Compass Share Discussion Threads

[suetballs] 10/5/2023 06:18

Spectacular half year results.
Well done cpg.
The market can’t fail to be happy!
Suet

[florenceorbis] 05/5/2023 19:22

Consensus

Mean consensus OUTPERFORM

Number of Analysts 23

Last Close Price 2 100,00 GBX

Average target price 2 114,53 GBX
Spread / Average Target 0,69%

LOOKING TOPPY AND MIGHT FALL AWAY

[la forge] 09/2/2023 15:21

Compass Group revenues boosted on 'strong outsourcing trends' as world's largest catering company toasts workers' return to offices

Compass Group said it saw growth in all regions in its first quarter

By Jane Denton For Thisismoney

Published: 14:48 GMT, 9 February 2023 | Updated: 14:48 GMT, 9 February 2023



Compass Group has posted organic revenue growth of 24 per cent for its first quarter as the firm told investors it is 'excited' about 'significant growth potential' across its markets.

The world's largest catering comapany said it continued to benefit from 'strong outsourcing trends', with net new business growth of 5.5 per cent, significantly above its typical rate of around 3 per cent.

FTSE 100-listed Compass said like-for-like volumes were 'particularly strong' in business and industry, as employees continued to return to the office and major sporting events.


On the up: Compass Group has revealed that its organic revenues swelled by 24% in its first quarter


On the up: Compass Group has revealed that its organic revenues swelled by 24% in its first quarter

But, the group, which is the world's largest catering company, and serves office workers, university students, patients and pensioners in old age homes across 40 countries, said it was 'mindful' of the uncertain macro-environment and any related hit to discretionary spending.

The company said: 'Whilst inflation remained elevated, we continued to work closely with our clients to help mitigate this pressure both operationally and through appropriate pricing.'


All regions were said to have 'performed strongly' in the quarter, with organic growth of 23 per cent in North America, 26 per cent in Europe and 27 per cent in its rest-of-world arm.

Looking ahead, Compass said: 'The outsourcing market remains strong, and we are excited about the significant growth potential across our markets.

'The increasingly complex operating environment and growing focus on sustainability and digitalisation, combined with our market leading offering, mean we are best placed to capture these opportunities.

'We remain positive for FY 2023 and reiterate our guidance. We expect operating profit growth above 20 per cent on a constant currency basis, organic revenue growth of around 15 per cent, weighted towards the first half of the year, and an underlying operating margin above 6.5 per cent.'

The likes of Compass and Sodexo have emerged from the pandemic stronger, benefiting from first-time outsourcers, who are looking to large catering groups to help with their canteen requirements in a bid to keep costs down.

Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown, said: 'As the world has been returning to the office, demand for food for events has rebounded sharply, likely helped by firms and organisations focusing on pulling staff back in for networking, even if they work at home for part of the week.

'New business wins have also helped push worries about rising costs into the background.

'The company is mindful that there could still be an unappetising period on the way, given the continued cost-of-living crisis, but its contracts with schools, care homes and hospitals could keep providing steady income.'

Compass shares were down 0.69 per cent or 13.00p to 1,875.00p this afternoon, having risen by around 3 per cent in the last year.

[gibbs1] 09/2/2023 08:23

Compass Group PLC said Thursday that it had growth across all its regions in the first quarter of fiscal 2023 as it continued to benefit from outsourcing trends and backed its full-year guidance.

The U.K. catering contractor said organic revenue in the three months period ended Dec. 31 grew 24% with net new business growing 5.5% in line with the previous fiscal year.

Compass had double-digit like-for-like volume increases in all regions, particularly in its business and industry sector as well as sports and leisure, it said.

The FTSE 100 company said it is positive for the year and backed its guidance for fiscal 2023. It expects to deliver operating profit growth of more than 20% on a constant-currency basis, organic revenue growth of around 15% weighed toward the first-half, and an underlying operating margin above 6.5%.

It said that if currency movements continue for the rest of the year, its fiscal 2022 results would benefit from foreign-exchange translation with revenue positively impacted by 1.31 billion pounds ($1.59 billion) and operating profit by GBP94 million.



Write to Elena Vardon at [e-mail]



(END) Dow Jones Newswires

February 09, 2023 02:37 ET (07:37 GMT)

[the grumpy old men] 04/12/2022 13:50

dec/05/22   Berenberg European Conference

jan/19/23   Ex-dividend day for final dividend

feb/09/23   Q1 2023 Sales and Revenue Release - Trading Update

feb/09/23   Annual General Meeting

[waldron] 30/11/2022 15:23

Compass's Current Momentum Likely to Bring Mid-Term Goals Closer
30 November 2022 - 02:06PM
Dow Jones News

Compass's Current Momentum Likely to Bring Mid-Term Goals Closer

1156 GMT - Compass Group's fiscal 2023 earnings are expected to be driven by continued momentum and robust net gains after the group reported a robust performance for the previous year, Shore Capital analyst Greg Johnson says in a note. The U.K. catering contractor is likely to also report further price and like-for-like sales recovery after profitability returned to prepandemic levels in the second half of fiscal 2022, Johnson says. "We previously set out a blue-sky scenario for revenues to build beyond GBP35 billion in the medium term," Johnson says. "Given the current momentum we now see this as more of a forecast than a pipe dream." ([e-mail])

[waldron] 21/11/2022 08:57

Jeremy Cutler

08:31 Mon 21 Nov 2022

Compass lifts dividend as profits and revenues grow strongly

The company highlighted "excellent" net new business of 7.5%, while client retention rates improved to a record 96.4%, up 100 basis points on 2021


Catering company Compass Group PLC (LSE:CPG) rewarded shareholders with a 125% increase in its full-year dividend and launched a further £250mln share buy-back as it reported strong growth in profits and revenues.

In the year to 30 September 2022, underlying operating profit grew 87.5% to £1.59bn, on revenue of £25.8bn, up 37.5% on the previous year.

The company highlighted "excellent" net new business of 7.5%, while client retention rates improved to a record 96.4%, up 100 basis points (bps) on 2021.

Underlying operating margins improved by 170bps in the year to 6.2% and are expected to rise in full-year 2023 to 6.5%.

For 2023, Compass forecast constant-currency underlying operating profit growth of over 20%, delivered through organic revenue growth of around 15%, weighted towards the first half of the year.

The group, which has completed an initial £500mln share buyback, also announced a further £250mln buyback, to be completed in the first half of 2023.

Chief executive Dominic Blakemore said: "The group's performance surpassed our expectations both in terms of net new business growth and base volume recovery, with Business & Industry now operating above its pre-pandemic revenues.”

"Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels and rewarding shareholders with further returns."

Proactive

[blackhorse23] 21/11/2022 08:28

Switching to CURY (LSE)

[suetballs] 21/11/2022 08:18

And the share price falls - what does a company have to do?
Performance surpassed expections for 2022 and profit growth for 2023 anticipated to be above 20%.
Obviously not good enough.
Suet

[waldron] 21/11/2022 07:52

Compass Group Fiscal Year 2022 Pretax Profit Rose on Sector Reopening, To Buy Back GBP250 Million
11/21/2022 | 07:42am GMT


By Michael Susin

Compass Group PLC reported on Monday a better-than-expected pretax profit increase for fiscal 2022 driven by a robust recovery on volumes and new business growth amid lower costs, and announced a further capital return to shareholders as it expects further growth in fiscal 2023.

The U.K. catering contractor said it will launch a further share buyback program of up to 250 million pounds ($297.2 million) in the first half of fiscal 2023, bringing the total return program to GBP750 million.

The board has also declared a dividend of 31.5 pence a share, compared with 14 pence a share in fiscal 2021.

The company made a pretax profit of GBP1.47 billion for the year ended Sept. 30 from GBP464 million reported in fiscal 2021. This compares with a consensus forecast of GBP1.32 billion taken from FactSet and based on seven analysts estimations.

Revenue rose 42.5% to GBP25.5 billion from GBP17.91 billion a year earlier, reflecting the reopening of sectors and improved client retention. Underlying operating margin was 5.9% compared with 4.5% the previous period.

"The group's performance surpassed our expectations both in terms of net new business growth and base volume recovery, with Business & Industry now operating above its pre-pandemic revenues. The strong growth trends seen in the first half have continued, with net new business accelerating through the year in all our regions," Chief Executive Dominic Blakemore said.

"Our clients are continuing to face operational complexities and inflationary pressures, which are driving increased outsourcing, and we are successfully capitalizing on the resulting growth opportunities," Mr. Blakemore added.

The company said it expects underlying operating profit growth for fiscal 2023 to be above 20%, to be delivered through organic revenue growth of around 15%, and underlying operating margin above 6.5%.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

[suetballs] 18/11/2022 20:59

Looks like Monday will be a good day.
Suet

[waldron] 18/11/2022 16:07

Oliver Haill

15:45 Fri 18 Nov 2022

Compass to serve up strong sales and profit growth as more companies outsource catering

City analysts see operating profit steaming up from £812mln to £1.5bn


Compass Group PLC (LSE:CPG) will serve up full-year results on Monday that will also be the caterer's first investor update since July, when it upgraded revenue guidance and maintained its profit margin target.

In the third quarter, organic revenue growth accelerated from the first half, with underlying sales at 109% of their pre-Covid levels, with new business growth accelerating thanks to more companies outsourcing their catering for the first time "due to ongoing operational challenges and heightened inflation".

“Longer term, we expect revenue and profit growth above historical rates, returning margin to pre-pandemic levels, and rewarding shareholders with further returns,” the FTSE 100-listed group said.

The shares jumped on the news, regaining their pre-pandemic levels and only slipping slightly in the four months since. 

For Monday's results, the City analyst consensus is for revenue to rise from £18.1bn a year ago to £25.1bn and operating profit to steam up from £812mln to £1.5bn, with a full year underlying profit margin of 6.1% that implies stronger second half than first.

Proactive

[rjmahan] 14/8/2022 22:39

Does anyone know how much of their costs is EU/UK energy / how much is cost+ ? With low margins and expanding prices thinking this could be a short at these levels.

[johnrxx99] 26/7/2022 06:35

Very positive Q3 update.

[wad collector] 20/7/2022 17:04

Just noticed an old posting of mine

wad collector20 Mar '07 - 21:00 - 1699 of 1902

I just sold out at 320- I feel this has gone well for the last 12 months and cannot see much upside in the short term.


Wrong about that eh?

[johnrxx99] 27/6/2022 06:23

I should add, mining the FTSE100

[johnrxx99] 21/6/2022 09:05

This popped up on my recent Sharescope mining for EV/EBITDA. For growth, it is number 2 to AZN. Albeit currently at a ratio 21.75, for FTSE100 company not too high, for some.

[waldron] 23/5/2022 14:51

Compass appoints climate change expert as adviser

Monday 23rd May 2022


Facilitate Team




Compass Group UK & Ireland has appointed Professor Sir Charles Godfray of the University of Oxford as chief climate and sustainability adviser to its executive team.

Godfray, a fellow of the Royal Society, is a population biologist with wide interests in the environmental sciences and has published papers on fundamental and applied areas of ecology, evolution and epidemiology. He has spent his career at Oxford and Imperial College and is currently director of the Oxford Martin School and professor of population biology at Oxford.

He will oversee the shaping and delivery of Compass’s commitment to achieve Climate Net Zero by 2030 for the benefit of clients.

Godfray has a particular interest in food security and led the UK Government Office of Science’s Foresight report on the Future of Food and Farming. Formerly chair of Defra’s Science Advisory Council, he is a trustee of the UK Centre for Ecology & Hydrology.

He is also co-director of the Livestock, Environment and People (LEAP) project at Oxford that included an eco-labelling pilot, which Compass supported across its business and industry sector.

In 2017 he was knighted for services to scientific research and for scientific advice to the government.

Carolyn Ball, director for delivery of Net Zero, said: “Specialist guidance will play an increasingly integral role in the business decisions needed to deliver our climate commitments, so this level of direction and thought leadership within our executive team is a real privilege for everyone at Compass and all those working with us.”

Godfray added: “Compass’;s size and scale mean that it is uniquely positioned to have a significant impact on the food system. The team’s commitment to working with suppliers, clients and its people is outstanding and I’m looking forward to contributing to their ambition. Together, we must create the blueprints for the wider industry to learn from.”

[waldron] 19/5/2022 12:46

Summary and outlook

The Group is exiting the pandemic strongly and has achieved the important milestone of revenue exceeding its pre-COVID level on a run rate basis. Organic growth was strong in the first half of the year as the Group benefited from like for like volume recovery, high levels of net new business and pricing. Underlying operating margin was in line with guidance and is expected to improve in the second half.

While there are global inflationary pressures, which are expected to increase and continue at a heightened level, we have a resilient business model to help mitigate this challenge. This environment is also leading to an acceleration in first time outsourcing as organisations seek cost savings. We have a clear strategy to capture this growth opportunity based on our scale, expertise and sectorised market approach. Our value creation model has proven very effective and remains unchanged. The Group's market leading position combined with a relevant offer and capability are resulting in record new business wins and our highest ever client retention rate.

Given our strong first half performance and positive outlook, we are increasing our full year organic revenue growth guidance from 20 - 25% to around 30%. Whilst we are cautious about the inflationary environment, our margin guidance remains unchanged, with full year underlying operating margin expected to be over 6%, exiting the year at around 7%.

Our disciplined capital allocation framework supports growth whilst ensuring a robust balance sheet, rewarding shareholders through dividends and additional shareholder returns. This is demonstrated through the 9.4 pence per share interim dividend and the share buyback programme announced today with up to GBP500m during this calendar year.

Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels and rewarding shareholders with further returns.

[waldron] 19/5/2022 12:45

Upcoming Events


June/09/2022 Ex-dividend day for interim dividend

[ram376s] 19/5/2022 12:18

CPG Pop up .300 nurses to train for GDR new game changer test.Multibagger possible .ANticipated news .