In a statement, the catering giant said it is still working in all its healthcare, defence, offshore and remote segments and part of its education, business and industry locations, but sports and leisure activity is completely halted.
The FTSE 100-listed group added that it is planning monthly cost savings of £450mln by hiring workers on temporary salaries, furloughing or redeploying existing staff and reducing salaries across the workforce.
As of March 31, Compass had net debt of £4.9bn, including a drawdown of £200mln from a revolving credit facility.
In the half-year ended March 31, the firm said its organic revenue growth was 1.6% and the impact on operating profits from lost revenue was 28%-29%, both as it had previously forecast.
“We estimate the company has around five months of full lockdown survival, which is amongst the lowest across our universe however its portfolio diversification should mean that it will continue to generate revenues in some regions/segments helping to extend this,” analysts at Liberum commented.
Shares dipped 1% to 1,307.5p on Thursday at the opening bell.
–Adds analyst’s comment, shares–
Published at Thu, 23 Apr 2020 07:35:00 +0000-Compass Group closes half of its operations due to coronavirus pandemic