Compass Group Fiscal Year 2020 Profit Falls on Lower Revenue

By Matteo Castia

Compass Group PLC on Tuesday reported a fall in pretax profit for fiscal 2020 on lower revenue, as the coronavirus pandemic has severely hurt the business in the second quarter.

The U.K. catering contractor made a pretax profit of 210 million pounds ($279.8 million) for the year ended Sept. 30, compared with a restated GBP1.49 billion in fiscal 2019.

Revenue fell to GBP19.94 billion from GBP24.88 billion a year earlier. Coronavirus restrictions reduced volumes in business and industry, education, and sports and leisure in all regions, the company said.

As anticipated in April, the board declared no final dividend for the year in an effort to preserve resources amid the coronavirus pandemic. "The board will keep future dividends under review and will restart payments when it is considered appropriate to do so," the company said Tuesday.

Underlying operating margin was 2.9%, in line with the company's guidance for around 3%. Compass said it expects underlying operating margin for the first quarter of fiscal 2021 to be around 2.5%.

The company said it expects the figure to return to profitability in the fourth quarter of fiscal 2021.

Write to Matteo Castia at [e-mail]

(END) Dow Jones Newswires

November 24, 2020 02:32 ET (07:32 GMT)

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