10 May 2023
If you are covering Compass’ results, please see the following comment from Mamta Valechha, equity research analyst at Quilter Cheviot:
"Compass reported a strong set of first half numbers this morning which are ahead of expectations. Organic revenue growth was up 25%, driven by positive pricing and volume growth, as well as new business wins which are currently tracking ahead of pre-pandemic levels at over 5%.
"Businesses continue to embrace outsourcing for the first time, and represented 45% of new business wins. This is a major positive for Compass as it should lead to higher organic growth in the future as these companies grow and outsource more.
"Compass is seeing growth across the board, with particularly strong performance in Business & Industry, as employees continued to return to the office, and Sports & Leisure, where participation rates improved. The pandemic recovery has truly taken shape now.
"On the back of these strong results and outsourcing trends, Compass raised its expectations, announced a share buyback and increased the dividend by 60% - all pointing to positive momentum for the company.
"The outsourcing market remains very attractive, driven by complexities such as increased regulation, sustainability, changing client dietary expectations and inflation, all of which are here today and Compass is primed to take advantage of."
