Compass Group closes 55% of its businesses as a result of country lockdowns
In the latest trading update by Compass Group, the multinational food and support services company has seen 55% of its businesses closed due to country lock downs as a result of the coronavirus pandemic.
The Group’s Sports & Leisure division is 100% closed, while its Education and Business & Industry divisions are 75% closed. Only the company’s Healthcare and Defence, Offshore and Remote divisions remain 100% in operation.
Compass reported it is proactively mitigating its cost base by around £450 million per month by taking a wide range of actions including limited use of variable forms of in-unit labour such as over-time, contractors, and temporary workers, and redeploying or furloughing much of the fixed element of its in-unit labour, reducing salary, hours or furloughed above-unit overhead employees. The Chief Executive has also temporarily reduced his salary by 30%, whilst the Group Board and Executive Committee have temporarily reduced their fees and salaries by 25%.
The group added in its statement its purpose is to care for the communities it serves. Compass Healthcare teams around the world have mobilised resources at scale and with pace to allow the business to support governments and Healthcare clients. It is also preparing and delivering food to critical and essential workers, the elderly, vulnerable and those in financial distress, often working in partnership with grassroots support organisations.
Examples of the support Compass teams are providing across the globe include:
- Redeploying thousands of employees from other sectors to support new hospitals such as the NHS Nightingale Hospital in London, the Louisa Jordan Hospital in Glasgow and the hospital in the IFEMA exhibition centre in Madrid
- In the UK, Compass is working with its partner FareShareUK to ensure food waste is minimised and that surplus food is redistributed to those who need it most
- In New York, the business is supporting a new external testing centre in Brooklyn and providing technical support by inspecting and distributing donated ventilators
- In India Compass has formed a partnership with government and NGOs to prepare and deliver food to those in need with initiatives like www.letsfeedtogether.com
Dominic Blakemore, Group Chief Executive said: “I’d like to thank the tens of thousands of Compass colleagues around the world who are supporting clients and governments in providing critical and essential services. Their dedication, combined with the many initiatives around the world to prepare and distribute food to help those most in need, make me extremely proud of the contribution our people are making to the fight against COVID-19.
“We are managing the business to protect the interests of all our stakeholders. Compass is a strong, resilient organisation that is well-positioned to continue to support our colleagues, clients, consumers and the communities we serve during this challenging period.”
Compass added the business has performed in line with the expectations set out in its Coronavirus Trading Update of 17 March 2020. Organic revenue growth for Half Year 2020 was c.1.6%, within the 0%-2% expected range.
Interim results will be published on 20 May 2020.
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