Compass Group Won't Recommend Dividends Due to Coronavirus; CEO Takes 30% Salary Cut
April 23 2020 - 3:09AM
Dow Jones News
By Anthony O. Goriainoff
Compass Group PLC said Thursday that it won't recommend an
interim or final dividend for fiscal 2020, and that its chief
executive officer has temporarily reduced his salary by 30%, both
due to the coronavirus pandemic.
The U.K. catering contractor said the board and executive
committee have reduced their fees and salaries by 25%, and that it
expects a drop in first-half operating profit by 28% to 29% from
virus-related shutdowns. The company said its organic revenue
growth for the first half of 2020 was 1.6%, and that this was
within its expected 0% to 2% range.
The company said its net capital expenditure for the first half
was around 400 million pounds ($492.8 million) and that it expects
capex to be lower in the second half ending Sept. 30. The company
added that it has paused all mergers-and-acquisitions activity.
Compass Group said it is taking measures to strengthen
liquidity, and as a precautionary measure it is in discussion with
its U.S. private placement investor to obtain a waiver of its
covenant tests. The company said it has committed credit facilities
of GBP2.8 billion.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
April 23, 2020 02:54 ET (06:54 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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