Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Compass Group PLC    CPG   GB00BD6K4575

COMPASS GROUP PLC

(CPG)
  Report
Real-time Estimate Quote. Real-time Estimate CHI-X - 07/15 11:30:00 am
1188.25 GBX   +7.88%
07/06COMPASS : Sodexo sees 3 billion euro shortfall in second-half as coronavirus remains strong
RE
06/29COMPASS : Conference Call
PU
06/04UK firms cut borrowing again through BoE COVID facility
RE
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Compass may raise more funds as coronavirus crisis roils catering industry

share with twitter share with LinkedIn share with facebook
share via e-mail
05/18/2020 | 02:49pm EDT

By Yadarisa Shabong and Abhinav Ramnarayan

Compass Group may announce plans to raise more funds on Wednesday as the world's largest caterer seeks to ride out the coronavirus crisis with an eye on potential small acquisitions and growing non-core businesses like cleaning, analysts say.

Compass, which normally feeds hundreds of thousands of school kids, office workers and prisoners daily, has seen 55% of its business close due to lockdowns around the world to halt the spread of the virus.

Longer periods of physical distancing and working from home also threaten to radically reduce the numbers of customers its 600,000 staff service on a day-to-day basis even as stay-at-home orders are being lifted.

The company's shares have sunk in response, by nearly 40% since the start of the year, but analysts say Compass may be able to grow market share while thousands of smaller rivals struggle. Bloomberg on Friday reported https://www.bloomberg.com/news/articles/2020-05-15/catering-giant-compass-is-said-to-consider-2-billion-share-sale Compass was considering a $2 billion capital raise.

Compass in its response said no decision had been made on such a deal, except that it was looking at options to increase its resilience, invest in long-term growth prospects and consolidate its position as an industry leader.

"This is far from an outright denial and certainly seems a change in message since the 23 April release, which set out a strong liquidity position," said Bernstein analyst Richard Clarke.

"We could see that potentially Compass sees some M&A opportunities."

Clarke pointed to the possibility of the company buying a regional catering competitor, or investing in higher-margin services stemming from the COVID-19 pandemic, such as screening of employees or deep cleaning.

Shares in the company closed nearly 6% higher on Monday after Friday's reports and other analysts sounded positive about the raise, worth about 10% of Compass' current share capital.

"If this were done to fund attractive M&A it could be taken positively," said Morgan Stanley's Jamie Rollo.

Jefferies' Kean Marden called it "prudent".

For now, Compass' results remain under the pressure that saw it scrap its dividend and draw credit from the government's COVID Corporate Finance Facility.

In March, it warned first-half profits would be 125 million to 225 million pounds ($274.32 million) lower than expected due to closure of schools, businesses and sports events in Europe and North America.

Rival Sodexo in April envisaged a revenue slide of between 2.4 billion and 2.8 billion euros ($3.06 billion), with impact on underlying profit likely to be a quarter of the revenue hit in the second half of 2020.

($1 = 0.9157 euros)

($1 = 0.8202 pounds)

(This story corrects to say stay-at-home orders are being lifted, not risen, in paragraph 3.)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Patrick Graham and Shinjini Ganguli)

Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. 8.32% 6.25 Delayed Quote.4.91%
BYD COMPANY LIMITED -4.30% 79 End-of-day quote.103.35%
CHANGE INC. 2.92% 8110 End-of-day quote.178.89%
COMPASS GROUP PLC 7.54% 1184.5 Delayed Quote.-41.72%
JUST GROUP PLC -3.32% 49.84 Delayed Quote.-34.75%
MORGAN STANLEY 1.68% 51.35 Delayed Quote.-1.21%
SODEXO 4.72% 64.78 Real-time Quote.-41.45%
THE NEW HOME COMPANY INC. 0.30% 3.4 Delayed Quote.-27.25%
WILL GROUP, INC. 2.87% 646 End-of-day quote.-48.40%
WORLD CO., LTD. 2.05% 1493 End-of-day quote.-44.52%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on COMPASS GROUP PLC
07/06COMPASS : Sodexo sees 3 billion euro shortfall in second-half as coronavirus rem..
RE
06/29COMPASS : Conference Call
PU
06/04UK firms cut borrowing again through BoE COVID facility
RE
05/26Supercar group McLaren to cut 1,200 jobs across group amid pandemic
RE
05/20GLOBAL MARKETS LIVE: Better-than-expected results for Lowe’s and Target
05/19Compass raises 2 billion pounds as pace of recovery in question
RE
05/19Compass Group Issues 195.7 Million New Shares, Raising GBP2 Billion in Placin..
DJ
05/19UK mid-caps rise for third day on bets of recovery
RE
05/19COMPASS : Placing Offer
PU
05/19Compass Group 1st Half 2020 Pretax Profit Fell; Withdraws Full-Year Guidance
DJ
More news
Financials
Sales 2020 20 461 M 25 756 M 25 756 M
Net income 2020 280 M 353 M 353 M
Net Debt 2020 2 862 M 3 603 M 3 603 M
P/E ratio 2020 76,1x
Yield 2020 0,12%
Capitalization 21 129 M 26 630 M 26 597 M
EV / Sales 2019
EV / Sales 2020 1,17x
Nbr of Employees 600 000
Free-Float 99,6%
Chart COMPASS GROUP PLC
Duration : Period :
Compass Group PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends COMPASS GROUP PLC
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 1 275,14 GBX
Last Close Price 11,85 GBX
Spread / Highest target 15 096%
Spread / Average Target 10 665%
Spread / Lowest Target 5 904%
EPS Revisions
Managers
NameTitle
Dominic Blakemore Chief Executive Officer & Executive Director
Karen Witts Chief Financial Officer & Director
Gary R. Green Executive Director & CEO-North America Region
John George Bason Senior Independent Director
Carol Ann Arrowsmith Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
COMPASS GROUP PLC-41.72%24 627
STARBUCKS CORPORATION-17.37%84 956
SODEXO-41.45%10 268
DARDEN RESTAURANTS, INC.-33.13%9 472
JOLLIBEE FOODS CORPORATION-36.94%3 131
PAPA JOHN'S INTERNATIONAL, INC.44.07%2 954