Compass Share Discussion Threads

[essentialinvestor] 19/5/2020 10:11

More challenging economic conditions now!.

What a difference a few months make, eh.

[suetballs] 19/5/2020 10:05

Well at least the capital raise price should put a floor under this.
What about £10 - a nice round figure?
Suet

[suetballs] 19/5/2020 08:47

Used Primary Bid for the first time.
Not difficult and shares should be allocated to my ISA with II.
Only applied for a few but I see this as a long term holding and who knows where it might be in 6 to 9 months.
Suet

[melody9999] 19/5/2020 08:34

Its a coup for Primarybid but its of no interest to me.

[ariane] 19/5/2020 08:28

Seems that support has been pencilled in at 1090p

[adamb1978] 19/5/2020 08:12

Thankfully sold my shares yesterday. EPS forecast for this year is 36p, obviously because of Covid-19. Question is how quickly that bounces back and how close to where it might have been. Obviously c.10% increased share count won't help. Will keep on my watch list however I 'm not sure that the historic 20x PE will be seen again - thats a punchy multiple in the UK. Perhaps it gets back to 60p EPS next year, growing to 75p-80 over 3 years....and 15x PE? 900p share price in the near-term and 1200p mid term?

[buywell3] 19/5/2020 06:57

The first wave hit this hard as the chart shows

Who would bet on there mot being a second wave

Or a third wave

Or even more waves till a successful vaccine was found and given to all round the world

Covid-19 is here to stay till that happens or over 50% of the world population has had it and acquired some immunity

At this stage even that is in some doubt

IMO dyor

[waldron] 19/5/2020 06:56

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.

[nw99] 19/5/2020 06:48

Retail included great news

[la forge] 19/5/2020 06:41

19 May 2020
Half Year Results

[la forge] 19/5/2020 06:39

Dividend

We recognise the importance of a dividend to our shareholders. However, we need to balance this with the exceptional circumstances that the COVID-19 pandemic represents. As a result, as previously reported on 23 April, the Board has decided not to recommend an interim or a final dividend for the year ending 30 September 2020. The Board will keep future dividends under review and will restart payments when it is appropriate to do so.

Summary and outlook

The COVID-19 pandemic has had a profound impact on Compass. We can only exist with the commitment of our colleagues around the world, many of whom have been on the front line of the battle against the pandemic. I am extremely proud of how the organisation has responded, and I'm humbled by the commitment and dedication our people are showing, day in day out.

I want to extend my deepest sympathies to the families of those colleagues that have lost their lives to COVID-19. Since the beginning of the crisis, keeping our colleagues safe has been our overriding focus. Colleague and consumer safety will continue to guide everything we do as we move towards reopening more units over the months ahead.

The first five months covered by the results we are announcing today showed a continuation of the strong performance we reported last year, but it goes without saying that COVID-19 has changed everything. Compass is a resilient and adaptable organisation and we have moved quickly to manage cash and costs and increase liquidity. We are doing all we can to protect jobs by redeploying colleagues into units that remain open and using government job retention schemes where available.

The duration of the pandemic, and the pace at which containment measures are relaxed in different countries is unknown, which makes it a challenge to reliably assess the impact across our markets and our business. We are therefore withdrawing our previous growth and margin outlook for 2020. We remain, however, excited about the significant structural market opportunity globally and the potential for further organic revenue growth, margin improvement and returns to shareholders over time.

Given the uncertainty in the short term outlook, today we have launched a GBP2 billion equity raise to reduce leverage and increase our liquidity. The management actions we have taken, coupled with the strengthened balance sheet will allow us to weather the crisis whilst continuing to invest in the business to enhance our competitive advantages, support our long term growth prospects and further consolidate our position as the industry leader in food services.

Although there are significant short term challenges, I firmly believe that Compass is now well-placed to succeed in a post COVID-19 world. The strengths which have delivered Compass success in the past are the same ones which will deliver success in the future. Our scale and focus on execution, our emphasis on trust and safety, and our financial resilience will put us in a strong position for the recovery and will allow us to generate sustainable long term value for all of our stakeholders.

Dominic Blakemore

Group Chief Executive

19 May 2020

[la forge] 19/5/2020 06:37

CPG Deutsche Bank Hold 1,506.00 - Reiterates

[suetballs] 18/5/2020 19:01

Looks like a capital raise then.
I'd be for it - strengthen the balance sheet and hoover up some distressed rivals at knockdown prices.
Suet

[edwardt] 11/3/2020 17:13

what is happening here? it is a cash compounder, no??

[adrian j boris] 06/12/2019 11:38

Berenberg Buy up from 1,850.00 to 2,050.00 Reiterates

[grupo] 28/11/2019 08:40

JP Morgan Cazenove Overweight 2,040.00 - Reiterates

[essentialinvestor] 27/11/2019 12:14

Since when has CPG been immune from wider macro concerns.

There is a significant cyclical element here and that's always been the case.

[the grumpy old men] 27/11/2019 12:09

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.

[essentialinvestor] 27/11/2019 11:40

The bearish points for me are valuation and slowing growth.
Current valuation demands a lot, so unsurprisingly on any perceived
negative newsflow CPG takes a bit.

There is a cyclical element here which tends to be overlooked during
benign economic conditions.

[adrian j boris] 27/11/2019 07:01

UBS Buy 2,255.00 - Unchanged

[essentialinvestor] 26/11/2019 23:56

Added a small amount before the close.