Compass will miss out on £225m profit due to coronavirus
Compass' organic revenue growth was 6% for the five months ending 29 February 2020 but the impact of coronavirus means it will miss out on £225m in profit.
In the trading update in response to covid-19 the world's largest contract caterer reported that measures to contain the virus in the Asia Pacific region did not have a material impact on its business there.
However, the acceleration of coronavirus containment measures adopted by governments and clients in continental Europe and North America has meant most of its sport and leisure and education business in these regions have been closed.
It expects lost revenue to be between 25%-30% across the business with operating profit for the half year to be £125m, £225m lower than it had expected.
It will release its 2020 half year results on 13 May.
Compass Group generated annual revenues of £25.2b in the year to 30 September 2019. It operates in around 45 countries, employs and engages over 600,000 people. It specialises in providing food and support services.
'Softening' in B&I and 'less-favourable' sporting calendar stall European growth for Compass
