Compass finds improved revenues and profits

1 mins. to read
Compass finds improved revenues and profits
Master Investor Magazine

Never miss an issue of Master Investor Magazine – sign-up now for free!

Read the latest Master Investor Magazine

Food service giant Compass Group (LON:CPG) said that revenues for the year ended 31st March rose by 8.8%, driven by a strong performance in North American markets. Operating profits rose by 6.9% as the company maintained its margins while revenues rose.

Chief executive Dominic Blakemore commented: “Compass had a strong first half. Organic revenue growth was 6.6%, driven by excellent growth in North America, a strong performance in Europe, particularly in UK Defence, and good growth in Rest of World.

“We maintained our strong margin whilst absorbing the increased mobilisation costs in Europe from the higher growth as well as strategic investments being made by the business. Our focus on efficiencies and pricing have continued to offset inflation and helped mitigate ongoing volume weakness in the UK and Continental Europe.

“We have continued to invest in the business to support the exciting long term growth opportunities. During the first half we spent £370 million on bolt-on acquisitions, principally in North America. We have made further progress with our disposal programme and have now exited c. 2% of revenues of non-core businesses. This active portfolio management had a positive impact on the margin in the first half“.

Shares in Compass Group rose by 2.83% to 1,777.50p (as of 13:45 BST).

Take part in our poll

Of the stocks covered by Master Investor in the weekly Small Cap Round Up, which ones do you hold?

The Master Investor Show 2020 tickets are now available. Join us at the Business Design Centre on Saturday 28 March 2020.

Book your FREE tickets today using code: MIBLOG

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *


Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.