Compass Group sees “good six months”, feels generous
Compass Group, the British multinational cleaning and catering company, is making so much money, it’s decided to give some beck to investors. That was the headline message from the group’s interim report, released yesterday. Citing a “good six months” for the company, CEO Richard Cousins announced a £1 billion special dividend for investors. Cash generation is a significant part of Compass Group’s business model, and it definitely delivered over the six months to 31 March this year: the company posted revenue of £11.5 billion against revenue of £9.5 billion from the same period in 2016.
Compass Group’s share price is up 11% over the past three months
SOURCE: Yahoo Finance
"Compass had a good six months, with the business performing as expected. North America continues to deliver excellent growth and trends in Europe are improving. In the rest of world, reasonable growth in business and industry, healthcare and education was offset by ongoing weakness in Brazil and our offshore and remote sector.
"Given our excellent cash generation and the strength of the business, we are announcing a £1bn special dividend. This reflects our commitment to return surplus cash to shareholders whilst maintaining an efficient balance sheet."
On other metrics, the group largely met expectations, seeing profit rise from £666 million to £831 million, and an increase in interim dividend of 5.7%.
Dominion holds Compass Group in its Global Trends Managed Fund.
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