Compass lost 0.34% to 2,644 pence on the London stock exchange after presenting annual results in line with market expectations against a backdrop of cautious outlook. The British catering company reported recurring operating profit up 16.4% to almost $3 billion. The turnover of 42.2 billion dollars shows organic growth of 10.6% over the entire financial year, in line with market expectations.
Underlying operating cash flow increased 18.6% to $2.6 billion
Compass also indicated that it had to record a charge of $160 million in its annual accounts due to the abandonment of the deployment of new enterprise resource planning (ERP) software.
“The 2023/2024 financial year ended with solid operational and financial performances, with an acceleration in the signing of new contracts in net terms in the second half of the year, as planned,” underlined Dominic Blakemore, its managing director.
Looking ahead to the 2024-2025 financial year, Compass forecast slightly slower-than-expected 2025 earnings growth, close to 10%, based on organic business growth expected at over 7.5%. %, accompanied by a continuation of its operating margin.
“The operating profit growth target is a little low. However, we consider that the group is on the right track in response to new acquisitions in Europe,” underlines Jefferies, Buying the stock.
The group, which intends to withdraw from some smaller markets such as Mexico and Colombia, operates in 30 markets.
Belgium
