service customers.

[northernlass] 11/5/2012 14:48

UK & Ireland Video

Short Video that explains the services that Compass provides in the UK and Ireland:

[northernlass] 11/5/2012 14:48

Video Interview With CEO

CEO, Richard Cousins talks to CNBC in Europe about Compass Group's Full Year Results to 30 September 2011. These state the latest full year financial position of the group: