Compass Group PLC (CPGl)
What is Compass Group?
Compass Group PLC is an international group engaged in catering and support services. Its staff work at schools, hospitals, care homes, offices, military bases and leisure facilities, providing catering, security, building maintenance, cleaning and procurement services. Compass says it sees food as its focus and core competence, while taking “a pragmatic and incremental approach” to support services, with strategies developed on a country by country basis.
In terms of its business model, Compass Group focuses on operational execution and seeks to deliver efficiencies through optimising its supply chain and managing its food and labour costs. These efficiencies enable the company to reinvest in growth opportunities and improve margins. Capital expenditure tends to be between 2.5 per cent and 3.0 per cent of revenue.
The group estimates that the addressable global food services market is currently worth around £200 billion, of which it has around a 10% share by sales – making it the leading global provider. Given that around 75% of the market is serviced by regional players or in-house providers, Compass believes it has a significant structural growth opportunity.
As of 5 February 2018, Compass Group was the 24th-largest company in the FTSE 100 index, with a market capitalisation of some £22.8 billion. You can see how the stock is doing by checking out our CPG chart.
Who are the key people at Compass Group?
Dominic Blakemore has been Group Chief Executive since January 2018, when he took over following the death of previous CEO Richard Cousins in a plane crash. Blakemore has extensive financial and corporate management experience, having previously served as a director of PricewaterhouseCoopers and as Chief Financial Officer of Igloo Foods Group Limited.
Other key figures to watch at Diageo include Group Finance Director Johnny Thomson, and Chris Garside, who is MD, UK & Ireland. Paul Walsh has been Chairman of Compass Group since February 2014.
What is the modern history of Compass Group?
Founded in the UK in 1941 as Factory Canteens Ltd, a series of mergers and acquisitions over the decades culminated in the formation of Compass Group in 1987. The following year, Compass Group PLC was listed on the London Stock Exchange. The group got bigger through more acquisitions, and in 1998 it was promoted to the FTSE 100 index.
By 2010 Compass had posted a group operating profit of over £1 billion for the first time. There were more acquisitions in food and support services in Brazil, Canada, France, India, the UK and US. In 2013, group operating margin exceeded 7 per cent for the first time, and a £500 million share buyback was announced. This was followed by a £1 billion return of cash in 2014, and a £1 billion special divided in 2017.
What are the latest developments at Compass Group?
Compass Group has been doing well in recent years, and achieved further progress across a range of metrics in 2017. Underlying revenue rose to £22.85 billion from £19.87 billion the previous year; underlying operating profit jumped to £1.7 billion from £1.4 billion the year before; and underlying basic earnings per share went up from 61.1p in 2016 to 72.3p in 2017.
To follow the latest ups and downs of the Compass Group share price, check out Capital.com.
Where does Compass Group operate?
From its original UK beginnings, Compass Group now has a presence across the world. It manages its business in three geographic regions – North America, Europe, and Rest of World. Compass currently operates in over 50 countries including Brazil, Argentina, Chile, South Africa, China, India and Australia. The group’s registered office is in Chertsey, England.
Where is Compass Group traded?
Compass Group shares are listed on the London Stock Exchange (LSE) and are a constituent of the FTSE 100 Index. Check out Capital.com for the latest CPG chart.