Catering group Compass sounds optimistic note despite pandemic eating into sales and profit
Catering company Compass Group suffered a sharp drop in revenue and profit in the first half of the year but sounded a positive note on its future prospects this morning.
Compass’ revenue dropped 32.4 per cent from £12.48bn to £8.44bn in the six months ended 31 March due to the impact of coronavirus restrictions on its key client base such as education, corporate and sport settings.
Operating profit was down 78.3 per cent from £775m to £168m due to restrictions and pandemic-related costs, such as resizing the business and increasing labour flexibility.
It booked an additional £78m Covid-19 resizing charge during the period.
However, Compass’ management were upbeat this morning about the future of the company.
The company said the pandemic has been an “accelerant for new digital and culinary initiatives” and that it is now helping clients prepare to reopen.
“Clients are increasingly looking to us as an integral service partner at the heart of their reopening and recovery plans,” Compass said in its half-year results statement.
“These factors, combined with greater in unit labour flexibility and lower above unit costs, are evolving our operating model and improving the quality of the business.”