(Alliance News) - Compass Group PLC on Thursday said revenue so far in its first half of its financial is down by almost a third as the contract caterer continues to be hit by Covid-19 restrictions.
The hurt from the pandemic has been felt the most in its Business & Industry division, which has been hit by a lack of events, and in its Sports & Leisure arm. Empty stadiums have meant the unit, which has Chelsea Football Club among its clients, saw first half revenue fall by just shy of three-quarters.
For the six months ending March 31, Compass said group organic revenue is down roughly 31%. It saw a 34% drop in the first-quarter, before a slightly softer 28% fall in the second.
Volumes are "subdued", but margins have improved to 4.0% in the second quarter from 2.7% in the first.
Compass noted comparatives will get easier soon. The FTSE 100 company said it is beginning to "lap the Covid-19 impact on our last year's revenues".
"While the vaccination efforts around the globe are advancing, the pace of volume recovery remains uncertain. Encouragingly, the pipeline of new business and client retention continue to be strong," Compass said.
Sports & Leisure was the worst-hit division in the first half, seeing a 73% organic revenue drop. In Business & Industry, it fell 42%. The company's Education arm saw a 33% fall, while Healthcare & Seniors was much more resilient as organic revenue there actually rose 1%.
Defence, Offshore & Remote, which provides services to companies in the mining, oil & gas, construction and defence industries, has had a 1% revenue fall.
"We are controlling the controllable by managing our costs, adapting our operations and resizing our business. We remain confident in our ability to rebuild our group underlying margin above 7%, before we return to pre-Covid volumes," Compass added.
Compass shares were 0.9% higher at 1,482.50 pence each in London on Thursday morning.
The company reports on its first half results on May 12.
By Eric Cunha; ericcunha@alliancenews.com
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Compass Group (CPG)