23rd Nov 2021 09:05
(Alliance News) - Contract caterer Compass Group PLC on Tuesday said it booked record new business wins and client retention in financial 2021 but still saw revenue drop in the year as a whole.
The Chertsey, Surrey-based firm reported that revenue was down 10% to GBP17.91 billion in the 12 months that ended September 30, from GBP19.94 billion the year before.
Compass, which was badly hurt by pandemic-related restrictions on activity, noted its underlying revenue recovered to 88% of 2019 revenue by the fourth quarter. Full-year underlying revenue was 77% of financial 2019's as economic reopenings boosted trading.
"Whilst we have made progress recovering revenue in the second half, driven by strong net new business, the pandemic continued to affect performance for the year. Our Healthcare & Senior Living and Defence, Offshore & Remote sectors performed well above pre-pandemic revenues, and we experienced a strong recovery in Education and Sports & Leisure in the fourth quarter. Revenues in our Business & Industry sector have remained subdued due to the delayed return to offices in our major markets," Compass explained.
Pretax profit doubled to GBP464 million from GBP210 million. Meanwhile operating profit jumped 85% to GBP545 million from GBP294 million. Operating cash flow saw a marked improvement in the year, up 39% at GBP1.17 billion.
Compass reinstated its dividend, declaring an annual payout of 14 pence per share.
Looking ahead, Compass expects financial 2022 organic revenue growth of between 20% and 25%. Progress is expected to be weighted towards the second half of the year due to "mobilisation costs and inflationary pressures" during the first half, the group cautioned.
"We are increasingly excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels, and rewarding shareholders with further returns," Chief Executive Dominic Blakemore said.
Compass shares were down 1.9% at 1,445.00 pence in London on Tuesday morning.
By Will Paige; [email protected]
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