Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Positive momentum in top line growth, driven by good levels of new business wins and a consistently high rate of retention. - Total revenue up 8.6% year on year, including contribution from acquisitions. - Organic revenue growth of 5.0%. - Strong performances in North America and Fast Growing & Emerging. Cash flow generation remains strong and we continue to make acquisitions and reward shareholders. - Interim dividend increased by 11%. - £188 million spent on acquisitions in the first half of the year. - On track to complete £500 million share buy back by the calendar year-end. The future prospects of the Group remain encouraging. - Expectations for the full year remain positive and unchanged. - Compass remains well placed to exploit significant growth opportunities, particularly in North American and Fast Growing & Emerging markets. - Further efficiency gains underpin our expectation of future improvement in the operating profit margin.
http://www.investegate.co.uk/Article.aspx?id=201205160700274236D
"The UK box office not only benefited from the Avengers but the release of American Pie: Reunion helped boost weekend takings by [roughly more than] 70% [over] the same period last year (source: boxofficemojo.com). Not only is this momentum positive for admissions but retail sales and premium priced 3D tickets should provide an additional boost for box office sales," Canaccordd reckons.
business. We expect the outlook statement to reassure and believe Compass remains a very attractive stock given its US exposure and high returning business model with a very strong balance sheet," Panmure Gordon said. Cinemas operator Cineworld gives a trading update on Wednesday and broker Canaccord thinks the company will be rubbing its hands in gleeful anticipation of the box office business it is likely to do with the new film based on the Marvel comics superhero team, The Avengers. The film broke box office records on its opening week-end.
Panmure Gordon is forecasting Compass's profit before tax will be £565m, giving earnings per share of 22.5p, and it, too, is predicting an interim dividend of 7p. "At the pre-close update the group remained encouraged by the pipeline of new
"The operating profit margin is expected to be at the same level as the first half of last year. Nevertheless, Compass still sees plenty of opportunity to improve margins over the medium term and there should be an uptick in the second half of 2012," Shepard observes. The first half margin has been affected by the mobilisation of a very large contract, continued investment in the fast growing areas as well as the negative impact from the challenging trading conditions in Europe, Shepard notes.
Interim results from contract caterer Compass should show the benefit of new contract wins and high retention rates. The figures could show revenue growth of 8.5% and organic growth of 5%, according to Charles Stanley analyst Tony Shepard. The broker is forecasting pre-tax profit of £560m, up from £531m last year. The interim dividend is forecast to increase to 7p from 6.5p
In so doing Compass looks to be turning into something of an emerging markets play with relatively defensive qualities – an attractive combination. In March, Compass maintained full year profits guidance despite a prediction of slowing H1 growth, so if this is maintained at the interim stage, the share price should continue with the recent outperformance
Recent trading updates have revealed the extent of the challenge, something the company has tackled through a series of acquisitions in areas as diverse as the Czech Republic, Japan and South Africa.
A mix of key corporate news and numbers are due this week. Wednesday sees catering giant Compass Group (CPG) reports interims, as it attempts to appeal to customers delivering their own brand of austerity whilst ensuring its own margins continue to grow.
Compass Reckons Counting Calories Totals Up The Profit Compass Group UK & Ireland Launches New Food Programme Food service provider, Compass Group UK and Ireland has launched a new programme to drive consumer education around its health, wellbeing and sustainable sourcing activities, called Know Your Food. In March, Compass was the only contract caterer to commit to the Government’s calorie reduction Responsibility Deal pledge, promising to reformulate over 5,000 of its standard recipes, reducing the calorie content in these dishes by up to 10 per cent. As part of the pledge Compass also committed to provide consumers with a wide rage of healthier choices and more information about health and nutrition. Group Managing Director of Compass UK and Ireland, Ian Sarson, says: "Know Your Food will enable us to provide our customers with clear, easy-to-understand information while keeping our clients up-to-date on our leadership in this area." Branded Know Your Food materials have been developed, and Compass is also introducing Know Your Food boards to be displayed at sites, in line with the varying needs of its sector businesses. Monthly Know Your Food packs will be provided to Compass teams at all appropriate sites which include educational leaflets around key topics such as the importance of hydration and salt reduction. As part of the programme, Compass will continue to roll-out whole+sum, its innovative mix and match food concept offering meals under 500 calories. http://www.conference-news.co.uk/news/2012/05/04/Compass-Group-UK-and-Ireland-launches-new-food-programme/4313 See also: http://www.retail-digital.com/press_releases/411fit-and-compass-group-north-america-form-strategic-partnership P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
This is a very informative video with extensive descriptions of Compass services in various countries and to various corporate and public service customers. http://www.youtube.com/watch?v=27JdX2QrCz0&feature=relmfu
Short Video that explains the services that Compass provides in the UK and Ireland: http://www.youtube.com/watch?v=b8LFzVEqKNI&feature=related
CEO, Richard Cousins talks to CNBC in Europe about Compass Group's Full Year Results to 30 September 2011. These state the latest full year financial position of the group: http://www.executiveinterviews.net/players/mini/default.asp?order=UK04972
Compass is the world’s largest catering group, which also offers a range of support services such as facilities management. The business is defensive in turbulent times – and investors have continued to be rewarded since the financial crisis began. Last week’s first-half trading update was positive, but there was a cautious tone. However, Not only is there structural growth in Compass markets, but its model works in new markets, too. Although margins could be flat in the first half of the year, revenue growth is ahead of expectations and the company still expects to make full-year expectations. With the company usually giving conservative guidance, this is good news. The shares fell after the update because of the recent strong run and the fact that some investors were disappointed with the lack of upgrades. However, the business is healthy, growing and well managed. The shares are trading on a September 2012 earnings multiple of 15.3 times, falling to 13.9 next year. The prospective yield is 3.2%, rising to 3.5%. “The shares remain a buy at these levels,” Questor says.
Following yesterday's trading update from contract caterer Compass Group, Nomura has reiterated its buy rating and 800p target price for the stock, saying that it remains its preference in the European leisure sector. "CPG remains one of our top sector picks because of structural growth in the catering and support services segments, free cash flow strength and medium-term potential for margin upside," the broker said.
Tempus in The Times defends catering and contract cleaning group Compass from rather pernickety analyst notes about slowing growth. For the first half of the year organic growth (that is, stripping out acquisitions) was 5% versus the previous year’s 5.5%. Tempus points out Compass is still a cash generating machine, making lots of bolt-on acquisitions in emerging markets. There’s a lot of money to be made selling hot dogs in basketball stadiums and then cleaning up afterwards (a rough approximation of Compass’s business model) but the shares trade on 15 times forward earnings, Tempus thinks they’re not going much higher in the near future.
Summary and outlook Compass has had a positive start to the year. Organic growth has been driven by good rates of new business wins, levels of retention remain high and infill acquisitions are making a meaningful contribution. We are continuing to generate good levels of cost efficiencies, which are enabling us to reinvest our strong cashflow in the business at the same time as helping us to manage the ongoing challenge of tough economic conditions in some markets. As we look out to the second half, whilst the current economic uncertainty is likely to continue to put pressure on like for like volume in some regions, we remain positive about the opportunities to grow the business and we are encouraged by the pipeline of new business. We are well placed to capitalise on the significant structural growth opportunities in both food and support services around the world and we are increasingly expanding our presence in fast growing and emerging markets, which remain a focus for future growth.
Trading Update This statement updates investors on the Group's progress in the current year, ahead of the announcement on 16 May 2012 of its results for the half year to 31 March 2012. Group Compass has had a good first half of the year. The positive performance in the first quarter has continued into the second quarter and our expectations for the full year remain unchanged. Total revenue growth is expected to be around 8.5% in the first half of the year and organic growth is set to increase by nearly 5%, driven by further good performances in North America and Fast Growing & Emerging Markets. We have continued to see good levels of new business wins and a consistently high level of retention across the Group. Overall, like for like revenue growth is positive, although it is below the levels of the first half of last year, as challenging economic conditions continue to impact like for like volume in the UK and parts of Europe. Through the ongoing application of MAP, we are continuing to generate cost efficiencies across the business. These efficiencies are, in part, being reinvested in exciting growth opportunities around the world, helping us to manage the effects of difficult economic conditions in some of our markets, and underpin our expectations of future improvement in the operating margin. Overall, the operating profit margin for the first half is expected to be at the same level as the first half of last year. We continue to see good levels of free cash flow conversion.
http://www.investegate.co.uk/Article.aspx?id=201203270700161147A
COMPASS GROUP ACQUIRES NKS IN JAPAN We are pleased to announce that Compass Group has acquired NKS Kabushiki Kaisha Ltd and associated companies (together "NKS") from Mr Yamamoto, its Chief Executive. For the year ended 31 March 2011, NKS had revenues of JPY 6.4 billion (c.£50 million) and gross assets of JPY 4.7billion (c.£36 million). NKS is a provider of food services, primarily to the healthcare sector, in Japan. The business is based in Tokyo, operating around 200 units with over 1,200 staff. The acquisition strengthens Compass' presence in the expanding healthcare sector and, in particular, in senior living, which is a significant growth area in Japan.
http://www.investegate.co.uk/Article.aspx?id=201203060700157221Y
Shore Capital reduced its "buy" recommendation on Compass Group (CPG) to "hold" following a sustained period of price appreciation in the contract catering firm's share price. The broker commented that despite the stock continuing to 'tick all the right boxes', January 2012 non-farm payroll data had reached historic normal levels, and Compass' like-for-like sales in Europe had recently turned negative. Shore has now called time on the stance it has held for four years, a period in which the shares have almost doubled.
Catering company Compass (CPG) completed the acquisition of Czech food services provider Dora Gastro for an undisclosed sum. The target reported revenues of 446.1 million koruny (14.8 million pounds) for the year ended 31st December 2010, with assets of 178.2 million koruny (5.9 million pounds). Dora will be incorporated into Compass' existing subsidiary Eurest, which focuses on servicing the business and industry sector. The shares edged up by 4.5p to 629p.
Hi cinders - did you make a bob or too - its not always easy to do!