Compass Group has provided an update in light of the disruption brought about by the COVID-19 pandemic.
In the last two weeks of March, the business performed in line with the expectations with organic revenue growth for Half Year 2020 was 1.6%, within the 0%-2% expected range.
Currently around 55% of the company's global business is closed due to country lockdowns.
The company is proactively mitigating its cost base by around £450m per month by taking a wide range of actions such as:
• Limited use of variable forms labour such as overtime, contractors, and temporary workers
• Redeployed or furloughed much of the staff
• Reduced salary, hours or furloughed for employees
• Chief Executive has temporarily reduced his salary by 30%, whilst the Group Board
and Executive Committee have temporarily reduced their fees and salaries by 25%
The drop through impact of lost revenues on HY operating profit was between 28%-29%, within the anticipated range of 25%-30%.
The group's healthcare teams around the world have mobilised resources at scale and with pace to allow us to support governments and Healthcare clients.
Compass is also preparing and delivering food to critical and essential workers, the elderly, vulnerable and those in financial distress, often working in partnership with grassroots support organisations.
Dominic Blakemore, Group Chief Executive, said, “I’d like to thank the tens of thousands of Compass colleagues around the world who are supporting clients and governments in providing critical and essential services.
'Their dedication, combined with the many initiatives around the world to prepare and distribute food to help those most in need, make me extremely proud of the contribution our people are making to the fight against COVID-19.
'We are managing the business to protect the interests of all our stakeholders. Compass is a strong, resilient organisation that is well-positioned to continue to support our colleagues, clients, consumers and the communities we serve during this challenging period.”