Catering company Compass plans to move away from the provision of cleaning and security services to concentrate on its food business, he suffered sliding half profit, especially in Europe.
The company promises “even more attention” on its food business services, which provides food for the armed forces, schoolchildren and the major events, instead of having to win the support of contracts for the provision of services.
The company flagged its intention to move away from support early in the year, but Executive Director Dominic Blakemore said he plans to focus on “what the company does well,” in order to maximize profits.
Currently, the account support approx 15pcs business revenue. “About half of this 15pcs complete contracts, where we provide food and cleaning services, such as hospitals,” said Mr. Blackmore.
“We are pleased with this model, but there are about 5pcs-where we were just discussing whether we have the right owners of these enterprises.”
Kean Marden, equity analyst at Jeffrey, said that the Compass can be more “aggressive” in the transition from work support services.
“The change will improve the quality of earnings but may slightly affect the group’s organic revenue and profit growth within one to two years,” he added.
Compass group 1-year stock price
Compass reported first half results on Wednesday in which he said he missed her expectations of income due to stagnant revenue and a sharp decline in margins in Europe.
The sales amounted to $ 11.38 billion, compared with £11.47 billion a year earlier, while profit before tax fell 4.7 PC to £792m in the result of the stronger pound, which affected foreign currency.
In Europe – which contributes about a quarter of the revenue of Kompas – profit fell 9.6 PC on a constant currency basis.
Shares in the FTSE 100 listed company fell as much as 6.7 PC to $ 14.77 in response, their biggest intraday decline in almost four years.
But, as stated by Mr. Blackmore the business was in good shape, pointing to the recent contract wins in the UK to provide power for Goodwood, on 12,000 acres in West Sussex is known for motor sports and equestrian events, and the game Tottenham Hotspur football club.
“I’m very happy significant structural opportunities for growth globally and long-term potential for further growth in income,” he added.
The compass was lost long ago, chief Executive Richard cousins in the crash of a seaplane in the New Year’s eve.
He saw the architect of the company’s success over the past decade, and analysts and investors are watching performance closely under Mr. Blackmore signs how the business will function.