REG - Compass Group PLC - Half Year Results Announcement
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RNS Number : 7603D Compass Group PLC 11 May 2026
Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68
Half Year Results Announcement for the six months ended 31 March 2026
Underlying(1) results Statutory results
HY 2026 HY 2025 Change HY 2026 HY 2025 Change
Revenue $25.0bn $23.0bn(2) 9%(2) $25.0bn $22.6bn 11%
Operating profit $1,839m $1,647m(2) 12%(2) $1,605m $1,476m 9%
Operating margin 7.4% 7.2% 20bps 6.4% 6.5% (10)bps
Earnings per share 72.8c 65.1c(2) 12%(2) 62.9c 54.2c 16%
Operating cash flow $1,324m $1,161m 14% $1,588m $1,336m 19%
Free cash flow $825m $743m 11%
Interim dividend per share 25.5c 22.6c 13% 25.5c 22.6c 13%
12%(2) underlying operating profit growth with strong margin progression
Raising full-year profit guidance
Revenue growth 9%(2), balanced across both regions:
• Organic revenue up 7.2% with strong client retention at 96%
• New business wins of $4.1bn(3), 14% increase year on year, with half
from first-time outsourcing
• Mobilised net new business growth 4.2% over last 12 months and 3.8% in
H1; with expected acceleration in H2
Underlying operating profit increased by 12%(2):
• Underlying operating margin up 20bps to 7.4% benefiting from overhead
leverage and M&A synergies
• Underlying earnings per share up 12%(2) to 72.8c
• Underlying operating cash flow up 14% to $1,324m
Investing in competitive advantages, supporting long-term growth:
• Highly attractive structural growth opportunities with addressable
market having grown at c.5% per annum
• Integration of Vermaat progressing well, further strengthening our
European growth platform
• Acquired Pro Care Management in Germany for $270m; now operating Group
Purchasing Organisations in five of our top ten markets
• Total M&A expenditure of $2.3bn alongside $0.8bn of capital
expenditure (3.4% of revenue)
Raising 2026 underlying operating profit growth guidance from around 10% to above 11%(2):
• Driven by organic revenue growth of around 7%, around 2% profit growth
from M&A and ongoing margin progression
• Longer term, we remain confident in sustaining mid-to-high single-digit
organic revenue growth, ongoing margin progression and profit growth ahead of
revenue growth
Statutory results:
• Operating profit, including non-underlying charges related to business
acquisitions (mainly amortisation of acquired intangible assets), increased by
9% to $1,605m. The 10bps reduction in operating margin reflects these higher
charges
1. Reconciliation of statutory to underlying results can be found in notes 2
(segmental analysis) and 13 (non-GAAP measures) to the consolidated financial
statements.
2. Measured on a constant-currency basis.
3. Annual revenue of new business wins in the last 12 months.
Business review
Dominic Blakemore, Group Chief Executive, said:
"We've delivered a strong first-half performance, with underlying operating
profit up 12%(1), enabling us to increase our full-year profit guidance. We
have great momentum across the business, driven by excellent new business
wins, high levels of client retention and margin progression in both regions.
We continue to invest in our competitive advantages - our sectorised model,
purchasing scale and technology capabilities. Recent acquisitions, including
Vermaat in the Netherlands and Pro Care Management in Germany, further enhance
our European platform, supporting long-term, sustainable growth. By deploying
data, technology and AI, we are operating more effectively and consistently at
scale, improving decision-making and execution across the business.
Compass operates in a highly attractive market, with sectors that are expected
to benefit from continued structural growth. Our total addressable market has
historically grown at around 5% per annum and could reach c.$600bn by 2035.
Clients face increasing complexity, such as regulation, allergens and data-led
insights, and these factors are driving demand for outsourcing across all
sectors.
Our pipeline is broad-based, with recent wins up 14% to $4.1bn(2), led by
Business & Industry, which is our best-performing sector delivering
double-digit growth across a diverse client base. Our sub-sectorised approach
underpins this, driving growth across emerging areas, including the AI
ecosystem. Today's results demonstrate consistent execution and the strength
of our business model as our services become increasingly integral to our
clients' operations, supporting strong recurring revenues.
For 2026, we now expect underlying operating profit growth above 11%(1),
underpinned by organic revenue growth of around 7%, around 2% growth from
M&A and ongoing margin progression. Looking further ahead, we remain
confident in our ability to sustain mid-to-high single-digit organic revenue
growth, ongoing margin progression and profit growth ahead of revenue growth."
Results presentation today
Today, 11 May 2026, management will present Compass Group's Half Year 2026
results.
At 9:00am (UK time), investors and analysts will be able to view a video
presentation which will stream live on the Compass Group website at
www.compass-group.com. An audio-only telephone option is available if you are
unable to watch the video.
Following the video presentation, management will host a live Q&A session
for investors and analysts. Participants must be connected by phone to ask a
question during the conference call.
Participant dial in details:
UK +44 (0) 33 0551 0200
UK Toll-Free 0808 109 0700
US +1 786 697 3501
US Toll-Free +1 866 580 3963
Enquiries
Investors Agatha Donnelly and Simon Bielecki +44 1932 573 000
Press Tim Danaher, Brunswick +44 207 404 5959
Website www.compass-group.com (http://www.compass-group.com/)
Financial calendar
Ex-dividend date for 2026 interim dividend 18 June
Record date for 2026 interim dividend 19 June
Last day for dividend currency elections 6 July
Last day for DRIP elections 9 July
Sterling equivalent of 2026 interim dividend announced 14 July
Q3 trading update 21 July
2026 interim dividend date for payment 30 July
Full-year 2026 results 24 November
1. Measured on a constant-currency basis.
2. Annual revenue of new business wins in the last 12 months.
Business review (continued)
Basis of preparation
Throughout the Half Year Results Announcement, and consistent with prior
periods, underlying and other alternative performance measures are used to
describe the Group's performance alongside statutory measures (see page 6).
Strategy
We are focused on the provision of quality food services, complemented by
targeted support services where appropriate. We operate in an attractive
market, which has grown at around 5% per annum over the last 10 years and is
now worth around $360bn, of which we have less than 15% market share. Assuming
this growth rate continues, as we add further capabilities and target new
sub-sectors, our addressable market could grow to c.$600bn by 2035.
Around three quarters of the market remains self-operated or served by
regional providers. Our decentralised operating model, combined with the
benefits of scale, provides a differentiated proposition in the market. We are
continuing to invest for growth, through capex and targeted acquisitions that
strengthen our capabilities and deepen our sector expertise. We see
significant potential to harness technology and AI‑driven innovation as a
growth enabler; supporting new service opportunities, more personalised client
solutions and an enhanced consumer experience.
Our sector expertise, global scale, digital capabilities and sustainability
leadership increasingly position Compass as a strategic partner, with clients
citing our operational excellence, innovation and thought leadership as key
differentiators.
Performance
Compass delivered a strong first-half performance, with underlying operating
profit growth of 11.7%(1) on a constant-currency basis driven by organic
revenue growth of 7.2%(1), 1.5% revenue growth from M&A and a 20bps
increase in underlying operating margin to 7.4%(1).
Cash flow generation was strong, with underlying operating cash flow
conversion of 72.0%(1) (2025: 71.4%) and underlying free cash flow of $825m(1)
(2025: $743m), an increase of 11.0% on the prior period, after capital
expenditure of $0.8bn(1) (2025: $0.7bn), 3.4% of revenue.
Net M&A expenditure was $2.3bn, which includes $1.7bn for Vermaat, a
premium food services business in the Netherlands, in December 2025 and $0.3bn
for Pro Care Management, a food Group Purchasing Organisation in Germany, in
February 2026.
At 31 March 2026, leverage (net debt to underlying EBITDA) was, as expected,
outside the Group's target range of 1-1.5 at 1.7(1) (30 September 2025: 1.4)
due to the level of M&A activity in the period.
Revenue
Revenue increased by 10.7% to $24,983m (2025: $22,568m). Revenue growth on a
constant-currency basis was 8.7%(1), with strong performance across both
regions and all sectors.
Organic revenue growth of 7.2%(1) was driven by net new business growth of
3.8%(1), underpinned by strong client retention of 96%(1), with pricing of
2.7% and like-for-like volume growth of 0.7%.
Operating profit
Underlying operating profit increased by 11.7%(1) on a constant-currency
basis, to $1,839m(1), with underlying operating margin up 20bps to 7.4%(1)
(2025: 7.2%) as the Group benefited from operating leverage on its increased
revenues and synergies from recent business acquisitions.
Statutory operating profit was $1,605m (2025: $1,476m), an increase of 8.7%,
with statutory operating margin of 6.4% (2025: 6.5%). Statutory operating
profit includes higher non-underlying item charges of $234m (2025: $151m),
which are primarily acquisition-related charges of $223m (2025: $141m). A full
list of non-underlying items is included in note 13 (non-GAAP measures).
2026 guidance
The Group expects to achieve underlying operating profit growth above 11%(1)
in constant currency driven by organic revenue growth around 7%(1), around 2%
profit growth from M&A and ongoing margin progression. Underlying finance
costs are still expected to be c.$350m(1) and our underlying effective tax
rate is expected to be around 25.5%(1). Leverage is expected to be above our
target range of 1-1.5 in 2026 after peaking at the half year due to M&A
activity.
1. Alternative Performance Measure (APM). The Group's APMs are defined in note
13 (non-GAAP measures) and reconciled to GAAP measures in notes 2 (segmental
analysis) and 13 to the consolidated financial statements.
Business review (continued)
Capital allocation
Our capital allocation framework is clear and unchanged. Our priorities are to
invest in the business to fund growth opportunities, target a strong
investment-grade credit rating with a leverage target of around 1-1.5 times
net debt to underlying EBITDA and pay an ordinary dividend, with any surplus
capital being returned to shareholders.
Growth investment consists of: (i) capital expenditure to support organic
growth in both new business wins and retention of existing contracts; and (ii)
bolt-on M&A opportunities that strengthen our capabilities and broaden our
exposure. We have a proven track record of strong returns from our investment
strategy as evidenced by our historical returns on capital employed.
Shareholder returns
Our dividend policy is to pay out around 50% of underlying earnings through an
interim and final dividend, with the interim dividend reflecting around
one-third of the total annual dividend. The Board has approved an interim
dividend of 25.5c per share representing an increase of 13% on the prior
year's interim dividend.
Shareholders appearing on the Register of Members or holding their shares
through CREST will automatically receive their dividends in sterling, but have
the option to elect to receive their dividends in US dollars. For shares held
in certificated form on the register, US dollar elections can be made by
contacting our share registrar, MUFG Corporate Markets. MUFG's contact details
can be found on our website under Dividend Information.
People
Our people are central to Compass Group's success. Every day, our chefs and
front-line teams deliver outstanding food and service experiences for clients
and consumers, underpinned by our caring, winning culture.
We continue to invest in our global workforce of over 590,000 colleagues,
recognising that attracting, developing and retaining talented colleagues is
essential to delivering our strategy. Across our markets, we offer a broad
range of programmes to support learning, career development and progression,
while creating an environment in which our people can grow and succeed.
Our decentralised model empowers local leadership teams to respond to the
needs of their businesses and communities. We are committed to building
diverse teams that reflect the markets in which we operate, supported by
inclusive recruitment practices and targeted leadership development.
The health, safety and wellbeing of our colleagues remain core priorities.
Robust policies and standards underpin excellence in food and personal safety
across our operations, while ongoing engagement with our workforce supports a
safe, supportive and ethical working environment worldwide.
Purpose
We drive meaningful change and improve lives by harnessing our passion for
food, promoting responsible sourcing and reducing food waste.
As part of our Planet Promise, we are committed to achieving climate net zero
globally by 2050 through culinary innovation, collaboration and partnerships.
We are focused on reducing food waste across our value chain, with more than
10,000 sites recording waste in 2025. Beyond our kitchens, this year marks 10
years of our global Stop Food Waste campaign, reflecting our longstanding
focus on reducing food waste.
We continue to make good progress towards our emissions targets, reducing our
overall greenhouse gas intensity ratio (normalised for revenue growth) in
2025. The Group is integrating carbon intelligence into core digital systems,
including menu management and procurement solutions, to embed emissions
considerations into decision-making and support delivery of its climate
commitments.
Business review (continued)
Summary
Compass delivered a strong first half, with underlying operating profit up
12%(1) on a constant-currency basis, driven by good revenue growth and margin
progression. As a result, we are raising our full-year underlying operating
profit growth expectations for 2026.
The market opportunity for food services remains very attractive and is
expanding as we add further capabilities and target new sub-sectors for
growth. New business wins remain strong, increasing 14% year on year to
$4.1bn(2).
We continue to invest in and strengthen our core competitive advantages,
including our sector-focused model, purchasing scale and technology
capabilities. Recent acquisitions, notably Vermaat in the Netherlands and Pro
Care Management in Germany, further enhance our European platform and support
long-term, sustainable growth.
We are executing consistently against our growth algorithm and remain
confident in our ability to deliver mid-to-high single-digit organic revenue
growth, ongoing margin progression and profit growth ahead of revenue growth.
1. Alternative Performance Measure (APM). The Group's APMs are defined in note
13 (non-GAAP measures) and reconciled to GAAP measures in notes 2 (segmental
analysis) and 13 to the consolidated financial statements.
2. Annual revenue of new business wins in the last 12 months.
Financial review
Group performance
We manage and assess the performance of the Group using various underlying and
other Alternative Performance Measures (APMs). These measures are not defined
by International Financial Reporting Standards (IFRS) or other generally
accepted accounting principles (GAAP) and may not be directly comparable with
APMs used by other companies. Underlying measures reflect ongoing trading and,
therefore, facilitate meaningful year-on-year comparison. The Group's APMs,
together with the results prepared in accordance with IFRS, provide
comprehensive analysis of the Group's results. Accordingly, the relevant
statutory measures are also presented where appropriate. Certain of the
Group's APMs are financial Key Performance Indicators (KPIs) which measure
progress against our strategy. The Group's APMs are defined in note 13
(non-GAAP measures) and reconciled to GAAP measures in notes 2 (segmental
analysis) and 13 to the consolidated financial statements.
2026 2025 Change
Revenue
Statutory $24,983m $22,568m 10.7%
Statutory (constant currency)(1) $24,983m $22,988m 8.7%
Organic(1) $24,659m $23,005m 7.2%
Operating profit
Statutory $1,605m $1,476m 8.7%
Underlying(1) $1,839m $1,627m 13.0%
Underlying (constant currency)(1) $1,839m $1,647m 11.7%
Operating margin
Statutory 6.4% 6.5% (10)bps
Underlying(1) 7.4% 7.2% 20bps
Basic earnings per share
Statutory 62.9c 54.2c 16.1%
Underlying(1) 72.8c 64.5c 12.9%
Underlying (constant currency)(1) 72.8c 65.1c 11.8%
Cash flow
Statutory (net cash flow from operating activities) $1,588m $1,336m 18.9%
Underlying operating cash flow(1) $1,324m $1,161m 14.0%
Underlying free cash flow(1) $825m $743m 11.0%
Dividend
Interim dividend per ordinary share 25.5c 22.6c 12.8%
1. Alternative Performance Measure (APM) (see pages 34 to 41).
Financial review (continued)
Income statement
2026 2025
Statutory Adjustments Underlying(1) Statutory Adjustments Underlying(1)
$m
$m $m $m $m $m
Revenue(2) 24,983 22,568
Operating profit 1,605 234 1,839 1,476 151 1,627
Net loss on sale and closure of businesses (5) 5 - (36) 36 -
Finance costs (128) (38) (166) (157) 8 (149)
Profit before tax 1,472 201 1,673 1,283 195 1,478
Tax expense (393) (33) (426) (357) (20) (377)
Profit for the period 1,079 168 1,247 926 175 1,101
Non-controlling interests (10) - (10) (7) - (7)
Attributable profit 1,069 168 1,237 919 175 1,094
Average number of shares 1,699m - 1,699m 1,697m - 1,697m
Basic earnings per share 62.9c 9.9c 72.8c 54.2c 10.3c 64.5c
EBITDA 2,590 2,245
1. Alternative Performance Measure (APM) (see pages 34 to 41).
2. With effect from 1 October 2025, the Executive Committee has monitored the
statutory revenue rather than the underlying revenue of its two geographical
segments. Underlying revenue was previously defined as statutory revenue plus
share of revenue of joint ventures. Following the recent strategic exits from
non-core countries, joint ventures are not significant to the Group. The share
of revenue of joint ventures in the period is $27m (2025: $28m). Comparative
segmental financial information for 2025 has been re-presented.
Revenue
Revenue increased by 10.7% to $24,983m (2025: $22,568m). Revenue growth on a
constant-currency basis was 8.7%, with strong performance across both regions
and all sectors.
Organic revenue growth of 7.2% was driven by net new business growth of 3.8%,
underpinned by strong client retention of 96%, with pricing of 2.7% and
like-for-like volume growth of 0.7%.
Operating profit
Underlying operating profit increased by 11.7% on a constant-currency basis,
to $1,839m, with underlying operating margin up 20bps to 7.4% (2025: 7.2%) as
the Group benefited from operating leverage on its increased revenues and
synergies from recent business acquisitions.
Statutory operating profit was $1,605m (2025: $1,476m), an increase of 8.7%,
with statutory operating margin of 6.4% (2025: 6.5%). Statutory operating
profit includes higher non-underlying item charges of $234m (2025: $151m),
which are primarily acquisition-related charges of $223m (2025: $141m). A full
list of non-underlying items is included in note 13 (non-GAAP measures).
Net loss on sale and closure of businesses
The Group recognised a net loss of $36m on the sale and closure of businesses
in the prior period as it completed its strategic portfolio review with the
exit from four countries.
Finance costs
Underlying finance costs increased to $166m (2025: $149m) mainly reflecting
the interest on higher net borrowings during the period. On a statutory basis,
finance costs decreased to $128m (2025: $157m) as the higher borrowing costs
are more than offset by non-cash financing items relating to post-employment
benefits and fair value gains on derivatives held for economic hedging
purposes.
Tax expense
Excluding the tax impact of non-underlying items, the underlying effective tax
rate is 25.5% (2025: 25.5%). Statutory profit before tax was $1,472m (2025:
$1,283m) giving rise to an income tax expense of $393m (2025: $357m),
equivalent to an effective tax rate of 26.7% (2025: 27.8%).
Earnings per share
On a constant-currency basis, underlying earnings per share increased by 11.8%
to 72.8c (2025: 65.1c) in line with the higher underlying profit for the
period. Basic earnings per share on a statutory basis was 62.9c (2025: 54.2c),
an increase of 16.1%.
Financial review (continued)
Balance sheet
Liquidity
The Group finances its operations through cash generated by the business and
borrowings from several sources, including banking institutions, the public
and the private placement markets. The Group has developed long-term
relationships with financial counterparties with the balance sheet strength
and credit quality to provide credit facilities as required.
The Group seeks to avoid a concentration of term debt maturities in any one
period to spread its refinancing risk. In January 2026, the Group completed a
€1.5bn ($1.7bn) bond issue comprising two equal tranches maturing in 2029
and 2035 to repay commercial paper issued to fund the acquisition of Vermaat
in December 2025. At 31 March 2026, the average period to maturity of the
Group's principal borrowings is 4.8 years (30 September 2025: 4.8).
The Group's US Private Placement notes contain leverage and interest cover
covenants which are tested semi-annually at 31 March and 30 September. The
leverage covenant test stipulates that consolidated net debt must be less than
or equal to 3.5 times consolidated EBITDA. The interest cover covenant test
stipulates that consolidated EBITDA must be more than or equal to 3 times
consolidated net finance costs. Consolidated EBITDA and net finance costs are
based on the preceding 12 months. At 31 March 2026, the leverage and interest
cover ratios were 1.6 and 17.7, respectively. Net debt, consolidated EBITDA
and net finance costs are subject to certain accounting adjustments for the
purposes of the covenant tests.
At 31 March 2026, the Group had access to $3.6bn (30 September 2025: $5.5bn)
of liquidity, including a $3.2bn (30 September 2025: $3.2bn) Revolving Credit
Facility (RCF) committed to February 2031, which was fully undrawn, and $0.4bn
(30 September 2025: $0.5bn) of cash, net of overdrafts. The Group had a
facility of €1.5bn ($1.8bn) at 30 September 2025 to provide interim
financing for the acquisition of Vermaat which was cancelled following the
bond issue in January. At 31 March 2026, the Group had $1.1bn (30 September
2025: $0.6bn) of commercial paper in issuance which is backed up by the RCF.
The Group's credit ratings remain strong investment grade: Standard &
Poor's A/A-1 long-term/short-term (outlook Stable); and Moody's A2/P-1
long-term/short-term (outlook Stable).
Net debt
Net debt has increased by $2.2bn to $8.6bn (30 September 2025: $6.4bn). The
Group generated $0.8bn of underlying free cash flow, which was more than
offset by net M&A expenditure ($2.3bn) and dividends ($0.7bn). The Group's
leverage policy is to maintain strong investment-grade credit ratings and to
target net debt to underlying EBITDA in the range of 1-1.5. At 31 March 2026,
the ratio of net debt to underlying EBITDA is 1.7 (30 September 2025: 1.4),
outside the target range as expected, due to the level of M&A activity in
the period.
Post-employment benefits
The Group has continued to monitor its pension obligations, working closely
with the trustees and actuaries of its schemes to ensure appropriate
assumptions are used and adequate contributions are made.
At 31 March 2026, the accounting surplus in the Compass Group Pension Plan (UK
Plan) is $305m (30 September 2025: $327m). Approximately 98% of the UK Plan's
liabilities of $1.8bn at 31 March 2026 are covered by an insurance
arrangement.
The deficit in the rest of the Group's defined benefit pension schemes has
increased to $1,420m (30 September 2025: $1,395m). The net deficit in these
schemes is $115m (30 September 2025: $125m), including investments of $1,305m
(30 September 2025: $1,270m) held in respect of unfunded pension schemes and
the US Rabbi Trust arrangements which do not meet the definition of pension
assets under IAS 19 Employee Benefits.
Cash flow
Free cash flow
Free cash flow totalled $710m (2025: $692m). During the period, we made cash
payments relating to acquisitions which are reported as part of operating cash
flow of $105m (2025: $36m). Adjusting for this, and for cash payments of $10m
(2025: $15m) in relation to strategic programmes and the one-off pension
charge, underlying free cash flow was $825m (2025: $743m), with underlying
free cash flow conversion at 66.2% (2025: 67.5%).
Capital expenditure of $838m (2025: $671m) is equivalent to 3.4% (2025: 3.0%)
of revenue. The working capital outflow, excluding provisions and pensions,
was $381m (2025: $356m). Whilst underlying finance costs increased in the
period, the net interest outflow reduced to $126m (2025: $132m) reflecting the
timing of interest payments on new debt. The net tax paid was $383m (2025:
$295m), which is equivalent to an underlying cash tax rate of 22.9% (2025:
20.0%).
Financial review (continued)
Acquisition and disposal of businesses
The Group spent $2,194m (2025: $1,131m) on business acquisitions during the
period, net of cash acquired, including $1,624m on Vermaat in the Netherlands
(including the repayment of acquired borrowings), $270m on Pro Care Management
in Germany, $273m on bolt-on acquisitions and interests in joint ventures and
associates, and $27m of deferred and contingent consideration and other
payments relating to businesses acquired in previous years.
The Group received $24m of disposal proceeds during the period in respect of
businesses sold in previous years. In the prior period, the Group received
$118m in respect of disposal proceeds net of exit costs, which primarily
comprised the sale of businesses in four countries.
Including $105m (2025: $36m) of cash payments relating to acquisitions which
are reported as part of operating cash flow, the total net cash spent on the
acquisition and disposal of businesses is $2,275m (2025: $1,049m).
Dividends paid
Dividends paid represent the 2025 final dividend of $729m.
Foreign exchange translation
The $64m (2025: $90m) gain on foreign exchange translation of net debt
primarily arises in respect of the Group's sterling and euro debt.
Related party transactions
Details of transactions with related parties are set out in note 11 to the
consolidated financial statements. These transactions have not had, and are
not expected to have, a material effect on the financial performance or
position of the Group.
Going concern
The factors considered by the directors in assessing the ability of the Group
to continue as a going concern are discussed on page 21.
The Group has access to considerable financial resources, together with
longer-term contracts with a number of clients and suppliers across different
geographical areas and industries. Consequently, the directors believe that
the Group is well placed to manage its business risks successfully.
Based on the assessment discussed on page 21, the directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for at least the period of 12 months from the date of approval of
the consolidated financial statements. For this reason, they continue to adopt
the going concern basis in preparing the financial statements.
Regional review
Revenue(1) Change
2026 2025 Reported Constant Organic
$m
$m
currency
%
rates
%
%
North America 16,719 15,444 8.3 8.1 7.2
International 8,264 7,124 16.0 9.8 7.1
Total 24,983 22,568 10.7 8.7 7.2
Operating profit Operating margin Underlying Change Underlying
operating profit(2)
operating margin(2)
2026 2025 2026 2025 2026 2025 Constant 2026 2025
$m
$m
%
%
$m
$m
currency
%
%
%
North America 1,336 1,238 8.0 8.0 1,411 1,289 9.5 8.4 8.3
International 345 316 4.2 4.4 504 416 14.5 6.1 5.8
Central activities (76) (78) (76) (78)
Total 1,605 1,476 6.4 6.5 1,839 1,627 11.7 7.4 7.2
1. See footnote 2 on page 7.
2. Alternative Performance Measure (APM) (see pages 34 to 41).
North America - 67% of Group revenue (2025: 68%)
Revenue increased by 8.1% on a constant-currency basis, to $16,719m. Organic
revenue growth of 7.2% was driven by strong levels of net new business,
appropriate levels of pricing and like-for-like volume growth. Client
retention rates remained strong at 97%. Business & Industry continues to
be our fastest growing sector in North America, increasing organic revenue at
a double-digit rate.
Underlying operating profit increased by 9.5% on a constant-currency basis, to
$1,411m, reflecting the organic revenue growth and a 10bps improvement in
underlying operating margin to 8.4%. Statutory operating profit was $1,336m
(2025: $1,238m), with the difference from underlying operating profit
primarily reflecting acquisition-related charges of $73m (2025: $51m).
We continued to strengthen our market position through targeted acquisitions
and spent $0.2bn (net) on M&A in the region during the period. Our North
America acquisition strategy has a particular focus on Canteen, our vending
and unattended market business, where we are continuing to enhance our
capabilities.
International - 33% of Group revenue (2025: 32%)
Revenue increased by 9.8% on a constant-currency basis, to $8,264m. Organic
revenue growth of 7.1% was driven by good net new business growth, appropriate
levels of pricing and increasing like-for-like volumes. Client retention rates
were 95%, significantly higher than our pre-pandemic level. Our strongest
growth was in Sports & Leisure as the Group successfully leveraged its
expertise in North America and the UK in other markets.
Underlying operating profit increased by 14.5% on a constant-currency basis,
to $504m, driven by the organic revenue growth and strong margin progress.
Underlying operating margin increased by 30bps to 6.1% as the region benefited
from operational leverage on the investments it has already made in growth and
synergies from M&A. Statutory operating profit was $345m (2025: $316m),
with the difference from underlying operating profit primarily reflecting
acquisition-related charges of $150m (2025: $90m).
We are continuing to invest in acquisitions to further enhance our
capabilities in the region, spending $2.1bn (net) during the period, mainly on
Vermaat in the Netherlands and Pro Care Management in Germany.
Risk management
The Board takes a proactive approach to risk management aimed at protecting
the Group's employees, clients and consumers and safeguarding the interests of
the Company and its shareholders in a constantly changing environment.
Risk management is an essential element of business governance. The Group has
policies, processes and procedures to ensure risks are identified, evaluated
and managed appropriately. Identifying and managing risks and opportunities,
developing action plans, and monitoring progress against agreed Key
Performance Indicators (KPIs) are integral to business processes and core
activities throughout the Group.
Principal risks
Details of the principal risks facing the Group and mitigating actions are
included on pages 21 to 24 of the 2025 Annual Report. Those risks and
uncertainties are unchanged at the date of this Announcement, with the
exception of the escalation of the geopolitical and economic volatility risks.
A description of the principal risks is set out below.
Food safety
Compass Group companies feed millions of consumers every day. This means
setting the highest food hygiene and safety standards is paramount. Safety
breaches could cause serious business interruption and result in criminal
and/or civil prosecution, increased costs, and reputational damage.
Occupational safety
Compass Group companies employ hundreds of thousands of people globally. The
safety of employees, consumers, suppliers and third-parties is a priority.
Failure to comply with workplace safety standards can result in injuries and
potentially cause operational disruptions, adverse financial and legal
consequences, and reputational damage.
Pandemic
The Group's operations were significantly disrupted by the global COVID-19
pandemic and associated containment measures. Compass recovered well and
learned from the pandemic, and this risk has diminished. The outbreak of
another pandemic could cause further business risk.
Talent
Attracting, retaining and motivating the best people with the right skills, at
all levels of the organisation, is key to the long-term success of the Group,
and changes to economic conditions may increase the risk of attrition at all
levels.
Sales and retention
The Group's growth ambitions rely on driving positive net new business
sustainably by securing and retaining a diverse range of clients. The Group's
operating companies contract with a large number of clients. Failure to comply
with contractual terms, including proper delivery of services, could lead to
the loss of business and/or claims.
Potential loss of material client contracts and the inability to secure
additional new contracts in a competitive market is a risk to Compass'
businesses, as are the emergence of new industry participants and traditional
competition using disruptive technology.
Geopolitical
Geopolitical risks are elevated with the conflict in the Middle East and the
Russia-Ukraine war. These factors contribute to risks such as economic
volatility, including cost inflation and cyber-security threats.
Economic volatility
Certain sectors of Compass' business could be susceptible to negative shifts
in the economy and employment rates. Whilst Compass has strategically exited a
number of countries with high economic volatility and has no direct exposure
to the Middle East, the recent global market instability has increased the
potential risks of economic volatility in our primary markets.
Climate change
Climate change may cause food insecurity, sourcing and supply chain issues in
some of the Group's markets, which could affect the availability of some food
products, and potentially may lead to food cost inflation.
Risk management (continued)
Principal risks (continued)
Business ethics and integrity
Ineffective compliance management systems, a weakly embedded business
integrity culture or serious breaches of our policies, relevant laws, or
regulations (including but not limited to anti-bribery and corruption,
anti-competitive behaviour, fraud, money laundering, tax evasion, trade and
economic sanctions, human rights and modern slavery, and data protection),
could expose Compass to civil and/or criminal proceedings leading to
significant fines, sanctions, financial loss and reputational damage.
Regulatory expectations and new laws in these areas continue to evolve across
jurisdictions, with an increasing emphasis on corporate enforcement,
accountability and supply chain resilience.
The democratisation of generative AI has given widespread access to powerful
online AI services for content creation. This opportunity presents several
emerging risks including breach of data confidentiality and data privacy, and
other intellectual property-related risks.
Cyber-security
The digital world presents risks for global businesses including, but not
limited to, technology failures, loss of confidential data, data privacy
breaches and damage to brand reputation through, for example, the increased
threat of cyber attacks, and the widespread use and instantaneous nature of
social media.
Disruption caused by the failure of key software applications, security
controls, or underlying infrastructure, or disruption caused by cyber attacks,
could impact day-to-day operations and management decision making or result in
regulatory fines, other sanctions and/or third-party claims.
A combination of geopolitical instability and the accessibility of
sophisticated AI-enabled tools and techniques has contributed to an increase
in the risk of phishing and malware attacks, including ransomware, across all
industries.
Responsibility statement of the directors in respect of the half-yearly
financial report
The Interim Report complies with the Disclosure Guidance and Transparency
Rules (DTR) of the United Kingdom's Financial Conduct Authority in respect of
the requirement to produce a half-yearly financial report. The Interim
Management Report is the responsibility of, and has been approved by, the
directors.
We confirm that to the best of our knowledge:
• the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for use in the
UK and gives a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group; and
• the Interim Management Report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
The directors have permitted the auditor to undertake whatever inspections it
considers to be appropriate for the purpose of enabling the auditor to conduct
its review.
On behalf of the Board
Dominic Blakemore Petros Parras
Group Chief Executive Officer Group Chief Financial Officer
10 May 2026
Compass Group PLC
Independent review report to Compass Group PLC
Conclusion Directors' responsibilities
We have been engaged by Compass Group PLC ("the Company") to review the The half-yearly financial report is the responsibility of, and has been
condensed set of financial statements in the half-yearly financial report for approved by, the directors. The directors are responsible for preparing the
the six months ended 31 March 2026 which comprises the condensed consolidated half-yearly financial report in accordance with the DTR of the UK FCA.
income statement, the condensed consolidated statement of comprehensive
income, the condensed consolidated statement of changes in equity, the As disclosed in note 1, the annual financial statements of the Group are
condensed consolidated balance sheet, the condensed consolidated cash flow prepared in accordance with UK-adopted international accounting standards.
statement and the related explanatory notes.
The directors are responsible for preparing the condensed set of financial
Based on our review, nothing has come to our attention that causes us to statements included in the half-yearly financial report in accordance with IAS
believe that the condensed set of financial statements in the half-yearly 34 as adopted for use in the UK.
financial report for the six months ended 31 March 2026 is not prepared, in
all material respects, in accordance with IAS 34 Interim Financial Reporting In preparing the condensed set of financial statements, the directors are
as adopted for use in the UK and the Disclosure Guidance and Transparency responsible for assessing the Group's ability to continue as a going concern,
Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
Basis for conclusion liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the Our responsibility
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK.
A review of interim financial information consists of making enquiries, Our responsibility is to express to the Company a conclusion on the condensed
primarily of persons responsible for financial and accounting matters, and set of financial statements in the half-yearly financial report based on our
applying analytical and other review procedures. We read the other information review. Our conclusion, including our conclusions relating to going concern,
contained in the half-yearly financial report and consider whether it contains are based on procedures that are less extensive than audit procedures, as
any apparent misstatements or material inconsistencies with the information in described in the Basis for conclusion section of this report.
the condensed set of financial statements.
The purpose of our review work and to whom we owe our responsibilities
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable This report is made solely to the Company in accordance with the terms of our
us to obtain assurance that we would become aware of all significant matters engagement to assist the Company in meeting the requirements of the DTR of the
that might be identified in an audit. Accordingly, we do not express an audit UK FCA. Our review has been undertaken so that we might state to the Company
opinion. those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
Conclusions relating to going concern responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report, Jonathan Downer
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that for and on behalf of KPMG LLP
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed. Chartered Accountants
15 Canada Square
This conclusion is based on the review procedures performed in accordance with
London
ISRE (UK) 2410. However, future events or conditions may cause the Group to
E14 5GL
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation. 10 May 2026
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated income statement
For the six months ended 31 March 2026
Six months ended 31 March
Notes 2026 2025
$m
$m
Revenue 2 24,983 22,568
Operating costs 3 (23,400) (21,111)
Operating profit before joint ventures and associates 1,583 1,457
Share of results of joint ventures and associates 22 19
Operating profit 2 1,605 1,476
Net loss on sale and closure of businesses 9 (5) (36)
Finance income 105 56
Finance expense (233) (213)
Finance costs (128) (157)
Profit before tax 1,472 1,283
Income tax expense 4 (393) (357)
Profit for the period 1,079 926
Attributable to
Equity shareholders 1,069 919
Non-controlling interests 10 7
Profit for the period 1,079 926
Basic earnings per share 5 62.9c 54.2c
Diluted earnings per share 5 62.9c 54.1c
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated statement of comprehensive income
For the six months ended 31 March 2026
Six months ended 31 March
2026 2025
$m
$m
Profit for the period 1,079 926
Other comprehensive income
Items that will not be reclassified to the income statement
Remeasurement of post-employment benefit obligations 60 204
Return on plan assets, excluding interest income (8) (327)
Change in asset ceiling, excluding interest income (16) (1)
Change in fair value of financial assets at fair value through other (54) (35)
comprehensive income
Tax credit on items relating to the components of other comprehensive income 8 41
(10) (118)
Items that may be reclassified to the income statement
Currency translation differences(1) (48) (106)
Change in fair value of financial assets at fair value through other (6) (8)
comprehensive income
Reclassification of cumulative currency translation differences on sale of - 69
businesses
(54) (45)
Total other comprehensive loss for the period (64) (163)
Total comprehensive income for the period 1,015 763
Attributable to
Equity shareholders 1,005 756
Non-controlling interests 10 7
Total comprehensive income for the period 1,015 763
1. Includes a loss of $92m (2025: $61m) in relation to the effective portion
of net investment hedges.
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated statement of changes in equity
For the six months ended 31 March 2026
Attributable to equity shareholders
Notes Share Share premium Other reserves Retained earnings Non-controlling interests Total
capital
equity
$m $m $m $m
$m $m
At 1 October 2025 346 317 4,688 2,302 107 7,760
Profit for the period - - - 1,069 10 1,079
Other comprehensive income
Remeasurement of post-employment benefit obligations - - - 60 - 60
Return on plan assets, excluding interest income - - - (8) - (8)
Change in asset ceiling, excluding interest income - - - (16) - (16)
Change in fair value of financial assets at fair value through other - - - (60) - (60)
comprehensive income
Currency translation differences - - (48) - - (48)
Tax credit on items relating to the components of other comprehensive income - - - 8 - 8
Total other comprehensive loss for the period - - (48) (16) - (64)
Total comprehensive (loss)/income for the period - - (48) 1,053 10 1,015
Fair value of share-based payments - - - 46 - 46
Change in fair value of non-controlling interest put options - - (23) - - (23)
Changes to non-controlling interests due to acquisitions and disposals - - (4) - 14 10
Reclassification of non-controlling interest put options reserve on exercise - - 1 - (1) -
of put options
Cost of shares transferred to employees - - 65 (65) - -
Purchase of own shares - share-based payment plans - - (17) - - (17)
Employee contributions in respect of share‑based payment plans - - 17 - - 17
Tax charge on items taken directly to equity - - - (1) - (1)
346 317 4,679 3,335 130 8,807
Dividends paid to equity shareholders 6 - - - (729) - (729)
Dividends paid to non-controlling interests - - - - (5) (5)
At 31 March 2026 346 317 4,679 2,606 125 8,073
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated statement of changes in equity
For the six months ended 31 March 2026
Attributable to equity shareholders
Notes Share Share premium Other reserves Retained earnings Non-controlling interests Total
capital
equity
$m $m $m $m
$m $m
At 1 October 2024 346 317 4,592 1,574 77 6,906
Profit for the period - - - 919 7 926
Other comprehensive income
Remeasurement of post-employment benefit obligations - - - 204 - 204
Return on plan assets, excluding interest income - - - (327) - (327)
Change in asset ceiling, excluding interest income - - - (1) - (1)
Change in fair value of financial assets at fair value through other - - - (43) - (43)
comprehensive income
Currency translation differences - - (106) - - (106)
Reclassification of cumulative currency translation differences on sale of - - 69 - - 69
businesses
Tax credit on items relating to the components of other comprehensive income - - - 41 - 41
Total other comprehensive loss for the period - - (37) (126) - (163)
Total comprehensive (loss)/income for the period - - (37) 793 7 763
Fair value of share-based payments - - - 40 - 40
Change in fair value of non-controlling interest put options - - (2) - - (2)
Changes to non-controlling interests due to acquisitions and disposals - - - - 5 5
Cost of shares transferred to employees - - 71 (71) - -
Purchase of own shares - share buyback - - 4 - - 4
Tax credit on items taken directly to equity - - - 8 - 8
346 317 4,628 2,344 89 7,724
Dividends paid to equity shareholders 6 - - - (670) - (670)
Dividends paid to non-controlling interests - - - - (2) (2)
At 31 March 2025 346 317 4,628 1,674 87 7,052
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated balance sheet
At 31 March 2026
At 31 March 2026 At 30 September 2025
$m
$m
Non-current assets
Goodwill 8,957 7,687
Other intangible assets 5,126 3,999
Costs to obtain and fulfil contracts 1,683 1,665
Right-of-use assets 1,445 1,377
Property, plant and equipment 1,733 1,569
Interests in joint ventures and associates 231 209
Other investments 1,373 1,330
Post-employment benefit assets 305 327
Trade and other receivables 421 416
Deferred tax assets 220 246
Derivative financial instruments 85 97
Non-current assets 21,579 18,922
Current assets
Inventories 855 820
Trade and other receivables 6,739 6,350
Tax recoverable 40 44
Cash and cash equivalents 523 575
Derivative financial instruments 38 4
Current assets 8,195 7,793
Total assets 29,774 26,715
Current liabilities
Borrowings (1,815) (1,043)
Lease liabilities (364) (338)
Derivative financial instruments (41) (13)
Provisions (420) (388)
Current tax liabilities (237) (244)
Trade and other payables (8,857) (8,639)
Current liabilities (11,734) (10,665)
Non-current liabilities
Borrowings (5,675) (4,383)
Lease liabilities (1,277) (1,228)
Derivative financial instruments (106) (89)
Post-employment benefit obligations (1,420) (1,395)
Provisions (359) (355)
Deferred tax liabilities (492) (276)
Trade and other payables (638) (564)
Non-current liabilities (9,967) (8,290)
Total liabilities (21,701) (18,955)
Net assets 8,073 7,760
Equity
Share capital 346 346
Share premium 317 317
Other reserves 4,679 4,688
Retained earnings 2,606 2,302
Total equity shareholders' funds 7,948 7,653
Non-controlling interests 125 107
Total equity 8,073 7,760
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated cash flow statement
For the six months ended 31 March 2026
Six months ended 31 March
Notes 2026 2025
$m
$m
Cash flow from operating activities
Cash generated from operations 7 2,122 1,782
Interest paid (151) (151)
Tax received 6 2
Tax paid (389) (297)
Net cash flow from operating activities 1,588 1,336
Cash flow from investing activities
Purchase of subsidiary companies 9 (1,514) (986)
Purchase of interests in joint ventures and associates (32) -
Net proceeds from sale of subsidiary companies, joint ventures and associates 24 118
net of exit costs(1)
Purchase of intangible assets (251) (167)
Purchase of contract fulfilment assets (211) (174)
Purchase of property, plant and equipment (345) (245)
Proceeds from sale of property, plant and equipment/intangible assets/contract 45 23
fulfilment assets
Purchase of other investments (10) (30)
Net proceeds/(payments) from sale of other investments 2 (27)
Dividends received from joint ventures and associates 25 18
Interest received 25 19
Net cash flow from investing activities (2,242) (1,451)
Cash flow from financing activities
Purchase of own shares - share buyback - (115)
Purchase of own shares - share-based payment plans (17) -
Employee contributions in respect of share‑based payment plans 2 -
Increase in borrowings(2) 2,174 1,279
Repayment of borrowings - (108)
Repayment of borrowings acquired through business acquisitions 9 (648) (145)
Net cash flow from derivative financial instruments (67) (53)
Repayment of principal under lease liabilities (161) (125)
Dividends paid to equity shareholders 6 (729) (670)
Dividends paid to non-controlling interests (5) (2)
Net cash flow from financing activities 549 61
Cash and cash equivalents
Net decrease in cash and cash equivalents (105) (54)
Cash and cash equivalents at 1 October 512 593
Currency translation gains/(losses) on cash and cash equivalents 27 (8)
Cash and cash equivalents at 31 March 434 531
Cash and cash equivalents(3) 523 653
Bank overdrafts(3) (89) (122)
Cash and cash equivalents at 31 March 434 531
1. 2026 includes $4m of tax payments arising on the disposal of businesses.
2. 2026 includes the proceeds of a bond issue of $1,725m (see page 8) and
commercial paper of $449m.
3. As per the consolidated balance sheet.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2026
1 Basis of preparation
Introduction
The unaudited condensed consolidated financial statements for the six months
ended 31 March 2026:
• have been prepared in accordance with UK-adopted International Accounting
Standard (IAS) 34 Interim Financial Reporting and the Disclosure Guidance and
Transparency Rules sourcebook of the UK's Financial Conduct Authority;
• apply the accounting policies and presentation that were applied in the
preparation of the Company's published consolidated financial statements for
the year ended 30 September 2025;
• do not comprise statutory accounts for the purpose of Section 434 of the
Companies Act 2006;
• should be read in conjunction with the Annual Report for the year ended
30 September 2025; and
• were approved by the Board on 10 May 2026.
The comparative figures for the year ended 30 September 2025 are not the
Group's statutory accounts for that financial year. Those financial statements
have been reported on by the Group's auditor and delivered to the Registrar of
Companies. The report of the auditor was unqualified, did not include a
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying its report and did not contain statements under
Section 498 (2) or (3) of the Companies Act 2006.
The annual financial statements of the Group will be prepared in accordance
with UK-adopted International Accounting Standards.
Going concern
The directors consider it appropriate to prepare the financial statements on a
going concern basis for the reasons stated below.
At 31 March 2026, the Group's financing arrangements included Eurobonds
($6.0bn), US Private Placement (USPP) notes ($0.3bn) and commercial paper
($1.1bn). The Group also had a Revolving Credit Facility (RCF) of $3.2bn,
committed to February 2031, which backs up the commercial paper and was fully
undrawn, together with $0.4bn of cash, net of overdrafts. The USPP notes are
subject to leverage and interest cover covenants which are tested on 31 March
and 30 September each year. The Group met both covenants at 31 March 2026. The
liquidity position of the Group has remained substantially unchanged at the
date of approving the consolidated financial statements.
The directors have prepared monthly cash flow projections for a period of 12
months from the date of approval of the consolidated financial statements
(assessment period). There are two term debt maturities in the assessment
period, a £250m ($331m) Eurobond in June 2026 and the $300m USPP notes in
December 2026. The latest maturity date of the commercial paper outstanding at
31 March 2026 is June 2026. No refinancing of debt is assumed in the going
concern assessment. The cash flow projections show that the Group has
significant headroom against its committed facilities and meets its financial
covenant obligations under the USPP notes. A stress test has been used to
determine the performance level that would result in a reduction in headroom
against the committed facilities to nil or a breach of the covenants. The
Group's committed facilities would be reached if underlying operating profit
reduced by more than 65%, which the directors do not consider to be likely
based on recent trading performance. The stress test assumes no new business
acquisitions as the only mitigating action.
Consequently, the directors are confident that the Group will have sufficient
funds to continue to meet its liabilities as they fall due for at least the
period of 12 months from the date of approval of the consolidated financial
statements and, therefore, have prepared the financial statements on a going
concern basis.
Changes in accounting policies
IFRS 18 Presentation and Disclosure in Financial Statements, which is
effective from 2028, replaces IAS 1 Presentation of Financial Statements and
will result in changes to the presentation and disclosure of the Group's
financial performance, with no impact on net profit, net assets or cash flows.
There are a number of other changes to accounting standards, effective in
future years, which are not expected to significantly impact the Group's
consolidated financial statements.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
1 Basis of preparation (continued)
Judgements
The preparation of the consolidated financial statements requires management
to make judgements in respect of the application of its accounting policies
which impact the reported amounts of assets, liabilities, income and expenses.
Whilst there are no judgements that management considers to be critical in the
preparation of these financial statements, there is a significant judgement in
respect of the classification of cash payments relating to contract fulfilment
assets in the cash flow statement.
With the exception of contract fulfilment assets, cash payments in respect of
contract balances are classified as cash flows from operating activities. The
Group classifies additions to contract fulfilment assets as cash flows from
investing activities as they arise from cash payments in relation to assets
that will generate long-term economic benefits. During the period, the
purchase of contract fulfilment assets classified as cash flows from investing
activities was $211m (2025: $174m).
Estimates
The preparation of the consolidated financial statements requires management
to make estimates which impact the reported amounts of assets, liabilities,
income and expenses. These estimates are based on historical experience and
other factors that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates.
Major sources of estimation uncertainty
The Group's major source of estimation uncertainty is in relation to goodwill
in the UK cash-generating unit on the basis that a reasonably possible change
in key assumptions could have a material effect on the carrying amount in the
next 12 months.
Other sources of estimation uncertainty
In addition to the major source of estimation uncertainty, tax, acquisition
intangibles and post-employment benefit obligations have been identified as
other sources of estimation uncertainty. Whilst not considered to be major
sources of uncertainty as defined by IAS 1 Presentation of Financial
Statements, the recognition and measurement of certain material assets and
liabilities are based on assumptions and/or are subject to longer-term
uncertainties.
Climate change
Climate change is identified as a principal risk as it may cause food
insecurity, sourcing and supply chain issues in some of the Group's markets.
The Group has a commitment to reach climate net zero greenhouse gas (GHG)
emissions across its global operations and value chain by 2050. The potential
impact of climate change and the Group's net zero commitments on the following
areas has been considered: going concern; tax; goodwill; and other intangible
assets. There was no impact on the reported amounts in the financial
statements as a result of this review.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
2 Segmental analysis
The segmental information presented is consistent with management reporting
provided to the Executive Committee (the chief operating decision maker). The
Executive Committee monitors the revenue and underlying operating profit of
the Group's two geographical segments, North America and International, to
assess performance and allocate resources. The Group also has a separate
segment for central activities which includes costs in respect of central
functions, including finance, legal, commercial, IT and human resources.
Underlying operating profit is reconciled to the GAAP measure below. Finance
costs and income tax expense are managed on a Group basis.
Geographical segments
Revenue by sector and geographical segment1,2 North America International Total
$m $m $m
Six months ended 31 March 2026
Business & Industry 6,091 3,787 9,878
Healthcare & Senior Living 4,420 1,154 5,574
Education 3,753 1,102 4,855
Sports & Leisure 2,282 1,043 3,325
Defence, Offshore & Remote 173 1,178 1,351
Revenue3,4 16,719 8,264 24,983
Six months ended 31 March 2025
Business & Industry 5,364 3,225 8,589
Healthcare & Senior Living 4,245 996 5,241
Education 3,525 1,011 4,536
Sports & Leisure 2,158 787 2,945
Defence, Offshore & Remote 152 1,105 1,257
Revenue(3,4) 15,444 7,124 22,568
1. There is no inter-segment trading.
2. An analysis of revenue recognised over time and at a point in time is not
provided on the basis that the nature, amount, timing and uncertainty of
revenue and cash flows are considered to be similar.
3. Revenue arising in the UK, the Group's country of domicile, was $2,200m
(2025: $1,958m). Revenue arising in the US region was $15,872m (2025:
$14,675m). Revenue arising in all countries outside the UK from which the
Group derives revenue was $22,783m (2025: $20,610m).
4. With effect from 1 October 2025, the Executive Committee has monitored the
statutory revenue rather than the underlying revenue of its two geographical
segments. Underlying revenue was previously defined as statutory revenue plus
share of revenue of joint ventures. Following the recent strategic exits from
non-core countries, joint ventures are not significant to the Group. The share
of revenue of joint ventures in the period is $27m (2025: $28m). Comparative
segmental financial information for 2025 has been re-presented.
Geographical segments
Profit by geographical segment North America International Central Total
$m
$m
$m
activities
$m
Six months ended 31 March 2026
Underlying operating profit/(loss) before results of joint ventures and 1,397 496 (76) 1,817
associates
Add: Share of profit before tax of joint ventures 1 - - 1
Add: Share of results of associates 13 8 - 21
Underlying operating profit/(loss)1 1,411 504 (76) 1,839
Less: Acquisition-related charges2 (73) (150) - (223)
Less: Charges related to the strategic portfolio review(2) (2) (9) - (11)
Operating profit/(loss) 1,336 345 (76) 1,605
Net loss on sale and closure of businesses2 (5)
Finance costs (128)
Profit before tax 1,472
Income tax expense (393)
Profit for the period 1,079
1. Operating profit excluding specific adjusting items (see note 13).
2. Specific adjusting item (see note 13).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
2 Segmental analysis (continued)
Geographical segments
Profit by geographical segment North America International Central Total
$m
$m
$m
activities
$m
Six months ended 31 March 2025
Underlying operating profit/(loss) before results of joint ventures and 1,278 408 (78) 1,608
associates
Add: Share of results of associates 11 8 - 19
Underlying operating profit/(loss)1 1,289 416 (78) 1,627
Less: Acquisition-related charges2 (51) (90) - (141)
Less: Charges related to the strategic portfolio review(2) - (8) - (8)
Less: One-off pension charge(2) - (2) - (2)
Operating profit/(loss) 1,238 316 (78) 1,476
Net loss on sale and closure of businesses2 (36)
Finance costs (157)
Profit before tax 1,283
Income tax expense (357)
Profit for the period 926
1. Operating profit excluding specific adjusting items (see note 13).
2. Specific adjusting item (see note 13).
3 Operating costs
Six months ended 31 March
Operating costs Notes 2026 2025
$m
$m
Cost of inventories consumed 6,761 6,178
Employee remuneration 11,839 10,739
Commissions and fees paid to clients 888 802
Amortisation - other intangible assets 98 85
Amortisation - contract fulfilment assets 183 166
Depreciation - right-of-use assets 154 122
Depreciation - property, plant and equipment 244 194
Acquisition-related charges(1) 13 223 141
Charges related to the strategic portfolio review(1) 13 11 8
Other 2,999 2,676
Total 23,400 21,111
1. Specific adjusting item (see note 13).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
4 Tax
Six months ended 31 March
Income tax expense 2026 2025
$m
$m
Current tax
Current period 388 340
Adjustment in respect of prior years (16) (15)
Current tax expense 372 325
Deferred tax
Current period 21 32
Deferred tax charge 21 32
Total 393 357
The income tax expense for the period is based on the effective UK statutory
rate of corporation tax for the period of 25% (2025: 25%). Overseas tax is
calculated at the rates prevailing in the respective jurisdictions.
The tax position in each country in which the Group operates is often not
agreed with the tax authorities until some time after the relevant period end
and, if subject to a tax audit, may be open for an extended period. In these
circumstances, the recognition of tax liabilities and assets requires
management estimation to reflect a variety of factors, including historical
experience, interpretations of tax law and the likelihood of settlement.
The international corporate tax environment remains complex and the sustained
increase in audit activity from tax authorities means that the potential for
tax uncertainties and disputes remains high. Where the final tax outcome of
these matters is different from the amounts that were initially recorded, such
differences will impact the results in the year in which such determination is
made. In addition, the calculation and recognition of temporary differences
giving rise to deferred tax assets requires estimates to be made of the extent
to which future taxable profits are available against which these temporary
differences can be utilised.
The Group is currently subject to audits and reviews in a number of countries
that primarily relate to complex corporate tax issues. The Group does not
currently anticipate any material changes to the amounts recorded at 31 March
2026.
Most of the Group's tax losses and other temporary differences recognised as
deferred tax assets do not have an expiry date. The recognition of net
deferred tax assets is based on the most recent financial budgets and
forecasts approved by management.
Deferred tax assets have not been recognised in respect of tax losses of $102m
(30 September 2025: $102m) and other temporary differences of $13m (30
September 2025: $13m). These deferred tax assets have not been recognised as
the timing of recovery is uncertain.
The legislation implementing the Pillar Two Model Rules in the UK applied to
the Group from 1 October 2024. The Group is monitoring the status of
implementation of the model rules worldwide. The impact on the Group's
effective tax rate is not material. The temporary exception under IAS 12
Income Taxes has been applied in relation to the accounting for deferred taxes
arising from the implementation of the Pillar Two Model Rules.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
5 Earnings per share
Six months ended 31 March
Profit for the period attributable to equity shareholders 2026 2025
$m
$m
Profit for the period attributable to equity shareholders 1,069 919
Six months ended 31 March
Weighted average number of ordinary shares 2026 2025
Ordinary shares of 111/20p each millions
Ordinary shares of
111/20p each millions
Weighted average number of ordinary shares for basic earnings per share 1,699 1,697
Dilutive effect of share-based payment plans - 1
Weighted average number of ordinary shares for diluted earnings per share 1,699 1,698
Six months ended 31 March
Earnings per share 2026 2025
cents
cents
Basic 62.9 54.2
Diluted 62.9 54.1
6 Dividends
The interim dividend of 25.5c per share (2025: 22.6c per share), $433m in
aggregate(1), is payable on 30 July 2026 to shareholders on the register at
the close of business on 19 June 2026. Other important dates to note are shown
on page 2. The dividend will be paid gross and a Dividend Reinvestment Plan
(DRIP) will be available. Shareholders appearing on the Register of Members or
holding their shares through CREST will automatically receive their dividends
in sterling, but have the option to elect to receive their dividends in US
dollars. For shares held in certificated form on the register, US dollar
elections can be made by contacting our share registrar, MUFG Corporate
Markets. MUFG's contact details can be found on our website under Dividend
Information.
The interim dividend was approved by the Board after the balance sheet date
and, therefore, it has not been reflected as a liability in the interim
financial statements.
Six months ended Six months ended
31 March 2026
31 March 2025
Dividends on ordinary shares Dividends $m Dividends $m
per share
per share
cents
cents
Amounts recognised as distributions to equity shareholders during the period
Final 2024 - - 39.1 670
Final 2025 43.3 729 - -
Total 43.3 729 39.1 670
1. Based on the number of ordinary shares in issue at 31 March 2026 excluding
shares held in treasury and the Compass Group PLC All Share Schemes Trust
(1,700m shares).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
7 Reconciliation of operating profit to cash generated from operations
Six months ended 31 March
Reconciliation of operating profit to cash generated from operations 2026 2025
$m
$m
Operating profit before joint ventures and associates 1,583 1,457
Adjustments for:
Acquisition-related charges1 163 109
Charges related to the strategic portfolio review 11 8
One-off pension charge - 2
Amortisation - other intangible assets(2) 98 85
Amortisation - contract fulfilment assets 183 166
Amortisation - contract prepayments 72 51
Depreciation - right-of-use assets 154 122
Depreciation - property, plant and equipment 244 194
Unwind of costs to obtain contracts 23 18
(Gain)/loss on disposal of property, plant and equipment/intangible (1) 5
assets/contract fulfilment assets
Other non-cash changes (1) (1)
Increase in provisions 22 13
Investment in contract prepayments (76) (108)
Increase in costs to obtain contracts3 (30) (26)
Post-employment benefit obligations net of service costs 12 3
Share-based payments - charged to profit 46 40
Operating cash flow before movements in working capital 2,503 2,138
Increase in inventories (29) (40)
Increase in receivables (284) (72)
Decrease in payables (68) (244)
Cash generated from operations 2,122 1,782
1. Includes amortisation and impairment of acquisition intangibles. Excludes
acquisition transaction costs of $60m (2025: $32m) as acquisition transaction
costs are included in net cash flow from operating activities.
2. Excludes amortisation of acquisition intangibles.
3. Cash payments in respect of contract balances are classified as cash flows
from operating activities, with the exception of contract fulfilment assets
which are classified as cash flows from investing activities as they arise out
of cash payments in relation to assets that will generate long-term economic
benefits. During the six months ended 31 March 2026, the purchase of contract
fulfilment assets classified as cash flows from investing activities was $211m
(2025: $174m).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
8 Financial instruments
Certain of the Group's financial instruments are held at fair value.
The fair value of a financial instrument is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the balance sheet date.
The fair value measurement hierarchy is as follows:
• Level 1: Quoted prices (unadjusted) in active markets for identical
assets or liabilities
• Level 2: Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices)
• Level 3: Inputs for the asset or liability that are not based on
observable market data (i.e. unobservable inputs)
There were no transfers of financial instruments between levels of the fair
value hierarchy in either the six months ended 31 March 2026 or 2025. The
carrying amounts of financial instruments measured at fair value are shown in
the table below:
Financial instruments measured at fair value Level At At
31 March
30 September 2025
2026
$m
$m
Non-current
Rabbi Trust investments(1) 1 1,215 1,181
Mutual fund investments(1) 1 52 57
Life insurance policies(1) 2 38 32
Derivative financial instruments - assets 2 85 97
Derivative financial instruments - liabilities 2 (106) (89)
Trade investments1 3 61 53
Other investments1 3 7 7
Contingent consideration payable on business acquisitions(2) 3 (147) (104)
Non-controlling interest put options2 3 (136) (119)
Current
Money market funds3 1 2 1
Derivative financial instruments - assets 2 38 4
Derivative financial instruments - liabilities 2 (41) (13)
Contingent consideration payable on business acquisitions(2) 3 (106) (110)
Non-controlling interest put options2 3 (14) -
1. Classified as other investments in the consolidated balance sheet.
2. Classified as trade and other payables in the consolidated balance sheet.
3. Classified as cash and cash equivalents in the consolidated balance sheet
on the basis that they have a maturity of three months or less from the date
of acquisition.
Due to the variability of the valuation factors, the fair values presented at
31 March 2026 may not be indicative of the amounts the Group would expect to
realise in the current market environment. The fair values of financial
instruments at levels 2 and 3 of the fair value hierarchy have been determined
based on the valuation methodologies listed below:
Level 2
Life insurance policies Cash surrender values provided by third-party
insurance providers.
Derivative financial instruments Present values determined from future cash
flows discounted at rates derived from market-sourced data. The fair values of
derivative financial instruments represent the maximum credit exposure.
Level 3
Trade and other investments Estimated values using income and market value
approaches.
Contingent consideration payable on business acquisitions Estimated amounts
payable based on the likelihood of specified conditions, such as earnings
targets, being met.
Non-controlling interest put options Estimated amounts payable based on the
likelihood of options being exercised by minority shareholders.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
8 Financial instruments (continued)
A reconciliation from opening to closing balances for Level 3 financial
instruments is as follows:
Six months ended 31 March 2026 Six months ended 31 March 2025
Level 3 financial instruments Trade investments Contingent consideration payable on business acquisitions Non- Trade investments Contingent consideration payable on business acquisitions Non-
$m
$m
$m
$m
controlling interest put options
controlling interest put options
$m
$m
At 1 October 53 (214) (119) 29 (352) (70)
Change in fair value recognised in the income statement - (13) - - - -
Change in fair value recognised in the statement of comprehensive income - - - (3) - -
Change in fair value recognised in the statement of changes in equity - - (23) - - (2)
Additions 8 (44) (9) 30 (41) (7)
Disposals - - - (3) - -
Payments relating to businesses acquired in previous years - 23 - - 140 -
Net present value adjustments - (7) - - (6) -
Currency translation - 2 1 - 9 3
At 31 March 61 (253) (150) 53 (250) (76)
The directors do not consider that any reasonably possible changes in the key
assumptions would cause the fair value of the Level 3 financial instruments to
be materially higher or lower.
With the exception of borrowings, the carrying amounts of financial
instruments measured at amortised cost approximate to their fair values.
Borrowings are measured at amortised cost unless they are part of a fair value
hedge, in which case amortised cost is adjusted for the fair value
attributable to the risk being hedged. The carrying amount of borrowings at
31 March 2026 is $7,490m (30 September 2025: $5,426m). The fair value of
borrowings at 31 March 2026, calculated by discounting future cash flows to
net present values at current market rates for similar financial instruments
(Level 2 inputs), is $7,490m (30 September 2025: $5,479m).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
9 Acquisition, sale and closure of businesses
Acquisition of businesses
The total cash spent on the acquisition of subsidiaries during the six months
ended 31 March 2026, net of cash acquired, was $2,216m (2025: $1,167m),
including $648m (2025: $145m) on the repayment of borrowings acquired through
business acquisitions, $27m (2025: $146m) of deferred and contingent
consideration and other payments relating to businesses acquired in previous
years, and $54m (2025: $36m) of acquisition transaction costs included in net
cash flow from operating activities.
The Group made two individually material acquisitions during the six months
ended 31 March 2026 (Vermaat and Pro Care Management). These acquisitions did
not have a material impact on the Group's revenue or profit for the period. If
the acquisitions had occurred on 1 October 2025, they would not have had a
material impact on the Group's revenue or profit for the period.
For Vermaat and Pro Care Management, the acquired intangible assets were
valued by independent valuation experts. Brands and computer software are
valued using the relief from royalty method, with the key assumptions being
forecast revenue, royalty rate, useful life and discount rate, and client
contracts are valued using the multi-period excess earnings method, with the
key assumptions being forecast operating profit, attrition rate, useful life
and discount rate.
Detailed disclosures in respect of these acquisitions are provided below.
Vermaat
On 15 December 2025, the Group acquired 100% of the issued share capital of
Vincent Topco B.V. (trading as Vermaat), a premium food services business in
the Netherlands, for cash consideration of €833m ($978m) net of cash
acquired. The cash consideration excludes third-party debt acquired and repaid
on the date of acquisition of €550m ($646m).
The fair value of net assets acquired includes $820m in respect of other
intangible assets which mainly relates to brands ($60m) and client contracts
($757m).
Pro Care Management
On 27 February 2026, the Group acquired 100% of the issued share capital of
Pro Care Management GmbH, a food Group Purchasing Organisation in Germany, for
cash consideration of €229m ($270m) net of cash acquired.
The fair value of net assets acquired includes $168m in respect of other
intangible assets which relates to brands ($11m), client contracts ($89m) and
computer software ($68m).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
9 Acquisition, sale and closure of businesses (continued)
Acquisition of businesses (continued)
All acquisitions
A summary of the Vermaat and Pro Care Management acquisitions, together with
all acquisitions completed during the period in aggregate, is presented below:
Acquisition of businesses Vermaat Pro Care Management Other Total
$m
$m
$m $m
Net assets acquired
Other intangible assets 820 168 173 1,161
Right-of-use assets 71 - 14 85
Property, plant and equipment 52 - 32 84
Trade and other receivables 134 19 18 171
Inventories 7 - 3 10
Tax recoverable - - 1 1
Cash and cash equivalents 81 8 21 110
Borrowings (648) - (11) (659)
Lease liabilities (71) - (14) (85)
Current tax liabilities (16) - - (16)
Trade and other payables (240) (9) (33) (282)
Provisions (6) - - (6)
Deferred tax liabilities (180) (44) (7) (231)
Fair value of net assets acquired 4 142 197 343
Less: Non-controlling interests (10) - (4) (14)
Less: Step acquisitions - - (1) (1)
Goodwill 1,080 136 129 1,345
Total consideration 1,074 278 321 1,673
Satisfied by
Cash consideration paid 1,059 278 256 1,593
Deferred and contingent consideration payable - - 60 60
Non-controlling interest put options payable - - 5 5
Non-cash consideration 15 - - 15
Total consideration 1,074 278 321 1,673
Consolidated cash flow statement
Cash consideration paid 1,059 278 256 1,593
Less: Cash and cash equivalents acquired (81) (8) (21) (110)
Cash consideration net of cash acquired 978 270 235 1,483
Deferred and contingent consideration and other payments relating to - - 27 27
businesses acquired in previous years
Payments to escrow in respect of contingent consideration payable - - 4 4
Purchase of subsidiary companies(1) 978 270 266 1,514
Repayment of borrowings acquired through business acquisitions(2) 646 - 2 648
Acquisition transaction costs3 30 1 23 54
Total cash outflow from purchase of subsidiary companies 1,654 271 291 2,216
1. Included in net cash flow from investing activities.
2. Included in net cash flow from financing activities
3. Included in net cash flow from operating activities.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
9 Acquisition, sale and closure of businesses (continued)
Acquisition of businesses (continued)
Contingent consideration is an estimate at the date of acquisition of the
amount of additional consideration that will be payable in the future. The
actual amount paid can vary from the estimate depending on the terms of the
transaction and, for example, the actual performance of the acquired business.
The fair value adjustments made in respect of acquisitions in the period are
provisional and will be finalised within 12 months of the acquisition date.
The acquisitions did not have a material impact on the Group's revenue or
profit for the period. If the acquisitions had occurred on 1 October 2025,
they would not have had a material impact on the Group's revenue or profit for
the period.
Goodwill
Goodwill Vermaat Pro Care Management Other Total
$m
$m
$m
$m
Cost
At 1 October 2025 - - 8,359 8,359
Business acquisitions 1,080 136 129 1,345
Currency adjustment (18) (4) (62) (84)
At 31 March 2026 1,062 132 8,426 9,620
Impairment
At 1 October 2025 - - 672 672
Currency adjustment - - (9) (9)
At 31 March 2026 - - 663 663
Net book value
At 1 October 2025 - - 7,687 7,687
At 31 March 2026 1,062 132 7,763 8,957
The goodwill arising on acquisition represents the premium the Group has paid
to acquire businesses that complement its existing operations and create
significant opportunities for synergies. The goodwill arising is not expected
to be deductible for tax purposes.
Sale and closure of businesses
The Group has recognised a net loss of $5m (2025: $36m) on the sale and
closure of businesses. There were no significant business disposals in the
period.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
10 Contingent liabilities
Litigation and claims
The Group is involved in various legal proceedings incidental to the nature of
its business and maintains insurance cover to reduce financial risk associated
with claims related to these proceedings. Where appropriate, provisions are
made to cover any potential uninsured losses.
Although it is not possible to predict the outcome or quantify the financial
effect of these proceedings, or any claim against the Group related thereto,
in the opinion of the directors, any uninsured losses resulting from the
ultimate resolution of these matters will not have a material effect on the
financial position of the Group. The timing of the settlement of these
proceedings or claims is uncertain.
During the period of the Group's ownership of its business in Brazil, which
was sold in 2024, the federal tax authorities issued notices of deficiency in
respect of 2014 and 2017 relating primarily to the PIS/COFINS treatment of
certain food costs which we formally objected to and which are proceeding
through the appeals process. At 31 March 2026, the total amount assessed in
respect of these matters is $92m (30 September 2025: $86m). The possibility of
further notices of deficiency for subsequent years during the period of the
Group's ownership cannot be ruled out and the judicial process is likely to
take a number of years to conclude. Based on the opinion of our local legal
advisers, we do not currently consider it likely that we will have to settle a
liability with respect to these matters and, on this basis, no provision has
been recorded.
The Group is currently subject to audits and reviews in a number of countries
that primarily relate to complex corporate tax issues. None of these audits is
currently expected to have a material impact on the Group's financial
position. We continue to engage with tax authorities and other regulatory
bodies on payroll and sales tax reviews, and compliance with labour laws and
regulations.
Food safety
In the ordinary course of business, food safety incidents are identified from
time to time and our businesses' operations receive external reviews of their
food hygiene and safety practices, both on a periodic basis and in connection
with identified incidents. At any point, a number of reviews will be ongoing.
Although it is not possible to predict the outcome or quantify the financial
effect of the outcome of these reviews, or any claim against Group companies
related thereto, in the opinion of the directors, any uninsured losses
resulting from the ultimate resolution of these ongoing reviews are not
expected to have a material effect on the financial position of the Group. The
timing of the outcome of these reviews is generally uncertain.
11 Related party transactions
Full details of the Group's related party relationships, transactions and
balances are provided in the Group's financial statements for the year ended
30 September 2025. There have been no material changes in these relationships
during the six months ended 31 March 2026 or up to the date of this
Announcement. Transactions with related parties have not had, and are not
expected to have, a material effect on the financial performance or position
of the Group.
12 Post-balance sheet events
On 10 May 2026, an interim dividend of 25.5c per share, $433m in aggregate,
was approved by the Board.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures
Introduction
The Executive Committee manages and assesses the performance of the Group
using various underlying and other Alternative Performance Measures (APMs).
These measures are not defined by International Financial Reporting Standards
(IFRS) or other generally accepted accounting principles (GAAP) and may not be
directly comparable with APMs used by other companies. Underlying measures
reflect ongoing trading and, therefore, facilitate meaningful year-on-year
comparison. The Group's APMs, together with the results prepared in accordance
with IFRS, provide comprehensive analysis of the Group's results. Accordingly,
the relevant statutory measures are also presented where appropriate. Certain
of the Group's APMs are financial Key Performance Indicators (KPIs) which
measure progress against our strategy.
In determining the adjustments to arrive at underlying results, we use a set
of established principles relating to the nature and materiality of individual
items or groups of items, including, for example, events which: (i) are
outside the normal course of business; (ii) are incurred in a pattern that is
unrelated to the trends in the underlying financial performance of our ongoing
business; or (iii) are related to business acquisitions or disposals as they
are not part of the Group's ongoing trading business and the associated cost
impact arises from the transaction rather than from the continuing business.
Definitions
Measure Definition Purpose
Income statement
Underlying operating profit Operating profit excluding specific adjusting items(2). Provides a measure of operating profitability that is comparable over time.
Underlying operating margin(1) Underlying operating profit divided by revenue. An important measure of the efficiency of our operations in delivering great
food and support services to our clients and consumers.
Organic revenue(1,3) Current year: Revenue excluding businesses acquired, sold and closed in the Embodies our success in growing and retaining our customer base, as well as
year. Prior year: Revenue including a pro forma 12 months in respect of our ability to drive volumes in our existing businesses and maintain
businesses acquired in the year and excluding businesses sold and closed in appropriate pricing levels in light of input cost inflation.
the year, translated at current year exchange rates.
Where applicable, a 53rd week is excluded from the current or prior year.
Organic operating profit Current year: Underlying operating profit excluding businesses acquired, sold Provides a measure of operating profitability that is comparable over time.
and closed in the year. Prior year: Underlying operating profit including a
pro forma 12 months in respect of businesses acquired in the year and
excluding businesses sold and closed in the year, translated at current year
exchange rates.
Where applicable, a 53rd week is excluded from the current or prior year.
Underlying finance costs Finance costs excluding specific adjusting items(2). Provides a measure of the Group's cost of financing excluding items outside of
the control of management.
Underlying profit before tax Profit before tax excluding specific adjusting items(2). Provides a measure of Group profitability that is comparable over time.
Underlying income tax expense Income tax expense excluding tax attributable to specific adjusting items(2). Provides a measure of income tax expense that is comparable over time.
Underlying effective Underlying income tax expense divided by underlying profit before tax. Provides a measure of the effective tax rate that is comparable over time.
tax rate
1. Key Performance Indicator.
2. See pages 38 and 39 for definitions of the specific adjusting items and a
reconciliation from the statutory to the underlying income statement.
3. Organic revenue is based on statutory revenue following removal of
underlying revenue as an APM (see footnote 4 on page 23).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Definitions (continued)
Measure Definition Purpose
Income statement (continued)
Underlying profit for the year Profit for the year excluding specific adjusting items(2) and tax attributable Provides a measure of Group profitability that is comparable over time.
to those items.
Underlying profit attributable to equity shareholders (underlying earnings) Profit for the year attributable to equity shareholders excluding specific Provides a measure of Group profitability that is comparable over time.
adjusting items(2) and tax attributable to those items.
Underlying earnings Earnings per share excluding specific adjusting items(2) and tax attributable Measures the performance of the Group in delivering value to shareholders.
per share(1) to those items.
Underlying EBITDA Underlying operating profit excluding underlying impairment, depreciation and Provides a measure of Group operating profitability that is comparable over
amortisation of intangible assets, tangible assets and contract-related time.
assets.
Balance sheet
Net debt Bank overdrafts, bank and other borrowings, lease liabilities and derivative Allows management to monitor the indebtedness of the Group.
financial instruments, less cash and cash equivalents.
Net debt to EBITDA Net debt divided by underlying EBITDA. Provides a measure of the Group's ability to finance and repay its debt from
its operations.
Cash flow
Capital expenditure Purchase of intangible assets, purchase of contract fulfilment assets, Provides a measure of expenditure on long-term intangible, tangible and
purchase of property, plant and equipment and investment in contract contract-related assets, net of the proceeds from disposal of intangible,
prepayments, less proceeds from sale of property, plant and tangible and contract-related assets.
equipment/intangible assets/contract fulfilment assets.
Underlying operating cash flow Net cash flow from operating activities, including purchase of intangible Provides a measure of the success of the Group in turning profit into cash
assets, purchase of contract fulfilment assets, purchase of property, plant that is comparable over time.
and equipment, proceeds from sale of property, plant and equipment/intangible
assets/contract fulfilment assets, repayment of principal under lease
liabilities and share of results of joint ventures and associates, and
excluding interest and net tax paid, post-employment benefit obligations net
of service costs, and cash payments related to specific adjusting items(2).
Underlying operating cash flow conversion Underlying operating cash flow divided by underlying operating profit. Provides a measure of the success of the Group in turning profit into cash
that is comparable over time.
Free cash flow Net cash flow from operating activities, including purchase of intangible Provides a measure of the success of the Group in turning profit into cash
assets, purchase of contract fulfilment assets, purchase of property, plant that is comparable over time.
and equipment, proceeds from sale of property, plant and equipment/intangible
assets/contract fulfilment assets, purchase of other non-trade investments,
proceeds from sale of other non-trade investments, dividends received from
joint ventures and associates, interest received, repayment of principal under
lease liabilities and dividends paid to non-controlling interests.
Underlying free Free cash flow excluding cash payments related to specific adjusting items(2). Provides a measure of the success of the Group in turning profit into cash
cash flow(1) that is comparable over time.
1. Key Performance Indicator.
2. See pages 38 and 39 for definitions of the specific adjusting items and a
reconciliation from the statutory to the underlying income statement.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Definitions (continued)
Measure Definition Purpose
Cash flow (continued)
Underlying free cash flow conversion Underlying free cash flow divided by underlying profit for the year. Provides a measure of the success of the Group in turning profit into cash
that is comparable over time.
Underlying cash Net tax paid included in net cash flow from operating activities divided by Provides a measure of the cash tax rate that is comparable over time.
tax rate underlying profit before tax.
Business growth
New business Current year revenue for the period in which no revenue had been recognised in The measure of incremental revenue in the current year from new business.
the prior year.
Lost business Prior year revenue for the period in which no revenue has been recognised in The measure of lost revenue in the current year from ceased business.
the current year.
Net new business New business minus lost business as a percentage of prior year organic The measure of net incremental revenue in the current year from business wins
revenue. and losses.
Retention 100% minus lost business as a percentage of prior year organic revenue. The measure of our success in retaining business.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Reconciliations
Income statement
Geographical segments
Organic revenue North America International Total
$m
$m
$m
Six months ended 31 March 2026
Revenue 16,719 8,264 24,983
Organic adjustments (37) (287) (324)
Organic revenue(1) 16,682 7,977 24,659
Six months ended 31 March 2025
Revenue 15,444 7,124 22,568
Currency adjustments 16 404 420
Revenue - constant currency 15,460 7,528 22,988
Organic adjustments 97 (80) 17
Organic revenue(1) 15,557 7,448 23,005
Increase in revenue at reported rates - % 8.3% 16.0% 10.7%
Increase in revenue at constant currency - % 8.1% 9.8% 8.7%
Increase in organic revenue - % 7.2% 7.1% 7.2%
1. Organic revenue is based on statutory revenue following removal of
underlying revenue as an APM (see footnote 4 on page 23). Comparative
segmental financial information for 2025 has been re-presented.
Geographical segments
Organic operating profit North America International Central Total
$m
$m
$m activities
$m
Six months ended 31 March 2026
Underlying operating profit/(loss)(1) 1,411 504 (76) 1,839
Underlying operating margin - % 8.4% 6.1% 7.4%
Organic adjustments (3) (17) - (20)
Organic operating profit/(loss) 1,408 487 (76) 1,819
Six months ended 31 March 2025
Underlying operating profit/(loss)(1) 1,289 416 (78) 1,627
Underlying operating margin - % 8.3% 5.8% 7.2%
Currency adjustments - 24 (4) 20
Underlying operating profit/(loss) - constant currency 1,289 440 (82) 1,647
Organic adjustments 7 8 - 15
Organic operating profit/(loss) 1,296 448 (82) 1,662
Increase in underlying operating profit at reported rates - % 9.5% 21.2% 13.0%
Increase in underlying operating profit at constant currency - % 9.5% 14.5% 11.7%
Increase in organic operating profit - % 8.6% 8.7% 9.4%
1. Underlying operating profit is reconciled to the GAAP measure in note 2
(segmental analysis).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Reconciliations (continued)
Six months ended 31 March 2026
Specific adjusting items
Underlying income statement Statutory 1 2 3 4 Underlying
$m
$m
$m $m $m $m
Operating profit 1,605 223 - 11 - 1,839
Net loss on sale and closure of businesses (5) - - 5 - -
Finance costs (128) 8 - - (46) (166)
Profit before tax 1,472 231 - 16 (46) 1,673
Income tax expense (393) (43) - (2) 12 (426)
Profit for the period 1,079 188 - 14 (34) 1,247
Less: Non-controlling interests (10) - - - - (10)
Profit attributable to equity shareholders 1,069 188 - 14 (34) 1,237
Earnings per share (cents) 62.9c 11.1c - 0.8c (2.0)c 72.8c
Effective tax rate (%) 26.7% 25.5%
Six months ended 31 March 2025
Specific adjusting items
Underlying income statement Statutory 1 2 3 4 Underlying
$m
$m
$m $m $m $m
Operating profit 1,476 141 2 8 - 1,627
Net loss on sale and closure of businesses (36) - - 36 - -
Finance costs (157) 6 - - 2 (149)
Profit before tax 1,283 147 2 44 2 1,478
Income tax expense (357) (31) - 11 - (377)
Profit for the period 926 116 2 55 2 1,101
Less: Non-controlling interests (7) - - - - (7)
Profit attributable to equity shareholders 919 116 2 55 2 1,094
Currency adjustments 11
Profit attributable to equity shareholders - constant currency 1,105
Earnings per share (cents) 54.2c 6.9c 0.1c 3.2c 0.1c 64.5c
Earnings per share - constant currency (cents) 65.1c
Effective tax rate (%) 27.8% 25.5%
Specific adjusting items are as follows:
1. Acquisition-related charges
Amortisation and impairment charges in respect of intangible assets acquired
through business combinations, direct costs incurred through business
combinations or other strategic asset acquisitions, business integration
costs, changes in consideration in relation to past acquisition activity,
other acquisition-related items, and net present value adjustments on deferred
and contingent consideration payable on business acquisitions.
Six months ended 31 March
Acquisition-related charges 2026 2025
$m
$m
Amortisation of acquisition intangibles 143 106
Acquisition transaction costs 60 32
Adjustment to contingent consideration payable on business acquisitions 13 -
Other 7 3
Net charge included in operating profit 223 141
Net present value adjustments on contingent consideration 7 6
Other 1 -
Net charge included in profit before tax 231 147
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Reconciliations (continued)
2. One-off pension charge
Costs incurred in respect of the UK Plan insurance buy-in transaction.
3. Gains and losses on sale and closure of businesses and charges related to the strategic portfolio review
Profits and losses on the sale of subsidiaries, joint ventures and associates,
exit costs on closure of businesses (see note 9) and charges in respect of a
strategic portfolio review to focus on the Group's core markets.
4. Other financing items
Financing items, including hedge accounting ineffectiveness, change in the
fair value of derivatives held for economic hedging purposes, change in the
fair value of investments and financing items relating to post-employment
benefits.
Six months ended 31 March
Underlying EBITDA 2026 2025
$m
$m
Underlying operating profit 1,839 1,627
Add back:
Depreciation of property, plant and equipment and right-of-use assets 398 316
Amortisation of other intangible assets, contract fulfilment assets and 353 302
contract prepayments(1)
Underlying EBITDA 2,590 2,245
1. Excludes amortisation of acquisition intangibles.
Balance sheet
At 31 March
Components of net debt 2026 2025
$m
$m
Borrowings (7,490) (5,667)
Lease liabilities (1,641) (1,449)
Derivative financial instruments (24) (129)
Gross debt (9,155) (7,245)
Cash and cash equivalents 523 653
Net debt (8,632) (6,592)
Six months ended 31 March
Net debt reconciliation 2026 2025
$m
$m
Net decrease in cash and cash equivalents (105) (54)
(Deduct)/add back:
Increase in borrowings (2,174) (1,279)
Repayment of borrowings - 108
Repayment of borrowings acquired through business acquisitions 648 145
Net cash flow from derivative financial instruments 67 53
Repayment of principal under lease liabilities 161 125
Increase in net debt from cash flows (1,403) (902)
New lease liabilities and amendments (157) (198)
Borrowings acquired through business acquisitions (659) (145)
Amortisation of fees and discounts on issue of debt (7) (2)
Changes in fair value of borrowings in a fair value hedge 60 25
Lease liabilities acquired through business acquisitions (85) (80)
Lease liabilities derecognised on sale and closure of businesses - 6
Changes in fair value of derivative financial instruments (29) (29)
Reclassification of borrowings 2 -
Currency translation gains 64 90
Increase in net debt (2,214) (1,235)
Net debt at 1 October (6,418) (5,357)
Net debt at 31 March (8,632) (6,592)
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Reconciliations (continued)
At 31 March
Net debt to EBITDA 2026 2025
$m
$m
Net debt (8,632) (6,592)
Prior year 4,645 4,145
Less: Prior half year (2,245) (2,030)
Add: Current half year 2,590 2,245
Underlying EBITDA (last 12 months) 4,990 4,360
Net debt to EBITDA (times) 1.7 1.5
Cash flow
Six months ended 31 March
Capital expenditure 2026 2025
$m
$m
Purchase of intangible assets 251 167
Purchase of contract fulfilment assets 211 174
Purchase of property, plant and equipment 345 245
Investment in contract prepayments 76 108
Proceeds from sale of property, plant and equipment/intangible assets/contract (45) (23)
fulfilment assets
Capital expenditure 838 671
Six months ended 31 March
Underlying operating cash flow 2026 2025
$m
$m
Net cash flow from operating activities 1,588 1,336
Purchase of intangible assets (251) (167)
Purchase of contract fulfilment assets (211) (174)
Purchase of property, plant and equipment (345) (245)
Proceeds from sale of property, plant and equipment/intangible assets/contract 45 23
fulfilment assets
Repayment of principal under lease liabilities (161) (125)
Share of results of joint ventures and associates 22 19
Add back/(deduct):
Interest paid 151 151
Net tax paid 383 295
Post-employment benefit obligations net of service costs (12) (3)
Cash payments related to specific adjusting items(1) 115 51
Underlying operating cash flow 1,324 1,161
1. Primarily comprises the payment of acquisition transaction costs of $54m
(2025: $36m) and certain acquired liabilities of $51m (2025: $nil).
Six months ended 31 March
Underlying operating cash flow conversion 2026 2025
$m
$m
Underlying operating cash flow 1,324 1,161
Underlying operating profit 1,839 1,627
Underlying operating cash flow conversion (%) 72.0% 71.4%
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
13 Non-GAAP measures (continued)
Reconciliations (continued)
Six months ended 31 March
Free cash flow 2026 2025
$m
$m
Net cash flow from operating activities 1,588 1,336
Purchase of intangible assets (251) (167)
Purchase of contract fulfilment assets (211) (174)
Purchase of property, plant and equipment (345) (245)
Proceeds from sale of property, plant and equipment/intangible assets/contract 45 23
fulfilment assets
Purchase of other investments (2) -
Proceeds from sale of other investments(1) 2 9
Dividends received from joint ventures and associates 25 18
Interest received 25 19
Repayment of principal under lease liabilities (161) (125)
Dividends paid to non-controlling interests (5) (2)
Free cash flow 710 692
1. 2025 excludes $39m of tax paid in respect of the sale of the Group's 19%
effective interest in ASM Global Parent, Inc. in August 2024.
Six months ended 31 March
Underlying free cash flow 2026 2025
$m
$m
Free cash flow 710 692
Add back:
Cash payments related to specific adjusting items(1) 115 51
Underlying free cash flow 825 743
1. Primarily comprises the payment of acquisition transaction costs of $54m
(2025: $36m) and certain acquired liabilities of $51m (2025: $nil).
Six months ended 31 March
Underlying free cash flow conversion 2026 2025
$m
$m
Underlying free cash flow 825 743
Underlying profit for the period 1,247 1,101
Underlying free cash flow conversion (%) 66.2% 67.5%
Six months ended 31 March
Underlying cash tax rate 2026 2025
$m
$m
Tax received 6 2
Tax paid (389) (297)
Net tax paid (383) (295)
Underlying profit before tax 1,673 1,478
Underlying cash tax rate (%) 22.9% 20.0%
Business growth
Six months ended 31 March
Net new business 2026 2025
$m
$m
New business less lost business 884 889
Prior period organic revenue(1) 23,005 20,357
Net new business (%) 3.8% 4.4%
1. 2025 based on underlying revenue (see footnote 4 on page 23).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements (continued)
For the six months ended 31 March 2026
14 Exchange rates
Average rates are used to translate the income statement and cash flow
statement. Closing rates are used to translate the balance sheet. Only the
most significant currencies are shown.
Average Period end Year end
Exchange rates Six months ended 31 March 2026 Six months ended 31 March 2025 At 31 March 2026 At 31 March 2025 At 30 September 2025
Australian dollar 1.48 1.56 1.45 1.60 1.51
Canadian dollar 1.38 1.42 1.39 1.44 1.39
Euro 0.86 0.94 0.87 0.93 0.85
Japanese yen 154.86 151.03 158.70 149.53 147.68
Norwegian krone 9.88 11.00 9.69 10.53 9.98
Pound sterling 0.75 0.78 0.76 0.77 0.74
Turkish lira 43.02 35.55 44.49 37.96 41.58
Forward-looking statements
Certain information included in this Announcement is forward-looking and
involves risks, assumptions and uncertainties that could cause actual results
to differ materially from those expressed or implied by forward-looking
statements. Forward-looking statements cover all matters which are not
historical facts and include, without limitation, the direct and indirect
future impacts and implications of: public health crises on the economy,
nationally and internationally, and on the Group, its operations and
prospects; risks associated with changes in environmental scenarios and
related regulations including (without limitation) the evolution and
development of the global transition to a low-carbon economy (including
increasing societal and investor expectations); disruptions and inefficiencies
in supply chains (such as resulting from the wars in Ukraine and the Middle
East); future domestic and global political, economic and business conditions
(such as inflation or the UK's exit from the EU or changes in global trade
policies and conditions); projections relating to results of operations and
financial conditions and the Company's plans and objectives for future
operations, including, without limitation, discussions of expected future
revenues, financing plans and expected expenditures and divestments; risks
associated with changes in economic conditions, levels of economic growth and
the strength of the food and support services markets in the jurisdictions in
which the Group operates; fluctuations in food and other product costs and
labour costs; prices and changes in exchange and interest rates; and the
impacts of technological advancements. Forward-looking statements can be
identified by the use of forward-looking terminology, including terms such as
'believes', 'estimates', 'anticipates', 'expects', 'forecasts', 'intends',
'plans', 'projects', 'goal', 'target', 'aim', 'may', 'will', 'would', 'could'
or 'should' or, in each case, their negative or other variations or comparable
terminology.
Forward-looking statements in this Announcement are not guarantees of future
performance. All forward-looking statements in this Announcement are based
upon information known to the Company on the date of this Announcement.
Accordingly, no assurance can be given that any particular expectation will be
met and readers are cautioned not to place undue reliance on forward-looking
statements when making their investment decisions. Additionally,
forward-looking statements regarding past trends or activities should not be
taken as a representation or warranty that such trends or activities will
continue in the future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority), the Company
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
Nothing in this Announcement shall exclude any liability under applicable laws
that cannot be excluded in accordance with such laws.
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