LONDON (dpa-AFX) - Compass Group Plc (CPG.L, CMPGF.PK) reported profit before tax of 771 million pounds for the six months to 31 March 2020 compared to 852 million pounds, prior year. Earnings per share was 35.7 pence compared to 40.7 pence. Underlying operating profit decreased by 10.0% on a constant currency basis (11.7% excluding the impact of IFRS 16). Underlying basic earnings per share was 37.6 pence compared to 42.8 pence.
On a statutory basis, first half revenue was 12.48 billion pounds compared to 12.33 billion pounds, prior year, growth of 1.2% driven by organic growth, offset by the negative impact of COVID-19. Organic revenue grew by around 6% for the five months to February and declined by 20.4% in March, resulting in 1.6% organic revenue growth for the six months to March.
As a result of the impact of the COVID-19 pandemic, the Board has decided not to recommend an interim or a final dividend for the year ending 30 September 2020.
Also, Compass Group announced its intention to raise new equity to reduce leverage, enhance liquidity and strengthen its position into recovery through a non-pre-emptive placing of new ordinary shares of 11 1/20 pence each in the capital of the company.
In conjunction with the placing, the directors and members of the senior management team intend to subscribe for new ordinary shares in the capital of the company at the placing price. Also, there will be a Retail Offer made by the company on the PrimaryBid platform of new ordinary shares in the capital of the company at the placing price. The Retail Offer will be open to retail investors on 19 May 2020.
The company intends to raise gross proceeds of approximately 2.0 billion pounds through the placing, the Subscription and the Retail Offer. The company said the net proceeds of the placing will be used to strengthen its balance sheet and liquidity position, reducing leverage to deal with the challenging environment.
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