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Compass Group FY21 Profit Surges, Reinstates Dividend; Sees Organic Revenue Growth In FY22

Food service company Compass Group (CPG.L,CMPGF.PK) reported Tuesday that its fiscal 2021 profit before tax climbed to 464 million pounds from 210 million pounds last year.

Earnings per share grew 150 percent to 20 pence from 8 pence a year ago.

Underlying profit before tax was 698 million pounds, compared to 427 million pounds last year. Underlying earnings per share were 29.5 pence, compared to 17.1 pence a year ago.

Operating profit increased by 85.4 percent to 545 million pounds reflecting actions taken to control the controllable, including resizing the cost base and improved cost control.

Revenue, meanwhile, fell 10.2 percent to 17.9 billion pounds from 19.9 billion pounds a year ago. Underlying revenues declined 6.3 percent.

In the fourth quarter, organic revenue climbed 32.9 percent, while it fell 6.3 percent in the full year.

Further, the company reinstated the dividend with a payout policy of about 50 percent of underlying earnings.

The Board has proposed a final dividend of 14.0 pence per share for FY21, payable in February 2022.

Looking ahead, in the short term, the company expects fiscal 2022 organic revenue growth to be 20 percent-25 percent.

Full year underlying margin is anticipated to be over 6 percent. With ongoing mobilisation costs and inflationary pressure, further improvement will be weighted towards the second half of the year as the company returns to underlying margin of around 7 percent by year end.

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