Compass Group shares jump 5% on back of strong first quarter
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Compass Group shares jump 5% on back of strong first quarter

The world’s largest catering company, Compass Group, which provides services to public bodies (like the British National Health Service) as well as private companies, reported first quarter earnings for 2018 last week. The company said that revenue rose by 5.9% against the first quarter of 2017, thanks to a combination of new business and strong like-for like revenues. Investors liked what they saw, sending the share price up sharply on the day.

Compass Group’s share price jumped last week on the back of strong quarterly earnings

graph 1202 compass

SOURCE: Yahoo Finance

The company had a strange and difficult start to the year. Outgoing CEO Richard Cousins – long considered to be a major factor in the company’s success over the last decade – was tragically killed in a plane crash along with his family. This pushed new CEO, Compass-veteran Dominic Blakemore, into the role earlier than expected. Strong quarterly results are a welcome reminder that the company is on the right trajectory.

In a statement, Compass told the press: "We continue to focus on driving efficiencies throughout the business and expect modest margin progression on a full year basis, albeit second half weighted. In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue and margin growth."

The company also said it is “positive” about 2018, and expects organic growth to be “at least in the middle” of its target range of 4% to 6% for the full year.

Disclosure

Dominion holds Compass Group in its Global Trends Managed Fund. 

 


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.