Compass Group plc
Compass: H1 results
Despite the management’s comments Compass has problems that go far beyond the one-off winding down of high margin military contracts with margins continuing to shrink this year.
Given the weak margins in the second half of last year, it is no surprise that Compass’ margins were well down on the (already bad) first half of last […]
Compass full year results
The full year results were similar to the first half, but margins were even worse. Revenues rose 8.3% and underlying (excluding goodwill and exceptionals) operating profit fell 7.7%. Reported EPS fell to zero, adjusted EPS fell 8.6% to 19.1p.
The fall in operating profit has come from Compass’s UK operations - underlying operating profit rose in […]
Compass: sale of travel operations
Compass plans to sell its travel concession operations. The businesses being exited have been perfectly successful but they are essentially retail operations so their sale does leave Compass more focused on its core contact catering business. The travel businesses range from motorway services to railway airport food kiosks.
The weakening of margins looks as though it […]
Compass: H1 results
Compass Group reported a 7.8% increase in turnover but a 2.9% decrease in underlying operating profits for the six months ended March 2005. Reported underlying profit declined by 8.6% to £192m compared to last year.
The company says revenue growth was due to new business wins, (partly driven by the continued trend towards outsourcing particularly in […]
Compass trading statement
Compass’s LFL turnover growth remained strong at 6% in the first six months (to March 2005) of the current financial year. Compass also warned that profits would be £15m lower in its Middle Eastern business and of extra costs of £9m in the UK. However these are comparatively small in the context of Compass’s […]
Compass
Contract caterer and motorway service station operator Compass has a good track record of growth which faltered in the second half of 2004. Compass’s recent problems included:
Costs incurred in switching work away from a distributor in “financial difficulties”
Start-up costs incurred on new contracts
Poor performance in continental Europe
Low margins on education authority contracts in […]
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