Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Contract caterer group Compass said it expected fourth-quarter performance slightly ahead of its expectations, led by its sports and leisure business amid improved outdoor sports attendance, and strong customer spending.
Revenue performance in the fourth quarter is expected to improve to about 86% of 2019 revenues, slightly ahead of its guidance of 80-to-85%, the company said.
Underlying operating margin in the fourth quarter is expected to be around the mid-point of the guidance range of 5.5% to 6.0%.
Looking ahead, the company flagged a drag from adverse currency movements, forecasting foreign exchange translation to reduce 2020 reported revenue by around £943 million and operating profit by £39 million.
'However, we remain confident in our ability to return to a group underlying margin above 7% before we return to pre-COVID volumes,' it added.
For the full year 2021, revenue is expected to be about 76% of 2019, while underlying operating margin is expected to be about 4.4%.
'We will provide a further update on trading performance at our full year results on 23 November 2021 when we intend to provide further financial guidance,' it added.