Compass Group 4Q Organic Revenue Fell 36%; Sees $128.6 Million Hit
September 30 2020 - 2:44AM
Dow Jones News
By Adria Calatayud
Compass Group PLC said Wednesday that organic revenue fell
around 36% for the fourth quarter of fiscal 2020, and that it
expects to take a 100 million-pound ($128.6 million) hit from
contract assets due to the coronavirus pandemic.
The U.K. catering contractor said organic revenue for the year
to Sept. 30 declined by around 19%, although its fourth-quarter
performance improved as clients in business-and-industry and
education began to return to offices and schools in its main
markets.
The FTSE-100 company said it expects a negative underlying
operating-profit margin of around 3% for the fourth quarter,
including impairments on contract assets. Excluding those
impairments, the company's fourth-quarter operating margin is
expected to be breakeven, it said.
For fiscal 2020 as a whole, Compass expects an underlying
operating margin of around 3%.
Compass said the pace at which its revenue and margin will
recover remains unclear, especially given the possible increase in
lockdown measures in the northern hemisphere through the winter
months.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
September 30, 2020 02:29 ET (06:29 GMT)
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