Compass Company profile
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Compass Group plc (CPG) is a multinational corporation providing food and support services to companies around the world. Headquartered in the United Kingdom, operations are divided into five sectors: Business and Industry; Healthcare and Seniors; Education; Sports and Leisure; and Defence, Offshore and Remote. Clients of Compass Group include household names, such as Alphabet’s Google (GOOGL), Microsoft (MSFT), Nike (NKE) and Coca Cola (KO).
This FTSE 100 Index (UK100) company is listed on the London Stock Exchange (LSE) under the ticker symbol CPG.
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Compass Group’s origins can be traced back to 1941, when businessman Jack Bateman founded catering company ‘Factory Canteens Limited’, soon renamed as ‘Bateman Catering’. The company was acquired by Grand Metropolitan plc in 1967. Compass Group was formed in 1987, following a management buy-out from Grand Metropolitan.
The company grew rapidly in the 1990s and 2000s through a range of acquisitions, taking over the likes of Travellers Fare, Eurest International and Morrison Management Specialists. Compass Group merged with media company Granada in 2000, with the intention of separating Granada’s media division and incorporating Granada’s catering business under the Compass name. The companies demerged in 2001, forming Compass and Granada Media. By 2005, Compass Group had become the world’s largest catering company. Today it has operations in 45 countries, employs 500,000 people and serves 5.5 billion meals annually at 55,000 client locations across the globe.
In FY 2020, after a strong Q1 in which Compass reported revenue growth of 5.3%, the closure of non-essential businesses in response to the Covid-19 pandemic had huge implications for the business. For the full-year ending 30 September 2020, the company reported total revenues of £20.2bn compared to £24.8bn for 2019, while operating profit was £561m compared to £1.9bn in 2019, a decrease of 69%.
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Compass stock hit a record high of £21.04 a share on 27 September 27 2019. It then began to trend down, falling to £18.38 by 8 December 2019. Share price then began to rise, reaching £19.53 a share on 16 February 2020, only to lose most of its gains in the following months as a result of the Covid-19 pandemic. On 16 July 2020, the CPG share price closed the trading session at £10.50, a fall of more than 46% from its February high. That fall is closely linked to the closure of non-essential businesses implemented in response to the global pandemic. As restrictions have eased, Compass stock has recovered some losses, closing at £16.08 a share on 28 May 2021.
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