Compass Group Fiscal Year 2020 Profit Falls on Lower Revenue
By Matteo Castia
Compass Group PLC on Tuesday reported a fall in pretax profit
for fiscal 2020 on lower revenue, as the coronavirus pandemic has
severely hurt the business in the second quarter.
The U.K. catering contractor made a pretax profit of 210 million
pounds ($279.8 million) for the year ended Sept. 30, compared with
a restated GBP1.49 billion in fiscal 2019.
Revenue fell to GBP19.94 billion from GBP24.88 billion a year
earlier. Coronavirus restrictions reduced volumes in business and
industry, education, and sports and leisure in all regions, the
As anticipated in April, the board declared no final dividend
for the year in an effort to preserve resources amid the
coronavirus pandemic. "The board will keep future dividends under
review and will restart payments when it is considered appropriate
to do so," the company said Tuesday.
Underlying operating margin was 2.9%, in line with the company's
guidance for around 3%. Compass said it expects underlying
operating margin for the first quarter of fiscal 2021 to be around
The company said it expects the figure to return to
profitability in the fourth quarter of fiscal 2021.
Write to Matteo Castia at email@example.com
(END) Dow Jones Newswires
November 24, 2020 02:32 ET (07:32 GMT)
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