The Compass Group catering company suffered a sharp drop in sales and profits in the first half of the year, but this morning issued a positive note on its outlook for the future.
Compass revenue fell 32.4% from £ 12.48 billion to £ 8.44 billion in the six months ended March 31 due to the impact of coronavirus restrictions on its key customer base such as education, business and sports.
Read more: Free school meal provider Compass charts course for better margins after falling revenues
Operating profit fell 78.3 percent from £ 775million to £ 168million due to restrictions and pandemic-related costs such as business resizing and increasing workforce flexibility.
It has booked an additional Covid-19 resizing charge of £ 78million during the period.
However, Compass management was optimistic this morning about the company’s future.
The company said the pandemic has been an “accelerator of new digital and culinary initiatives” and is now helping customers prepare to reopen.
“Customers increasingly see us as a full-fledged service partner at the heart of their reopening and recovery plans,” Compass said in its half-year earnings statement.
“These factors, combined with greater flexibility in unit labor and lower unit costs, are changing our operating model and improving the quality of the business.”