# Compass Group revenues above pre-COVID levels - Link: https://www.directorstalkinterviews.com/compass-group-revenues-above-pre-covid-levels/4121064126 - Published: 2022-05-11T08:04:09+01:00 - Author: Amilia Stone **[Compass Group plc](https://www.directorstalkinterviews.com/ftse-company/compass-group-plc/cpg.l)**( LON:CPG) has announced its half year results announcement for the six months ended 31 March 2022. | | | **Underlying^(1) results** HY 2022 | **Underlying^(1) results** HY 2021 | **Underlying^(1) results** Change | **Statutory results** HY 2022 | **Statutory results** HY 2021 | **Statutory results** Change | | Revenue | **£11.6bn** | £8.4bn^(2) | 37.9%^(3) | **£11.5bn** | £8.4bn | 36.3% | | Operating profit | **£673m** | £287m^(2) | 134.5%^(2) | **£638m** | £168m | 279.8% | | Operating margin | **5.8%** | 3.4% | 240bps | **5.5%** | 2.0% | 350bps | | Earnings per share | **26.9p** | 9.5p^(2) | 183.2%^(2) | **26.7p** | 5.6p | 376.8% | | Operating cash flow | **£557m** | £486m | 14.6% | **£663m** | £563m | 17.8% | | Free cash flow | **£360m** | £359m | 0.3% | ** ** | | | | Interim dividend per share | **9.4p** | – | | **9.4p** | – | | **Half year performance summary** •   Q2 underlying revenue at 99% of 2019 revenues with run rate now above our pre- COVID level^(2) •   Organic growth of 37.9% driven by strong performance in North America and Europe •   Excellent net new business growth, total in HY 2022 exceeds entire FY 2021 net new business •   Operating margin of 5.8%, an increase of 240bps on HY 2021 •   Leverage further reduced to 1.3x net debt/EBITDA, back within our target range •   Commencing a share buyback programme with up to £500m this calendar year **Operational highlights** •   Strong growth across all sectors, with notable volume recovery in Business & Industry and Education •   Record new business wins of £2.5bn^(4) over the last 12 months, with broad based growth across all regions •   Client retention rate at highest ever level of 95.8% •   Net M&A expenditure of £109m, further increasing our presence in delivered-in solutions **Strategy – positioning for the future** •   Capitalising on the significant market growth opportunities in first time outsourcing •   Continuing to strengthen our competitive advantage in vending, digital solutions and ESG •   Resilient business model helps mitigate heightened inflation – also a tailwind to outsourcing **Outlook** •   Increasing FY 2022 organic revenue guidance from 20 – 25% to around 30% •   Margin guidance remains unchanged; expect FY 2022 underlying operating margin to be over 6%, exiting the year at around 7% **Statutory results** •   Statutory revenue increased by 36.3% and operating profit was up by 279.8% 1.   Reconciliation of statutory to underlying results can be found in notes 2 ( segmental analysis) and 12 (non-GAAP measures) of the 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** > **Dominic Blakemore, Compass Group Chief Executive, said:** > “We continue to recover strongly from the pandemic and have achieved the important > milestone of revenue exceeding our pre-COVID level on a run rate basis. We have > seen a notable improvement in Business & Industry and Education as employees return > to the office and students to in-person learning. Net new business growth has > been excellent, particularly in North America and Europe where we have mobilised > a significant number of recent wins and benefited from our highest ever client > retention rate. > We are mindful of global inflationary pressures, which have been exacerbated by > the tragic events in Ukraine. Although we expect inflation to increase and continue > at a heightened level in the medium term, we have a resilient business model to > help mitigate this challenge. Inflation also provides a further impetus to outsourcing > as organisations seek savings and we are capturing this growth opportunity as > demonstrated by our record new business wins. > Given our strong first half performance and positive outlook, we are increasing > our full year organic revenue growth guidance from 20 – 25% to around 30%. Whilst > we are cautious about the inflationary environment, our margin guidance remains > unchanged, with full year underlying operating margin expected to be over 6%, > exiting the year at around 7%. > While investing in future growth, our increasing profit and cash flow continue > to reduce leverage, which is now back within our target range. Our strong balance > sheet and excellent growth prospects give us the confidence to commence a share > buyback programme with up to £500m during this calendar year. > 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.” **Results presentation today** A recording of the results presentation for investors and analysts will be available on the Company’s website today, Wednesday 11 May 2022, at 7.00am. There will be a Q&A session at 9.00am, accessible via the Company’s website, [www.compass-group.com](http://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 interim dividend | 9 June 2022 | | Record date for 2022 interim dividend | 10 June 2022 | | Last day for DRIP elections | 7 July 2022 | | Q3 Trading Update | 26 July 2022 | | 2022 interim dividend date for payment | 28 July 2022 | | Full year results | 22 November 2022 | Share on: