Catering giant Compass to demonstrate appetite for recovery with latest figures

Compass Group, the world’s largest catering company, will this week look to make assurances that its recovery remains on track after the pandemic ate into revenues.

Chef and culinary ambassador Tom Kitchin with Compass Scotland managing director David Hay. The catering firm earlier this year pledged to create 100 apprenticeship opportunities in Scotland. Picture: @Schnappsphoto

Revenues contracted by some 31 per cent in the six months ending March 31, with its sports arm the worst hit.

But compared with a 33.7 per cent fall in revenue in the last quarter of 2020, the first three months of 2021 fared better, with a 28 per cent drop between January and March.

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Despite these hits, the company’s operating margin rose 3.4 per cent.

Analysts will be looking closely at this week’s full-year results and any commentary on current trading.

Matthew Britzman, equity analyst at Hargreaves Lansdown, said: “Considering catering companies were acutely hit by lockdowns, Compass’ recovery efforts can’t be knocked.

“The market has high expectations for the group’s continued recovery. Any unexpected bumps in the road, or a less-than-perfect outlook statement could cause some short-term volatility.”

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