# Compass Group achieve strong organic revenue growth of 37.5%, to £25.8bn - Link: https://www.directorstalkinterviews.com/compass-group-achieve-strong-organic-revenue-growth-of-37.5-to-25.8bn/4121091082 - Published: 2022-11-21T07:28:47+00:00 - Author: Amilia Stone **[Compass Group plc](https://www.directorstalkinterviews.com/ftse-company/compass-group-plc/cpg.l)**( LON:CPG) has announced its full year results announcement for the year ended 30 September 2022. | | Underlying^(1) results 2022 | Underlying^(1) results2021 | Underlying^(1) resultsChange | Statutory results2022 | Statutory results2021 | Statutory resultsChange | | Revenue | £25.8bn | £18.7bn^(2) |  37.5%^(3) | £25.5bn | £17.9bn |  42.5% | | Operating profit | £1,590m | £848m^(2) | 87.5%^(2) | £1,500m | £545m | 175.2% | | Operating margin | 6.2% | 4.5% | 170bps | 5.9% | 3.0% | 290bps | | Earnings per share | 63.0p | 30.9p^(2) | 103.9%^(2) | 62.6p | 20.0p | 213.0% | | Operating cash flow | £1,351m | £1,004m | 34.6% | £1,596m | £1,171m | 36.3% | | Free cash flow | £890m | £660m | 34.8% | | | | | Annual dividend per share | 31.5p | 14.0p | 125.0% | 31.5p | 14.0p | 125.0% | **Performance highlights** •    Strong organic revenue growth of 37.5%. In Q4 2022, Group was at 116% of 2019 revenues with Business & Industry at 106% •    Underlying operating margin improved by 170bps year on year to 6.2%, with H2 2022 at 6.5% •    Excellent net new business of 7.5% (5.7% rebased to 2019, above historical rate of 3%) •    Client retention rate up by 100bps year on year to a new record of 96.4% •    New business wins increased to £2.5bn^(4), with strong contributions from North America and Europe •    First-time outsourcing market remains buoyant, accounting for c.45% of new business wins •    Investing in the business: Capex 2.7% of underlying revenue and net M&A expenditure of £268m •    Leverage of 1.3x net debt/EBITDA, within our target range of 1x-1.5x **Strategy** •    Continuing to capitalise on the significant structural growth opportunities and the acceleration of outsourcing •    Ongoing investment in our market-leading digital and ESG capabilities •    Successfully issued first sustainable bonds to help deliver climate net zero by 2050 **Shareholder returns** •    Annual dividend per share increased to 31.5p •    Completed initial £500m share buyback, further £250m announced today to be completed in H1 2023 **2023 outlook** •    Constant-currency underlying operating profit growth expected to be above 20%, delivered through: –   Organic revenue growth of around 15%, weighted towards H1 2023 –   Underlying operating margin above 6.5% **Statutory results** •    Statutory revenue increased by 42.5% •    Statutory operating profit up by 175.2%. The prior year included £157m of COVID- 19 resizing costs _1.    Reconciliation of statutory to underlying results can be found in notes 2( segmental analysis) and 13 (non-GAAP measures) to the consolidated financial statements._ _2.    Measured on a constant-currency basis._ _3.    Organic revenue change._ _4.    Annual revenue of new business wins in the last 12 months._ **Business review** **Results presentation today** A recording of the results presentation for investors and analysts will be available on the Company’s website today, Monday 21 November 2022, at 7.00 a.m. There will be a live question and answer session at 9.00 a.m., accessible via the Company’s website, www.compass-group.com, and you will be able to participate by dialing: | UK Toll Number: | +44 (0) 33 0551 0200 | | UK Toll-Free Number: | 0808 109 0700 | | | | | US Toll Number: | +1 212 999 6659 | | US Toll-Free Number: | 1 866 966 5335 | | | | | Participant PIN Code: | Compass | _Please connect to the call at least 10-15 minutes prior to the start time._ **Financial calendar** | Ex-dividend date for 2022 final dividend | Thursday 19 January 2023 | | Record date for 2022 final dividend | Friday 20 January 2023 | | Q1 Trading Update / Annual General Meeting | Thursday 9 February 2023 | | Last day for DRIP elections | Thursday 9 February 2023 | | 2022 final dividend date for payment | Thursday 2 March 2023 | | Half-year results | Wednesday 10 May 2023 | > **Dominic Blakemore, Compass Group Chief Executive, said:** > “The Group’s performance surpassed our expectations both in terms of net new business > growth and base volume recovery, with Business & Industry now operating above > its pre-pandemic revenues. The strong growth trends seen in the first half have > continued, with net new business accelerating through the year in all our regions. > Our clients are continuing to face operational complexities and inflationary pressures, > which are driving increased outsourcing, and we are successfully capitalising > on the resulting growth opportunities. > North America continues to perform strongly, and we are particularly pleased with > our progress in Europe, which is benefiting from an increased focus on growth > and retention, supported by investments in our people, brands, and processes. > Thanks to the hard work of our teams across the world, Compass has emerged from > the pandemic as a stronger and more resilient business, reflecting our clear strategy > and market-leading growth enablers. While the macroeconomic environment is uncertain, > we are working in partnership with our clients to mitigate inflationary pressures > and supporting our colleagues during this challenging period by offering financial > support and other benefits. > For 2023, we expect underlying operating profit growth to be above 20% on a constant- > currency basis, to be delivered through organic revenue growth of around 15%, > weighted towards the first half of the year, and underlying operating margin above > 6.5%. Having completed the previously announced share buyback of £500m, we have > announced a further share buyback of up to £250m, taking the total to £750m. > Looking further ahead, we remain excited about the significant structural growth > opportunities globally, leading to the potential for revenue and profit growth > above historical rates, returning margin to pre-pandemic levels and rewarding > shareholders with further returns.” Share on: