Compass Group (CPG)

[idpickering]

Half-year results announcement for the six months ended 31 March 2023.

Strong half-year results, raising FY 2023 guidance and announcing
a further share buyback of up to £750m

Half-year highlights

· Strong organic revenue growth of 25% with excellent net new business of 5.2%

- First-time outsourcing trends continue, accounting for c.45% of new business wins

- Balanced growth across all regions with very strong performance in Europe

- Maintaining strong client retention rate

· Operating profit over £1bn and operating profit margin of 6.6%, up 80bps

· Strong cash generation, net debt to EBITDA reduced to 1.1x

· Further share buyback of up to £750m to be completed this calendar year

Strategic priorities for growth - capturing the outsourcing market opportunities

· Sustaining the outperformance in North America

· Building a track record of growth in Europe and Rest of World

· Exited six tail countries as we continue to reshape our portfolio to focus on growth opportunities in attractive markets

And later;

Dividends

The interim dividend of 15.0p per share (2022: 9.4p per share), £262m in aggregate1, is payable on 27 July 2023 to shareholders on the register at the close of business on 9 June 2023. The dividend was approved by the Board after the balance sheet date and, therefore, it has not been reflected as a liability in the interim financial statements.

https://www.investegate.co.uk/announcement/7519452

Ian (No holding).

[idpickering]

SHARE BUYBACK PROGRAMME.

Further to the half year results announcement made on 10 May 2023, Compass Group PLC (the "Company") announces that the programme to purchase up to £750 million of the Company's ordinary shares of 11 1/20 pence each ("Ordinary Shares") will commence on 12 May 2023 and will be completed this calendar year (the "Programme").

The purpose of the Programme is to reduce the share capital of the Company by returning surplus capital to shareholders.

https://www.investegate.co.uk/announcement/7523979

Ian (No holding).

[idpickering]

Share Buyback Programme.

Compass Group PLC (the "Company") announces that on 21 July 2023 it entered into a non-discretionary agreement with Barclays Capital Securities Limited ("Barclays") to enable the purchase of up to £500 million of the Company's ordinary shares of 11 1/20 pence each ("Ordinary Shares") between 24 July 2023 and 14 November 2023. This follows the successful completion of a £250 million non-discretionary programme on 3 July 2023. Both programmes form the Company's £750 million share buyback programme announced with its half year results on 10 May 2023 (the "Programme").

The purpose of the Programme is to reduce the share capital of the Company by returning surplus capital to shareholders.

The Programme will be conducted within certain pre-set parameters. The Company's shareholders generally authorised it to purchase up to a maximum of 175,720,000 Ordinary Shares at its 2023 Annual General Meeting held on 9 February 2023, subject to certain limitations (the "General Authority"). The aggregate number of Ordinary Shares acquired by the Company pursuant to the Programme shall not exceed the maximum number of Ordinary Shares which the Company is authorised to purchase pursuant to the General Authority.

https://www.investegate.co.uk/announcem ... e-/7649584

Ian (No holding).

[idpickering]

Third Quarter Trading Update.

https://www.investegate.co.uk/announcem ... te/7652280

Ian.

[idpickering]

Director Changes.

Compass Group PLC today announces that, after nearly 40 years of dedicated service, Gary Green has informed the Board that he wishes to retire as Group Chief Operating Officer (COO), North America and as a director of Compass Group PLC. He will step down from the Board on 30 November 2023, however, he remains available to Compass Group until 31 March 2024.

Palmer Brown will assume the role of Group Chief Operating Officer, North America with effect from
1 December 2023 and will remain a director of the Board. Palmer will hand over his responsibilities as Group Chief Financial Officer (CFO) to Petros Parras, current Regional Finance Director, Europe Middle East (EME). Palmer Brown joined the US business 22 years ago and has spent most of his working career in North America in a variety of senior finance, strategy, and legal roles. He has been responsible for many strategic acquisitions and disposals for the Group and served as Group Commercial Director before becoming Group Chief Financial Officer in 2021.

https://www.investegate.co.uk/announcem ... es/7770888

Ian (No holding).

[idpickering]

Full-year results.

Underlying operating profit growth of 30%2 delivered through:

• Organic revenue growth of 19%, balanced across all regions and sectors.

• Operating margin of 6.8%, up 60bps year on year.

Capitalising on significant market opportunities with strong focus on growth:

• Signed £2.7bn4 of new business, with first-time outsourcing accounting for c.50%.

• Mobilised net new business of 4.6%, with strong client retention rate of 96.5%.

Underlying operating cash generation of £1.8bn supports strong balance sheet and flexibility for capital allocation:

• Invested £1.2bn in the business in capex (2.9% of underlying revenue) and M&A (net spend c.£300m).

• Returning surplus cash through a further share buyback of up to $500m, to complete in 2024 subject to M&A activity.

Strategic priorities:

• Focusing on significant structural growth opportunities in core markets; exited nine tail countries.

• Evolving our existing operating model to further enhance our competitive advantages.

• Investing in future sources of growth through capex and M&A to enhance our capability and expertise, including agreement to acquire Hofmann Menü-Manufaktur GmbH in Germany.

And later;

Dividends

A final dividend in respect of 2023 of 28.1p per share, £482m in aggregate1, has been proposed, giving a total dividend in respect of 2023 of 43.1p per share (2022: 31.5p per share). The proposed final dividend is subject to approval by shareholders at the Annual General Meeting to be held on 8 February 2024.

https://www.investegate.co.uk/announcem ... ts/7890475

Ian (No holding).

[Bouleversee]

Thanks, Ian. Compass is one of my relatively successful holdings and it shows how little I understand the stock market as I thought these results were pretty good, especially the increased dividend so I was surprised to see the s.p. was down 4.35% so far today.

[idpickering]

Thanks, Ian. Compass is one of my relatively successful holdings and it shows how little I understand the stock market as I thought these results were pretty good, especially the increased dividend so I was surprised to see the s.p. was down 4.35% so far today.

You're welcome Lorna. I hope you're well. CPG are down 3.9% as I type, in a weak overall FTSE100 though to be fair.

Ian.

[idpickering]

Share Buyback.

Compass Group PLC (the "Company") announces that on 1 December 2023 it entered into a non-discretionary agreement with BNP Paribas Arbitrage S.N.C. ("BNPP") to enable the purchase of up to a market equivalent of $250 million (being £197.34 million as at 1 December 2023) of the Company's ordinary shares of 11 1/20 pence each ("Ordinary Shares") between 4 December 2023 and 8 May 2024 at the latest (the "H1 Buyback"). The H1 Buyback is the initial stage of the Company's $500 million share buyback announced with its full-year results on 20 November 2023 to be completed in 2024 subject to M&A activity.

The purpose of the H1 Buyback is to reduce the share capital of the Company by returning surplus capital to shareholders.

https://www.investegate.co.uk/announcem ... k-/7918674

Ian (No holding).

[idpickering]

Proposed acquisition of CH&CO

Compass Group PLC (LSE: CPG), a leading global food service company, has today signed an agreement to acquire CH&CO, a provider of premium contract and hospitality services in the UK and Ireland for an initial enterprise value of £475m/$600m1.

https://www.investegate.co.uk/announcem ... co/7999477

Ian.

[idpickering]

Half Year Results Announcement

Strong underlying operating profit growth of 18.7%3 delivered through:

• Balanced organic revenue growth of 11.2% and underlying operating margin up 50bps year on year to 7.1%.

Invested in growth, further refined our portfolio and returned surplus capital to shareholders:

• Invested $693m in capex (3.3% of underlying revenue) supporting growth and generating strong returns.

• Spent $373m on M&A, including the acquisition of HOFMANNs. CH&CO completed in April 2024.

• Exited four countries during the period and agreed to exit Brazil subject to regulatory approval.

• Completed half of the $500m share buyback announced in November 2023.

https://www.investegate.co.uk/announcem ... nt/8197008

Ian (No holding).

[idpickering]

SHARE BUYBACK.

Compass Group PLC (the "Company") announces that on 20 June 2024 it entered into a non-discretionary agreement with J.P. Morgan Securities plc ("JPM") to enable the purchase of up to a market equivalent of $250 million (being £196.7 million as at 18 June 2024) of the Company's ordinary shares of 11 1/20 pence each ("Ordinary Shares") between 21 June 2024 and 17 December 2024 at the latest (the "H2 Buyback"). The H2 Buyback is the second, and final, stage of the Company's $500 million share buyback announced with its full-year results on 20 November 2023.

The purpose of the H2 Buyback is to reduce the share capital of the Company by returning surplus capital to shareholders.

https://www.investegate.co.uk/announcem ... ck/8270967

Ian (No holding).

[idpickering]

Trading Statement.

23 July 2024 - Compass Group PLC, a global leader in food services, today announces trading results for the third quarter ended 30 June 2024.

Group and regional performance

The Group delivered another strong quarter with organic revenue growth of 10.3%. All regions continue to perform well, and industry trends remain strong, providing Compass with an exciting pipeline of new business opportunities.

https://www.investegate.co.uk/announcem ... nt/8324533

Ian (No holding).