Compass Group PLC Coronavirus (COVID-19) Trading Update (3660G)
17 Marzo 2020 - 1:00AM
UK Regulatory
TIDMCPG
RNS Number : 3660G
Compass Group PLC
17 March 2020
Legal Entity Identifier (LEI): No. 2138008M6MH9OZ6U2T68
17 March 2020
Coronavirus (COVID-19) Trading Update
Compass Group provides a trading update in light of the rapidly
changing situation regarding COVID-19. Our priority remains the
health and safety of our employees, clients and consumers.
Compass' organic revenue growth for the five months ending 29
February 2020 was 6% as measures to contain the virus in our Asia
Pacific region did not materially impact our business. Our
operating margin during that five month period increased by around
10bps(1) with the benefits from the restructuring programme in
Europe coming through strongly.
However, the acceleration of containment measures adopted by
governments and clients in Continental Europe and North America
have affected our expectations for the Half Year. The vast majority
of our Sports & Leisure and Education business in these regions
has been closed, and our Business & Industry volumes are being
severely impacted. Our current expectations are that Half Year 2020
organic revenue growth should be between 0-2%. We are implementing
significant mitigation plans to manage our costs, and at this stage
expect the drop-through impact of the lost revenue to be between
25%-30% across the business. As a result, our operating profit for
Half Year 2020 will be GBP125 million - GBP225 million(2) lower
than expected.
We are working to protect our cash flow and are pro-actively
managing our capital expenditure and working capital. We have
significant headroom against a 4x net debt/ EBITDA covenant in our
US Private Placement Agreements and we have substantial liquidity
with a GBP2 billion committed Revolving Credit Facility(3) maturing
in 2024. Stable outlooks have recently been reconfirmed on our A/A3
credit ratings.
We continue to monitor the situation closely and will provide a
further update with our 2020 Half Year results announcement on 13
May 2020.
Enquiries
Investors Sandra Moura, Simon Bielecki & Agatha Donnelly +44 (0) 1932 573000
Press Tim Danaher & Fiona Micallef-Eynaud, Brunswick +44 (0) 207 404 5959
Website www.compass-group.com
1 Pre IFRS16
2 Exchange rates at 16 March 2020 9:00am
3 Which contains no financial covenants
Note to Editors
a) Compass Group PLC is the world's leading food service
company, which generated annual revenues of GBP25.2 billion in the
year to 30 September 2019. It operates in around 45 countries,
employs and engages over 600,000 people and serves over 5.5 billion
meals a year. The Company specialises in providing food and a range
of support services across the core sectors of Business &
Industry, Healthcare & Seniors, Education, Sports & Leisure
and Defence, Offshore & Remote, with an established brand
portfolio.
b) Organic revenue growth, a term used throughout the
announcement, is calculated by adjusting for acquisitions
(excluding current period acquisitions and including a full period
in respect of prior period acquisitions), disposals (excluded from
both periods) and exchange rate movements (translating the prior
period at current period exchange rates).
c) Forward looking statements
Certain information included in this announcement is
forward-looking and involves risks, assumptions and uncertainties
that could cause actual results to differ materially from those
expressed or implied by forward-looking statements. Forward-looking
statements cover all matters which are not historical facts and
include, without limitation, projections relating to results of
operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation,
discussions of expected future revenues, financing plans, expected
expenditures and divestments, risks associated with changes in
economic conditions, the strength of the foodservice and support
services markets in the jurisdictions in which the Group operates,
fluctuations in food and other product costs and prices and changes
in exchange and interest rates. Forward-looking statements can be
identified by the use of forward-looking terminology, including
terms such as "believes", "estimates", "anticipates", "expects",
"forecasts", "intends", "plans", "projects", "goal", "target",
"aim", "may", "will", "would", "could" or "should" or, in each
case, their negative or other variations or comparable terminology.
Forward-looking statements are not guarantees of future
performance. All forward-looking statements in this announcement
are based upon information known to the Company on the date of this
announcement. Accordingly, no assurance can be given that any
particular expectation will be met and readers are cautioned not to
place undue reliance on forward-looking statements, which speak
only at their respective dates. Additionally, forward-looking
statements regarding past trends or activities should not be taken
as a representation that such trends or activities will continue in
the future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), the Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Nothing in this
announcement shall exclude any liability under applicable laws that
cannot be excluded in accordance with such laws.
d) A copy of this release, together with all other recent
announcements and presentations can be found on Compass Group's
website at www.compass-group.com .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFLFSAVSIRLII
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March 17, 2020 03:00 ET (07:00 GMT)
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