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Interim Results

Compass £1bn special divi after good first half

10 May 2017 07:31

Compass has proposed a £1bn special dividend after a good first half.

The group said organic revenue grew by 3.6% and operating margins improved by 20 basis points and its full year expectations remained positive and unchanged.

Statutory results showed revenues up 20.3% at £11.5bnm in the six months to the end of March with operating profits up 24.6% at £877m and margins rising to 7.6% from 7.4%.

On an underlying basis, operating profits rose by 5.2% to £894m.

Group chief executive Richard Cousins said: "Compass had a good six months, with the business performing as expected.

"North America continues to deliver excellent growth and trends in Europe are improving. In Rest of World, reasonable growth in Business & Industry, Healthcare and Education was offset by ongoing weakness in Brazil and our Offshore & Remote sector.

"We continue to drive operating efficiencies around the business which, combined with the end of the restructuring in our Offshore and Remote business, resulted in margin improvement of 20bps in the period.

"Given our excellent cash generation and the strength of the business, we are announcing a £1 billion special dividend.

"This reflects our commitment to return surplus cash to shareholders whilst maintaining an efficient balance sheet.

"Our expectations for FY 2017 are positive and unchanged, with growth weighted to the second half.

"Our pipeline of new contracts is encouraging and our focus on organic growth, efficiencies and cash gives us confidence in achieving another year of delivery.

"In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue growth, margin improvement, as well as continued returns to shareholders."

Story provided by StockMarketWire.com

Related Company: CPG

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