Compass (CPG) revenue dips but cost controls help profits
08:39, 23 November 2021
Compass, the UK-based food services company, published its full-year results today. The report saw revenue fall by over 10% from £19.9bn to £17.9bn ($26.6bn) in the 12 months to September.
As a result of improved cost controls, however, statutory operating profit increased by around 85% to £545m.
The group revealed a full-year underlying margin of 4.5%, compared to 2.9% in 2020 and earnings per share were 29.5p compared to 17.1p.
Compass announced it was reinstating its dividend with a payout policy of around 50% of underlying earnings.
In terms of the outlook for the business during the 2022 financial year, Compass expects organic revenue growth to be 20%–25%. While the full-year underlying operating margin is anticipated to be over 6%.
Strong cash flow
Commenting on the latest figures, Dominic Blakemore, the group’s CEO, said: “Our strong financial recovery in 2021, including record new business wins and client retention, is a credit to our teams’ exceptional resilience, dedication and expertise in extraordinary circumstances. We are pleased to be reinstating the dividend, reflecting our strong cash flow and increasing confidence in the group’s performance.”
He added: “Looking ahead, we are now focused on growth, driven by encouraging market trends and our ability to provide more bespoke, digital and sustainable solutions that meet the evolving needs of clients in a post-pandemic world.
“The tailwinds from first time outsourcing continue and, combined with our differentiated operating model and investment opportunities, we are in a strong position for growth.”
There was a small movement in the Compass stock price in early trading in London – it was down around 1% to £14.53.