"solid and well run business" - they were saying that about Carillion a couple of years ago. Anyway, I jest. This is a keeper. Great results. I have 2 tranches in CPG and will happily add another when things in general settle down a bit. I should have bought yesterday!
They just keep on delivering. A solid and well run business somewhere I have kept some serious money invested over the years. Currently over 300% up on my initial investment which i wish i could say the same for some of my more fanciful stock picks.
Just goes to show that if you are going to play the market it really does pay to move profits taken from trading into high quality stock when and if you get the chance.
Yes very solid. Analyst forecast FY revenue growth is showing 3-4% . 1Q 5.9%, and "Therefore, we now expect to be above the middle of our target 4-6% organic growth range for the full year". I'll be watching for upgrades.
The much vaunted return of business to US, especially manufacturing plants should give plenty of further growth opportunities and who knows, the offshore/oil business may one day pick up.
Tax news good as expected - group rates down from 26.5 % to 24% would add 2.4p to EPS based on 2017 PTP. (P&L actually shows 2017 group tax rate as 24.9% but I assume they know what they mean!)
Positive reaction from market and rightly so, hard to know if it can break out of the downtrend, could make a case for resistance around 1560 and 1600 which may take a while.
Lets hope that Compass can continue the positive track Richard Cousins set them on.
I hesitate to post this but some years ago I lost several friends in a mid-air collision. The cause was human factors - procedural shortcomings - you could say. I was on the ground at the time but saw what happened and the aftermath. Worst day of my life. It was a nightmare that I still live with. I never flew P1 again after that.
Flying can be so much fun. I never tired of it. Most of us now take flying for granted - almost like driving or being a passenger in a car. But every so often tragedy strikes to remind us of the risks that we take and have become accustomed to, often without giving it a thought. There's an old adage that you're more likely to die in a car on the way to the airfield than in an aircraft. Statistically that might be true, but it doesn't make it any easier if you lose someone.
It's a new year, for those of us fortunate enough to still be here. Stay safe one and all.
I am holidaying in Australia at present and this tragic accident is all over the news.
What is annoying is that firstly it seems a needless and cruel waste of lives and secondly I remember a similar plane crash in the same state of New South Wales 20 years ago in which four of my friends were killed among a total of nine people on board (that was the Seaview crash).
In the Seaview case it turned out there were safety deficiencies both with the charter company and the regulator.
Part of the problem in Australia is that very little is governed at national level and instead is devolved to each state to look after their own affairs so you end up with multiple regulators none of whom is best in class.
I hope we don't see a replay of those shortcomings here.
01 January 2018
It is with deep sadness that we can confirm that our Group Chief Executive, Richard Cousins and four members of his close family have died in a plane accident in Australia on 31 December 2017.
Paul Walsh, Compass Group Chairman, said: We are deeply shocked and saddened by this terrible news. The thoughts of everyone at Compass are with Richards family and friends, and we extend our deepest sympathies to them.
It has been a great privilege to know Richard personally and to work with him for the last few years. Richard was known and respected for his great humanity and a no-nonsense style that transformed Compass into one of Britains leading companies.
This board seems neglected most of the time considering the quality of the Business it covers.
To prove the point I last posted in August 2013 and the post is still there on the current page. On the 1st September 2013 the share price closed at 850p. Since when we have enjoyed an increased dividend stream and considerable capital gains.
Compass are an excellent business and I have had them as one of my core holding for years and continue to hold.
There really is no reason based on information in the public domain why the share price took a drop today. All I would say is that in the current environment with so much turmoil in the UK Compass still looks to be a safe haven for core holding which in my case allows me the peace of mind to focus on the more 'fun' stocks I hold without worrying too much about medium/long term fluctuation.
If you're looking for excitement Compass isn't for you but as a home for hard won gains from elsewhere and in the absence of anything more exciting they appear to me to be a safe (as safe as any risk rate investment can be!) home for your money.
Just checked my TD ISA account & seems they have made an error with above.
Pre Consolidation holding 1344 should now be 25/26 so 1292 but only 1215 showing.
Also special dividend 61p is paid on pre consolidation holding (1344) so should be £819.84 but only paid £771.04.
Query raised but maybe worth others checking unless I have misunderstood?
The U.K. services provider said on Wednesday it will return 1 billion pounds ($1.3 billion) to investors in the form of a special dividend, sending its shares to a record high. Its the second such payout in three years and comes on top of an increased ordinary dividend for the first half of the fiscal year.
The one-time distribution of 61 pence a share reflects excellent cash generation and the strength of the business, Chertsey, England-based Compass said in a statement, adding that its expectations for the year are positive and unchanged.
Compass has grown to become one of Britains biggest companies, employing more than 500,000 people providing a range of services to hospitals, factories, offices, universities and sports venues around the world. A key part of the business model is cash generation, which exceeded 500 million pounds in the first half of the current financial year.
Its a nice problem, isnt it, when you throw off too much cash, Chief Executive Officer Richard Cousins said by phone. The latest special dividend brings total shareholder returns to about 9 billion pounds over the last decade, he said.
Compass Group's organic revenue for the first three months to 31 December grew by 2.8%, in line with its expectations.
A trading update ahead of today's annual general meeting said the group continued to see strong levels of new business wins and good retention rates.
Like for like revenues increased modestly, with some pricing offsetting weak volumes in its Offshore & Remote sector.
It added: "Our operating margin moved forward slightly, as efficiencies generated through our management and performance (MAP) programme more than offset cost inflation and our investment in the exciting growth opportunities we see around the Group.
"In addition, the end of the restructuring programme in our Offshore & Remote business also contributed to the improvement in the operating margin in the quarter."
I reckon good times ahead with low pound due to fall even lower as Brexit gets under way. This will boost SP as most earnings are outside UK.
"Our maiden seasonal portfolios in 2014 did twice as well as the benchmark index. It was tougher last year, but both the Interactive Investor Consistent and Aggressive Winter Portfolios still beat the wider market. We're in no doubt that 2016 ..."
This petition was stalled in parliament since 12th Aug 15; finally green lit on 12th feb 2016.
The FCA have finally replied, saying its nothing to do with them as they only deal with market abuse & insider dealing, now is your chance to have your say.
If you hate seeing buys reported as sells etc!!!!!!
Has already been sent to Martin Lewis, Daily Mail, Moneyweek & Watchdog.
My local MP supported this petition by writing to the petitions committee to help un-stall it.
Theres 650 MPs in Westminster, So have you written to your MP? 649 to go!
If this petition doesnt reach 10,000; then imo we might as well have not bothered as it will almost certainly be filed B1N; @ 10,000 the government should respond. ONLY 8 weeks to go !!!
So If you havent yet signed or indeed have but havent passed it on to others, then nows the time to do so.
Read Panmure Gordon & Co's note on COMPASS GROUP PLC (CPG), out this morning, by visiting https://www.research-tree.com/company/GB00BLNN3L44
"Compass has released a solid trading for the first half of the year with Organic revenue growth of 5.8% (similar run rate to 2015 and Q1) driven by new business and good retention rates. Like for Like was positive, reflecting modest pricing and some volume improvement. However, reported margin was down - 10bps due to the previously announced restructuring costs with underlying margin flat; however, this should recover in 2H. Outlook remains positive and unchanged and we do not expect to make any significant changes to our ..."
No harm in holding on to these, but I can't help feeling they are fully valued for the time being. Very reliant on their U.S. business and there is probably more work to do in addressing the high-cost low-margin businesses in the UK and parts of Europe.
A good set of results from Compass, but at the current SP there is no margin of safety. Patience can provide opportunities though, when you consider that during the past 12 months, when there was no change in expectations for the business, there is a 23% swing from the low to the high in the SP.
The major risk to the business remains food commodity prices.
"If that bloke at Sports Direct subscribed to TaT, he'd not be viewing a current Â£1.31 million loss on his Tesco purchase. COMPASS GROUP (LSE:CPG) has had a cracking positive history as the chart shows. The share price is actually showing ..."
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