REG - Compass Group PLC - Half Year Results Announcement
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RNS Number : 5280I Compass Group PLC 14 May 2025
Half Year Results Announcement for the six months ended 31 March 2025
Underlying(1) results Statutory results
HY 2025 HY 2024 Change HY 2025 HY 2024 Change
Revenue $22.6bn $20.7bn(2) 8.5%(3) $22.6bn $20.7bn 8.8%
Operating profit $1,627m $1,458m(2) 11.6%(2) $1,476m $1,420m 3.9%
Operating margin 7.2% 7.1% 10bps 6.5% 6.8% (30)bps
Earnings per share 64.5c 58.3c(2) 10.6%(2) 54.2c 50.4c 7.5%
Operating cash flow $1,161m $1,114m 4.2% $1,336m $1,330m 0.5%
Free cash flow $743m $704m 5.5%
Interim dividend per share 22.6c 20.7c 9.2% 22.6c 20.7c 9.2%
Strong net new business and double-digit underlying operating profit growth
Delivering profit growth ahead of revenue growth:
• Underlying operating profit increased by 11.6%(2)
• Organic revenue up 8.5% with continued strong net new business
growth of 4.4%
• Secured new business of $3.6bn (LTM(4)), an 8.5%(2) increase year on
year
• Strong client retention rate of over 96%
Investing for future growth:
• $1.7bn net expenditure on capex (3.0% of underlying revenue) and
M&A ($1bn)
• Expanding our total addressable market through further
sub-sectorisation and use of technology
• Unlocking opportunities in our core markets: nearly 75% still
self-operated or managed by regional players
Resilient business model:
• Diverse sector portfolio, wide-ranging client base, flexible
operating models and significant purchasing scale
• Decentralised business model with predominantly local sourcing and
supply chain
• Well placed to benefit from any increase in outsourcing due to
macroeconomic pressures
• Completed portfolio reshaping following divestments of Chile,
Colombia, Mexico and Kazakhstan
Outlook unchanged:
• For 2025, we continue to expect high single-digit underlying
operating profit growth(2) driven by organic revenue growth above 7.5% 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:
• Revenue increased by 8.8% reflecting the strong trading performance
• Operating profit, including charges relating to business acquisitions
(mainly amortisation of acquired intangible assets), increased by 3.9% to
$1,476m. The 30bps 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. Organic revenue change.
4. Annual revenue of new business wins in the last 12 months.
Business review
Dominic Blakemore, Group Chief Executive, said:
"The Group achieved double-digit underlying operating profit growth driven by
strong organic revenue and margin progression across both regions. We are now
in the fourth year of net new business growth within our 4-5% target range,
supported by an improved performance in Europe and client retention rate of
over 96%.
The market opportunity is very attractive, with first-time outsourcing
accounting for 45% of new business wins. Over the last 12 months, we have
signed over $3.6bn(1) of new contracts, an increase of 8.5%(2) year on year,
and we have a strong pipeline of future business across all our markets. Our
size, and balance sheet strength, give us the most scope in the industry to
invest as we further enhance our unique sectorised approach and technology
capabilities.
We have a diverse sector portfolio, wide-ranging client base and significant
local purchasing scale. Although not immune to macroeconomic pressures, we are
confident in the resilience of our business model, strength of our value
proposition and ability to capitalise on outsourcing opportunities.
This year, we continue to expect high single-digit underlying operating profit
growth(2), driven by organic revenue growth above 7.5% and ongoing margin
progression. Longer term, we remain confident in sustaining mid-to-high
single-digit organic revenue growth with ongoing margin progression, leading
to profit growth ahead of revenue growth."
Results presentation today
Today, 14 May 2025, management will present Compass Group's Half Year 2025
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 (http://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, Helen Javanshiri & Simon Bielecki +44 1932 573 000
Press Amy Shields, Compass Group +44 1932 573 000
Tim Danaher, Brunswick +44 207 404 5959
Website www.compass-group.com (http://www.compass-group.com)
Financial calendar
Ex-dividend date for 2025 interim dividend 19 June
Record date for 2025 interim dividend 20 June
Last day for dividend currency elections 7 July
Last day for DRIP elections 10 July
Sterling equivalent of 2025 interim dividend announced 15 July
Q3 trading update 22 July
2025 interim dividend date for payment 31 July
Full-year results 25 November
1. Annual revenue of new business wins in the last 12 months.
2. Measured on a constant-currency basis.
Business review (continued)
Basis of preparation
Following the completion of our portfolio reshaping, the former Rest of World
region accounts for c.5% of the Group's revenue on a pro forma basis. As a
result, the Group's internal management reporting structure has been changed
to combine Rest of World with Europe to form a new International region.
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
Compass is focused on the provision of food services, with targeted support
services where appropriate. Having recently divested of several non-core
markets, we have further improved the quality of our portfolio and now operate
in around 30 countries in North America, Europe and Asia-Pacific.
Our addressable market is worth c.$320bn, nearly 75% of which is still
self-operated or managed by regional players. More demanding consumer
expectations and increased macroeconomic pressures continue to accelerate
first-time outsourcing, and we have clear competitive advantages built over
decades that help us capture these opportunities.
We have built a resilient business model with a diverse sector portfolio and a
wide-ranging customer base. Our unique approach to the market through
sectorisation enables us to better differentiate our offer compared to our
competitors and create bespoke solutions for our clients.
We leverage our significant scale, particularly in food procurement, which is
mainly locally sourced and are continuing to increase the flexibility of our
offer, ranging from different food models to digital and sustainability
initiatives.
Performance
Compass delivered a strong first-half performance, with double-digit
underlying operating profit growth in both regions. Organic revenue growth was
8.5%(1) and underlying operating margin increased by 10bps to 7.2%(1).
Capital expenditure was $0.7bn(1), 3.0%(1) of underlying revenue, and net
M&A expenditure was $1.0bn, the majority of which was spent on 4Service in
Norway and Dupont Restauration in France. In addition, during the period, the
Group acquired several small businesses mainly in the US and UK and completed
its portfolio reshaping with the exit from four countries (Chile, Colombia,
Mexico and Kazakhstan).
Cash flow generation remains strong, with underlying operating cash flow of
$1,161m(1) (2024: $1,114m) and underlying free cash flow of $743m(1) (2024:
$704m). Leverage (net debt to EBITDA) remains within the Group's guided range
at 1.5x(1) as at 31 March 2025.
Revenue
Organic revenue growth of 8.5%(1) was driven by strong net new business growth
of 4.4%(1), with pricing at around 3% and like-for-like volume growth of
around 1%. Client retention rates remained strong at 96.2%.
On a statutory basis, revenue increased by 8.8% to $22,568m (2024: $20,744m).
Profit
Underlying operating profit increased by 11.6%(1) on a constant-currency
basis, to $1,627m(1), with underlying operating margin at 7.2%(1) (2024:
7.1%). Margin progression was achieved across both regions driven by continued
operating efficiencies and the benefits of greater scale in our countries of
operation.
Statutory operating profit was $1,476m (2024: $1,420m), an increase of 3.9%,
with statutory operating margin of 6.5% (2024: 6.8%).
Statutory profit before tax of $1,283m (2024: $1,195m) includes net charges of
$195m (2024: $168m) which are excluded from underlying profit before tax.
During the period, acquisition-related charges totalled $147m (2024: $49m),
which is mainly amortisation of acquired intangible assets, and we incurred a
net charge of $44m (2024: $94m) in relation to the completion of our strategic
portfolio review to focus on the Group's core markets, which includes the exit
from four countries.
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)
2025 guidance
The Group continues to expect to achieve high single-digit underlying
operating profit growth(1) in 2025 with organic revenue growth above 7.5%(2).
We expect underlying finance costs to be around $300m(2), with an underlying
effective tax rate of around 25.5%(2).
Capital allocation
Our capital allocation framework is clear and unchanged. Our priority is to
invest in the business to fund growth opportunities, target a strong
investment-grade credit rating with a leverage target of around 1x-1.5x net
debt to 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 22.6c per share representing an increase of 9.2% 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.
The $500m share buyback announced in November 2023 was completed in December
2024, with a cash outflow of $115m during the period.
People
Our colleagues deliver outstanding experiences to clients and consumers in the
countries in which we operate. They are the key to our success, and our people
strategy is focused on identifying, attracting, developing and retaining the
high-calibre talent essential for achieving our objectives.
We create lifelong opportunities for people from the communities we serve,
ensuring they thrive in safe and positive working environments built on a
foundation of respect, teamwork and growth.
We tailor our approach to recruitment to the requirements of each country and
sector. For example, in North America, we use targeted campaigns, process
automation, AI and other tools to make the hiring process as efficient and
accessible as possible.
We aim to cultivate a caring, winning culture where we enable opportunities
for all our employees. Our focus is on treating everyone with fairness and
respect, providing opportunities for growth and development, and fostering a
positive, supportive workplace throughout their careers.
Understanding the pressures of daily life, we offer a range of support
measures to ensure our employees' wellbeing, encompassing physical, financial
and mental health.
Purpose
We influence meaningful change and improve lives by harnessing our passion for
food, advocating for 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 nearly
10,000 sites recording waste in 2024. Beyond our kitchens, we inspire global
action through initiatives like Stop Food Waste Day.
We continue to make good progress towards our emissions targets, reducing our
overall greenhouse gas intensity ratio by 4% in 2024 despite a 10% increase in
underlying revenue. As the Group grows, we continue to refine our emissions
measurement and work closely with suppliers and partners to address Scope 3
emissions, which primarily originate in the supply chain.
1. Measured on a constant-currency basis.
2. 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)
Summary
The Group delivered a strong first-half performance, with double-digit
underlying operating profit growth and good progress in both regions. Net new
business growth was within our 4-5% target range for the fourth year running
and our client retention rate remains above 96%.
We are investing for future growth and have acquired attractive businesses
which are helping to expand our addressable market through further
sub-sectorisation. Following the reshaping of our portfolio, we are now even
more focused on our core markets in which we have a strong pipeline of future
business.
We are well placed to capitalise on any increased outsourcing opportunities
given the continuing attractive market opportunities and our strong
competitive advantages.
Our diverse sector portfolio, wide-ranging client base, flexible operating
models and significant local purchasing scale all contribute to the resilience
of our business.
We have flexibility to help mitigate potential macroeconomic challenges and
remain confident in our longer-term growth algorithm of mid-to-high
single-digit organic revenue growth with ongoing margin progression, leading
to profit growth ahead of revenue growth.
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.
2025 2024 Change
Revenue
Underlying(1) $22,596m $20,887m 8.2%
Underlying (constant currency)(1) $22,596m $20,686m 9.2%
Organic(1) $22,087m $20,357m 8.5%
Statutory $22,568m $20,744m 8.8%
Operating profit
Underlying(1) $1,627m $1,474m 10.4%
Underlying (constant currency)(1) $1,627m $1,458m 11.6%
Statutory $1,476m $1,420m 3.9%
Operating margin
Underlying(1) 7.2% 7.1% 10bps
Statutory 6.5% 6.8% (30)bps
Basic earnings per share
Underlying(1) 64.5c 59.0c 9.3%
Underlying (constant currency)(1) 64.5c 58.3c 10.6%
Statutory 54.2c 50.4c 7.5%
Cash flow
Underlying - free cash flow(1) $743m $704m 5.5%
Statutory - net cash flow from operating activities $1,336m $1,330m 0.5%
Dividend
Interim dividend per ordinary share 22.6c 20.7c 9.2%
1. Alternative Performance Measure (APM) (see pages 37 to 44).
Financial review (continued)
Income statement
2024
2025
Statutory Adjustments Underlying(1) Statutory Adjustments Underlying(1)
$m $m $m $m $m $m
Revenue 22,568 28 22,596 20,744 143 20,887
Operating profit 1,476 151 1,627 1,420 54 1,474
Net loss on sale and closure of businesses (36) 36 - (94) 94 -
Finance costs (157) 8 (149) (131) 20 (111)
Profit before tax 1,283 195 1,478 1,195 168 1,363
Tax expense (357) (20) (377) (327) (21) (348)
Profit for the period 926 175 1,101 868 147 1,015
Non-controlling interests (7) - (7) (7) - (7)
Attributable profit 919 175 1,094 861 147 1,008
Average number of shares 1,697m - 1,697m 1,709m - 1,709m
Basic earnings per share 54.2c 10.3c 64.5c 50.4c 8.6c 59.0c
EBITDA 2,245 2,030
1. Alternative Performance Measure (APM) (see pages 37 to 44).
Statutory income statement
Revenue
On a statutory basis, revenue increased by 8.8% to $22,568m (2024: $20,744m).
Operating profit
Statutory operating profit was $1,476m (2024: $1,420m), an increase of 3.9%,
with statutory operating margin of 6.5% (2024: 6.8%). Statutory operating
profit includes non-underlying item charges of $151m (2024: $54m), including
acquisition-related charges of $141m (2024: $49m), which is mainly
amortisation of acquired intangible assets. 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 has recognised a net loss of $36m on the sale and closure of
businesses (2024: $94m), including exit costs of $7m and a charge of $69m in
respect of the reclassification of cumulative currency translation
differences. The Group exited four countries during the period, which
completed its strategic portfolio review.
Finance costs
Finance costs increased to $157m (2024: $131m) mainly reflecting higher net
borrowings during the period.
Tax expense
Profit before tax was $1,283m (2024: $1,195m) giving rise to an income tax
expense of $357m (2024: $327m), equivalent to an effective tax rate of 27.8%
(2024: 27.4%). As the underlying effective tax rate is unchanged, the increase
in the rate reflects the impact of the treatment of the different
non-underlying items.
Earnings per share
Basic earnings per share was 54.2c (2024: 50.4c), an increase of 7.5%,
reflecting the higher profit for the period.
Underlying income statement
Revenue
Organic revenue growth of 8.5% was driven by strong net new business growth of
4.4%, with pricing at around 3% and like-for-like volume growth of around 1%.
Client retention rates remained strong at 96.2%.
Financial review (continued)
Operating profit
Underlying operating profit increased by 11.6% on a constant-currency basis,
to $1,627m, with underlying operating margin at 7.2% (2024: 7.1%). Margin
progression was achieved across both regions driven by continued operating
efficiencies and the benefits of greater scale in our countries of operation.
Finance costs
Underlying finance costs increased to $149m (2024: $111m) mainly reflecting
higher net borrowings during the period.
Tax expense
On an underlying basis, the tax charge was $377m (2024: $348m), equivalent to
an effective tax rate of 25.5% (2024: 25.5%).
Earnings per share
On a constant-currency basis, underlying basic earnings per share increased by
10.6% to 64.5c (2024: 58.3c) reflecting the higher profit for the period.
Balance sheet
Liquidity
The Group finances its operations through cash generated by the business and
borrowings from a number of sources, including banking institutions, the
public and the private placement markets. The Group has developed long-term
relationships with a number of financial counterparties with the balance sheet
strength and credit quality to provide credit facilities as required.
The Group seeks to avoid a concentration of debt maturities in any one period
to spread its refinancing risk. A $100m US Private Placement (USPP) note
matured and was repaid in December 2024. The maturity profile of the Group's
principal borrowings at 31 March 2025 shows that the average period to
maturity is 4.5 years (30 September 2024: 4.6 years).
The Group's USPP 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. The leverage and interest cover ratios were 1.4 times and
17.4 times, respectively, at 31 March 2025. Net debt, consolidated EBITDA and
net finance costs are subject to certain accounting adjustments for the
purposes of the covenant tests.
At 31 March 2025, the Group had access to $3,731m (30 September 2024: $3,236m)
of liquidity, including a Revolving Credit Facility (RCF) committed to
February 2030 of $3,200m (30 September 2024: $2,683m), which was fully
undrawn, and $531m (30 September 2024: $553m) of cash, net of overdrafts. The
Group also had in issuance $1.3bn of commercial paper, which is backed up by
the RCF. Our 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 $1,201m to $6,592m (30 September 2024: $5,391m). The
Group generated $692m of free cash flow, after capital expenditure of $671m,
which was more than offset by $1,013m spent on the acquisition of businesses,
net of disposal proceeds, dividends of $670m and the completion of the share
buyback of $115m. Favourable exchange translation was $90m.
At 31 March 2025, the ratio of net debt to underlying EBITDA was 1.5x (30
September 2024: 1.3x). Our leverage policy is to maintain strong
investment-grade credit ratings and to target net debt to underlying EBITDA in
the range of 1x‑1.5x.
Post-employment benefits
The accounting surplus in the Compass Group Pension Plan (UK Plan) is $312m at
31 March 2025 (30 September 2024: $542m). In December 2024, the UK Plan
entered into a buy-in whereby c.98% of its liabilities of $1.7bn at 31 March
2025 are covered by an insurance arrangement which protects the Group's
balance sheet from future volatility in financial markets and longevity rates
in respect of these liabilities.
Financial review (continued)
The deficit in the rest of the Group's defined benefit pension schemes has
decreased to $1,239m (30 September 2024: $1,274m). The net deficit in these
schemes is $112m (30 September 2024: $154m) including investments of $1,127m
(30 September 2024: $1,120m) 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 $692m (2024: $675m). In the six months, we made cash
payments totalling $15m (2024: $13m) in relation to strategic programmes and
the one-off pension charge. Adjusting for this, and for acquisition
transaction costs of $36m (2024: $16m) which are reported as part of operating
cash flow, underlying free cash flow was $743m (2024: $704m), with underlying
free cash flow conversion at 67.5% (2024: 69.4%).
Capital expenditure of $671m (2024: $693m) is equivalent to 3.0% (2024: 3.3%)
of underlying revenue. The working capital outflow, excluding provisions and
pensions, was $356m (2024: $167m). The net interest outflow increased to $132m
(2024: $98m) consistent with the higher underlying finance costs in the
period. The net tax paid was $295m (2024: $301m), which is equivalent to an
underlying cash tax rate of 20.0% (2024: 22.1%).
Acquisition and disposal of businesses
The Group spent $1,131m (2024: $371m) on business acquisitions during the
period, net of cash acquired, including $701m on Dupont Restauration in France
and 4Service in Norway (including the repayment of acquired borrowings), $284m
on bolt-on acquisitions and interests in joint ventures and associates, and
$146m of deferred and contingent consideration and other payments relating to
businesses acquired in previous years.
The Group received $118m (2024: $14m) in respect of disposal proceeds net of
exit costs, which primarily comprises the sale of businesses in four countries
during the period.
Including $36m (2024: $16m) of acquisition transaction costs included in net
cash flow from operating activities, the total net cash spent on the
acquisition and disposal of businesses is $1,049m (2024: $373m).
Dividends paid
Dividends paid represent the 2024 final dividend of $670m.
Purchase of own shares
The cash outflow in respect of the completion of the $500m share buyback
announced in November 2023 totalled $115m during the period.
Foreign exchange translation
The $90m gain (2024: $24m loss) 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 22.
The Group has access to considerable financial resources, together with
longer-term contracts with a number of clients and suppliers across different
geographic areas and industries. As a consequence, the directors believe that
the Group is well placed to manage its business risks successfully.
Based on the assessment discussed on page 22, 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
Underlying revenue(1) Change Statutory revenue Change
2025 2024 Reported Constant Organic 2025 2024 Reported
$m
$m
$m rates currency % $m rates
% % %
North America 15,452 14,127 9.4% 9.6% 8.6% 15,444 14,114 9.4%
International(2) 7,144 6,760 5.7% 8.4% 8.2% 7,124 6,630 7.5%
Total 22,596 20,887 8.2% 9.2% 8.5% 22,568 20,744 8.8%
Underlying operating profit(1) Change Underlying operating margin(1) Statutory operating profit Statutory operating margin
2025 Constant 2025 2024 2025 2025 2024
$m
%
%
$m
%
%
2024 currency 2024
$m
$m
%
North America 1,289 1,165 10.8% 8.3% 8.2% 1,238 1,157 8.0% 8.2%
International(2) 416 381 13.0% 5.8% 5.6% 316 335 4.4% 5.1%
Unallocated overheads (78) (72) (78) (72)
Total 1,627 1,474 11.6% 7.2% 7.1% 1,476 1,420 6.5% 6.8%
1. Alternative Performance Measure (APM) (see pages 37 to 44).
2. Our former Rest of World region now accounts for c.5% of the Group's
revenue on a pro forma basis. With effect from 1 October 2024, the Group's
internal management reporting structure has been changed to combine Rest of
World with Europe to form a new International region. Comparative segmental
financial information for 2024 has been re-presented.
North America - 68% of Group underlying revenue (2024: 68%)
Underlying
Operating profit increased by 10.8% on a constant-currency basis, to $1,289m,
primarily driven by strong organic revenue growth and further margin progress.
Organic revenue growth of 8.6% resulted from continued excellent net new
business growth, appropriate pricing and ongoing like-for-like volume growth.
Our client retention rate in North America remained very strong at 97%.
The region experienced good growth across all our main sectors. Business &
Industry performed particularly well, underpinned by an excellent net new
business performance and our compelling quality and value proposition, where
we believe the gap continues to widen compared to high street alternatives.
Operating margin increased by 10bps to 8.3% as the region benefited from
operational efficiencies and overhead leverage.
We continued to strengthen our market position through targeted acquisitions
and investment in talent to unlock further growth opportunities, increasing
our addressable market by targeting new and emerging sub-sectors. Vending and
unattended markets remain an ongoing area of focus as we continue to expand
our reach and capabilities.
Statutory
Statutory revenue increased by 9.4% to $15,444m reflecting the strong organic
revenue growth.
Statutory operating profit was $1,238m (2024: $1,157m), with the difference
from underlying operating profit being acquisition-related charges of $51m
(2024: $8m).
Regional review (continued)
International - 32% of Group underlying revenue (2024: 32%)
Underlying
As previously announced, following the completion of our portfolio reshaping,
our Europe and Rest of World regions have been combined to form one new
International region.
Operating profit increased by 13.0% on a constant-currency basis, to $416m,
driven by strong organic revenue growth and margin expansion.
Organic revenue growth of 8.2% was driven by net new business growth, strong
like-for-like-volume growth and appropriate levels of pricing. Our client
retention rate at 95% remains significantly higher than historic levels.
We experienced good growth across all sectors, particularly in Business &
Industry and Sports & Leisure. Sports & Leisure is an area of focus
for the Group as we further leverage our expertise across our International
markets.
Operating margin increased by 20bps to 5.8% as the region benefited from
increased efficiencies and greater scale within our operations.
We are continuing to invest in strategic M&A as we unlock growth
opportunities in the region. During the period, we acquired Dupont
Restauration in France and 4Service in Norway, further enhancing our ability
to sub-sectorise and increasing the flexibility of our operating model
We also completed the exits of our operations in Chile, Columbia, Mexico and
Kazakhstan.
Statutory
Statutory revenue increased by 7.5% to $7,124m, with the difference between
statutory and underlying revenue being the presentation of the share of
results of our joint ventures operating in the Middle East.
Statutory operating profit was $316m (2024: $335m), with the difference from
underlying operating profit primarily reflecting acquisition-related charges
of $90m (2024: $41m).
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
risk management policies, processes and procedures in place to ensure that
risks are properly identified, evaluated and managed at the appropriate level.
The identification of risks and opportunities, the development of action plans
to manage those risks and maximise the opportunities, and the continual
monitoring of progress against agreed key performance indicators (KPIs) are
integral parts of the business process and core activities throughout the
Group.
Principal risks
Details of the principal risks facing the Group and mitigating actions are
included on pages 24 to 28 of the 2024 Annual Report. Those risks and
uncertainties are unchanged at the date of this Announcement, with the
exception of the economic volatility risk. A description of the risks and
uncertainties is set out below.
Risk and description
Climate change
The impact of climate change on the environment may lead to issues around food
sourcing and security, and supply chain continuity in some of the Group's
markets. Issues in these areas could affect the availability of some food
products, and potentially may lead to food cost inflation.
Food safety
Compass Group companies feed millions of consumers every day. For that reason,
setting the highest standards for food hygiene and safety is paramount. Safety
breaches could cause serious business interruption and could result in
criminal and/or civil prosecution, increased costs and potential damage to the
Company's reputation.
Occupational safety
Compass Group companies employ hundreds of thousands of people globally.
Ensuring the safety of our employees, consumers, and suppliers is our top
priority. Failure to comply with workplace safety standards can result in
injuries to employees, clients and consumers, or other third parties,
potentially causing operational disruptions and adverse financial, legal, and
reputational consequences.
Pandemic
The Group's operations were significantly disrupted due to the global COVID-19
pandemic and associated containment measures. Compass recovered well and
learned from the pandemic, and this risk has now diminished. However,
outbreaks 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.
Changes to economic conditions may increase the risk of attrition at all
levels of the organisation.
Sales and retention
The Group's growth ambitions rely on sustainably driving positive net new
business through securing and retaining a diverse range of clients.
The Group's operating companies contract with a large number of clients.
Failure to comply with the terms of these contracts, including proper delivery
of services, could lead to the loss of business and/or claims.
The potential loss of material client contracts and the inability to secure
additional new contracts in a competitive market is a risk to Compass'
businesses.
The emergence of new industry participants and traditional competition using
disruptive technology could adversely affect the Group's businesses.
Risk management (continued)
Principal risks (continued)
Risk and description (continued)
Geopolitical
The conflict in the Middle East and the ongoing Russia-Ukraine war have
increased geopolitical risks, heightened national security threats in those
regions, and disrupted the global energy market. These factors contribute to
risks such as economic volatility including cost inflation and cybersecurity
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, the recent global market
instability has increased the potential risks of economic volatility in our
primary markets.
Business ethics and integrity
Ineffective compliance management systems, lack of an embedded business
integrity culture or serious violation 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 result in civil and/or criminal proceedings leading to significant
fines, sanctions, financial loss and reputational harm.
Regulatory expectations and new laws in these areas are being introduced in
certain countries and regions, with a heightened focus on corporate
enforcement, accountability and supply chain resilience.
Cybersecurity and data privacy
The digital world creates increasing risk 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 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
a regulatory fine or other sanction and/or third-party claims.
The incidence of sophisticated phishing and malware attacks (including
ransomware) on businesses is rising with an increase in the number of
companies suffering operational disruption, unauthorised access to and/or loss
of data, including confidential, commercial, and personal identifiable data.
A combination of geopolitical instability and accessibility of sophisticated
AI enabled tools and techniques have contributed to an increase in the risk of
phishing and malware attacks including ransomware across all industries.
The democratisation of generative AI has given widespread access to powerful
online AI services for content creation. This opportunity presents several
risks including to data privacy and confidentiality.
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
14 May 2025
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 condensed set of financial statements in the half-yearly financial report for the six months ended The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.
31 March 2025 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with UK-adopted international accounting standards.
statement of changes in equity, the condensed consolidated balance sheet, the condensed consolidated cash flow statement and the related explanatory notes. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted for use in the UK.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for In preparing the condensed set of financial statements, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
the six months ended 31 March 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Our responsibility
Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report.
Basis for conclusion The purpose of our review work and to whom we owe our responsibilities
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent
This report is made solely to the Company in accordance with the terms of our
Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons engagement to assist the Company in meeting the requirements of the DTR of the
responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly UK FCA. Our review has been undertaken so that we might state to the Company
financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial those matters we are required to state to it in this report and for no other
statements. purpose. To the fullest extent permitted by law, we do not accept or assume
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain responsibility to anyone other than the Company for our review work, for this
assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. report, or for the conclusions we have reached.
Conclusions relating to going concern
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, 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 the directors have
identified material uncertainties relating to going concern that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Group to cease to
continue as a going concern, and the above conclusions are not a guarantee that the Group will continue in operation.
Jonathan Downer
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
14 May 2025
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated income statement
For the six months ended 31 March 2025
Six months ended 31 March
2025 2024
Notes $m $m $m $m
Revenue 2 22,568 20,744
Operating costs 3 (21,111) (19,354)
Operating profit before joint ventures and associates 1,457 1,390
Share of results of joint ventures and associates 19 30
Underlying operating profit1 2,13 1,627 1,474
Acquisition-related charges 2,13 (141) (49)
Charges related to the strategic portfolio review 2,13 (8) -
Other(2) 2,13 (2) (5)
Operating profit 2 1,476 1,420
Net loss on sale and closure of businesses 9,13 (36) (94)
Finance income 18 18
Finance expense (167) (129)
Acquisition-related charges 13 (6) -
Other financing items 13 (2) (20)
Finance costs (157) (131)
Profit before tax 1,283 1,195
Income tax expense 4 (357) (327)
Profit for the period 926 868
Attributable to
Equity shareholders 919 861
Non-controlling interests 7 7
Profit for the period 926 868
Basic earnings per share 5 54.2c 50.4c
Diluted earnings per share 5 54.1c 50.4c
1. Operating profit excluding specific adjusting items (see note 13).
2. Other specific adjusting items include one-off pension charge and tax on
share of profit of joint ventures (see note 13).
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated statement of comprehensive income
For the six months ended 31 March 2025
Six months ended 31 March
Notes 2025 2024
$m
$m
Profit for the period 926 868
Other comprehensive income
Items that will not be reclassified to the income statement
Remeasurement of post-employment benefit obligations 204 (259)
Return on plan assets, excluding interest income (327) 101
Change in asset ceiling, excluding interest income (1) -
Change in fair value of financial assets at fair value through other (35) 204
comprehensive income
Tax credit/(charge) on items relating to the components of other comprehensive 41 (16)
income
(118) 30
Items that may be reclassified to the income statement
Currency translation differences(1) (106) 82
Change in fair value of financial assets at fair value through other (8) 5
comprehensive income
Reclassification of cumulative currency translation differences on sale of 9 69 76
businesses
(45) 163
Total other comprehensive (loss)/income for the period (163) 193
Total comprehensive income for the period 763 1,061
Attributable to
Equity shareholders 756 1,054
Non-controlling interests 7 7
Total comprehensive income for the period 763 1,061
1. Includes a loss of $61m in relation to the effective portion of net
investment hedges (2024: gain of $96m).
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated statement of changes in equity
For the six months ended 31 March 2025
Attributable to equity shareholders
Notes Share capital Share premium Other reserves Retained earnings Non-controlling interests Total 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 9 - - 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
Changes to non-controlling interests due to acquisitions and disposals 9 - - - - 5 5
Change in fair value of non-controlling interest put options - - (2) - - (2)
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 statement of changes in equity
For the six months ended 31 March 2025
Attributable to equity shareholders
Notes Share capital Share premium Other reserves Retained earnings Non-controlling interests Total equity
$m $m $m $m $m $m
At 1 October 2023 346 317 4,582 1,018 37 6,300
Profit for the period - - - 861 7 868
Other comprehensive income
Remeasurement of post-employment benefit obligations - - - (259) - (259)
Return on plan assets, excluding interest income - - - 101 - 101
Change in fair value of financial assets at fair value through other - - - 209 - 209
comprehensive income
Currency translation differences - - 82 - - 82
Reclassification of cumulative currency translation differences on sale of - - 76 - - 76
businesses
Tax charge on items relating to the components of other comprehensive income - - - (16) - (16)
Total other comprehensive income for the period - - 158 35 - 193
Total comprehensive income for the period - - 158 896 7 1,061
Fair value of share-based payments - - - 34 - 34
Change in fair value of non-controlling interest put options - - 7 - - 7
Cost of shares transferred to employees - - 62 (62) - -
Purchase of own shares - share buyback - - (253) - - (253)
346 317 4,556 1,886 44 7,149
Dividends paid to equity shareholders 6 - - - (606) - (606)
Dividends paid to non-controlling interests - - - - (4) (4)
At 31 March 2024 346 317 4,556 1,280 40 6,539
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated balance sheet
At 31 March 2025
At 31 March 2025 At 30 September 2024
$m
$m
Non-current assets
Goodwill 7,411 6,899
Other intangible assets 3,767 3,325
Costs to obtain and fulfil contracts 1,529 1,525
Right-of-use assets 1,269 1,144
Property, plant and equipment 1,450 1,411
Interests in joint ventures and associates 199 203
Other investments 1,180 1,149
Post-employment benefit assets 312 542
Trade and other receivables 406 410
Deferred tax assets 223 179
Derivative financial instruments 30 69
Non-current assets 17,776 16,856
Current assets
Inventories 776 734
Trade and other receivables 5,855 5,686
Tax recoverable 114 141
Cash and cash equivalents 653 623
Derivative financial instruments 13 36
7,411 7,220
Assets held for sale - 273
Current assets 7,411 7,493
Total assets 25,187 24,349
Current liabilities
Borrowings (2,043) (822)
Lease liabilities (316) (273)
Derivative financial instruments (14) (21)
Provisions (390) (370)
Current tax liabilities (235) (235)
Trade and other payables (7,761) (8,172)
(10,759) (9,893)
Liabilities held for sale - (179)
Current liabilities (10,759) (10,072)
Non-current liabilities
Borrowings (3,624) (3,774)
Lease liabilities (1,133) (1,042)
Derivative financial instruments (158) (187)
Post-employment benefit obligations (1,239) (1,274)
Provisions (341) (344)
Deferred tax liabilities (358) (287)
Trade and other payables (523) (463)
Non-current liabilities (7,376) (7,371)
Total liabilities (18,135) (17,443)
Net assets 7,052 6,906
Equity
Share capital 346 346
Share premium 317 317
Other reserves 4,628 4,592
Retained earnings 1,674 1,574
Total equity shareholders' funds 6,965 6,829
Non-controlling interests 87 77
Total equity 7,052 6,906
Compass Group PLC
Condensed Consolidated Financial Statements
Condensed consolidated cash flow statement
For the six months ended 31 March 2025
Six months ended 31 March
Notes 2025 2024
$m
$m
Cash flow from operating activities
Cash generated from operations 7 1,782 1,749
Interest paid (151) (118)
Tax received 2 3
Tax paid (297) (304)
Net cash flow from operating activities 1,336 1,330
Cash flow from investing activities
Purchase of subsidiary companies 9 (986) (366)
Purchase of interests in joint ventures and associates - (5)
Net proceeds from sale of subsidiary companies, joint ventures and associates 9 118 14
net of exit costs
Purchase of intangible assets (167) (151)
Purchase of contract fulfilment assets (174) (202)
Purchase of property, plant and equipment (245) (263)
Proceeds from sale of property, plant and equipment/intangible assets/contract 23 35
fulfilment assets
Purchase of other investments (30) (1)
(Payments)/proceeds from sale of other investments (27) 1
Dividends received from joint ventures and associates 18 18
Interest received 19 20
Loans to third parties - (26)
Net cash flow from investing activities (1,451) (926)
Cash flow from financing activities
Purchase of own shares - share buyback (115) (377)
Increase in borrowings 1,279 806
Repayment of borrowings (108) (352)
Repayment of borrowings acquired through business acquisitions 9 (145) -
Net cash flow from derivative financial instruments (53) 51
Repayment of principal under lease liabilities (125) (108)
Dividends paid to equity shareholders 6 (670) (606)
Dividends paid to non-controlling interests (2) (4)
Net cash flow from financing activities 61 (590)
Cash and cash equivalents
Net decrease in cash and cash equivalents (54) (186)
Cash and cash equivalents at 1 October(1) 593 830
Currency translation (losses)/gains on cash and cash equivalents (8) 18
Cash and cash equivalents at 31 March 531 662
Cash and cash equivalents 653 695
Bank overdrafts (122) (58)
Cash and cash equivalents(2) 531 637
Cash classified as held for sale - 25
Cash and cash equivalents at 31 March 531 662
1. Cash and cash equivalents at 1 October 2024 include cash of $40m
classified as held for sale and overdrafts of $70m in the consolidated balance
sheet at 30 September 2024.
2. 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 2025
1 Basis of preparation
Introduction
The unaudited condensed consolidated financial statements for the six months
ended 31 March 2025:
• 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 2024;
• 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 2024; and
• were approved by the Board on 14 May 2025.
The comparative figures for the year ended 30 September 2024 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 consolidated financial statements are prepared on a going concern basis
for the reasons stated below.
At 31 March 2025, the Group's financing arrangements included Eurobonds
($3.6bn) and US Private Placement (USPP) notes ($0.6bn), together with a
Revolving Credit Facility (RCF) of $3.2bn, committed to February 2030, which
was fully undrawn, and $0.5bn of cash, net of overdrafts. The Group also had
in issuance $1.3bn of commercial paper, which is backed up by the RCF. 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 2025. 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). Debt maturities in the assessment period are, in the
period to June 2025, $1.3bn of commercial paper and, in September 2025, a
£250m ($323m) Eurobond and $300m USPP note. 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 in the event that underlying operating profit reduced by more than
70%, which the directors do not consider to be likely. 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.
Changes in accounting policies
There are a number of 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
For the six months ended 31 March 2025
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 in cash flows from investing activities
was $174m (2024: $202m).
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.
Following a buy-in entered into in December 2024, whereby c.98% of the UK
Plan's liabilities of $1.7bn at 31 March 2025 are covered by an insurance
arrangement, post-employment benefit obligations are no longer considered to
be a major source of estimation uncertainty.
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 estimation 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 its impact on the
environment may lead to issues around food sourcing and security, and supply
chain continuity 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; other intangible assets; and post-employment
benefits. 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
For the six months ended 31 March 2025
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 underlying revenue and 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 revenue and operating profit are reconciled to GAAP measures 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(3) Total
$m $m $m
Six months ended 31 March 2025
Business & Industry 5,364 3,233 8,597
Education 3,525 1,011 4,536
Healthcare & Senior Living 4,245 1,007 5,252
Sports & Leisure 2,158 787 2,945
Defence, Offshore & Remote 160 1,106 1,266
Underlying revenue4,5 15,452 7,144 22,596
Less: Share of revenue of joint ventures (8) (20) (28)
Revenue 15,444 7,124 22,568
Six months ended 31 March 2024
Business & Industry 4,727 2,997 7,724
Education 3,292 877 4,169
Healthcare & Senior Living 3,926 1,002 4,928
Sports & Leisure 2,008 637 2,645
Defence, Offshore & Remote 174 1,247 1,421
Underlying revenue4,5 14,127 6,760 20,887
Less: Share of revenue of joint ventures (13) (130) (143)
Revenue 14,114 6,630 20,744
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. Our former Rest of World region now accounts for c.5% of the Group's
revenue on a pro forma basis. With effect from 1 October 2024, the Group's
internal management reporting structure has been changed to combine Rest of
World with Europe to form a new International region. Comparative segmental
financial information for 2024 has been re-presented.
4. Revenue plus share of revenue of joint ventures.
5. Underlying revenue arising in the UK, the Group's country of domicile,
was $1,958m (2024: $1,519m). Underlying revenue arising in the US region was
$14,675m (2024: $13,391m). Underlying revenue arising in all countries outside
the UK from which the Group derives revenue was $20,638m (2024: $19,368m).
Geographical segments
Profit by geographical segment North America International Central activities Total
$m
$m
$m
$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).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
2 Segmental analysis (continued)
Geographical segments
Profit by geographical segment North America International(1) Central Total
$m $m activities $m
$m
Six months ended 31 March 2024
Underlying operating profit/(loss) before results of joint ventures and 1,154 360 (72) 1,442
associates
Add: Share of profit before tax of joint ventures 1 14 - 15
Add: Share of results of associates 10 7 - 17
Underlying operating profit/(loss)2 1,165 381 (72) 1,474
Less: Acquisition-related charges3 (8) (41) - (49)
Less: One-off pension charge(3) - (3) - (3)
Less: Tax on share of profit of joint ventures(3) - (2) - (2)
Operating profit/(loss) 1,157 335 (72) 1,420
Net loss on sale and closure of businesses3 (94)
Finance costs (131)
Profit before tax 1,195
Income tax expense (327)
Profit for the period 868
1. Our former Rest of World region now accounts for c.5% of the Group's
revenue on a pro forma basis. With effect from 1 October 2024, the Group's
internal management reporting structure has been changed to combine Rest of
World with Europe to form a new International region. Comparative segmental
financial information for 2024 has been re-presented.
2. Operating profit excluding specific adjusting items (see note 13).
3. Specific adjusting item (see note 13).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
3 Operating costs
Six months ended 31 March
Operating costs 2025 2024
$m
$m
Food and materials
Cost of inventories consumed 6,178 5,761
Labour
Employee remuneration 10,739 9,682
Overheads
Commissions and fees paid to clients 802 838
Amortisation - other intangible assets 85 74
Amortisation - contract fulfilment assets 166 147
Depreciation - right-of-use assets 122 106
Depreciation - property, plant and equipment 194 177
Impairment losses - non-current assets - 7
Acquisition-related charges(1) (see below) 141 49
Charges related to the strategic portfolio review(1) 8 -
Other 2,676 2,513
Total 21,111 19,354
1. Specific adjusting item (see note 13).
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 and
other acquisition-related items.
Six months ended 31 March
Acquisition-related charges 2025 2024
$m
$m
Amortisation - acquisition intangibles 106 68
Acquisition transaction costs 32 16
Gains on bargain purchases - (35)
Other 3 -
Total 141 49
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
4 Tax
Six months ended 31 March
Income tax expense 2025 2024
$m
$m
Current tax
Current period 340 349
Adjustment in respect of prior years (15) (18)
Current tax expense 325 331
Deferred tax
Current period 32 (4)
Deferred tax charge/(credit) 32 (4)
Total 357 327
The income tax expense for the period is based on the effective UK statutory
rate of corporation tax for the period of 25% (2024: 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
2025.
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 $68m
(30 September 2024: $101m) and other temporary differences of $13m (30
September 2024: $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 applies from
the financial year ending 30 September 2025. The impact on the Group's
effective tax rate is not expected to be material. The Group has applied the
temporary exception under IAS 12 Income Taxes 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
For the six months ended 31 March 2025
5 Earnings per share
Six months ended 31 March
Profit for the period attributable to equity shareholders 2025 2024
$m
$m
Profit for the period attributable to equity shareholders 919 861
Six months ended 31 March
Weighted average number of ordinary shares 2025 2024
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 1,697 1,709
Dilutive effect of share-based payment plans 1 -
Weighted average number of ordinary shares for diluted earnings per share 1,698 1,709
Six months ended 31 March
Earnings per share 2025 2024
cents
cents
Basic 54.2c 50.4c
Diluted 54.1c 50.4c
Underlying earnings per share for the six months ended 31 March 2025 was 64.5c
(2024: 59.0c). Underlying earnings per share is calculated based on earnings
excluding the effect of acquisition-related charges, charges related to the
strategic portfolio review, one-off pension charge, gains and losses on sale
and closure of businesses and other financing items, together with the tax
attributable to these amounts (see note 13).
6 Dividends
The interim dividend of 22.6c per share (2024: 20.7c per share), $384m in
aggregate(1), is payable on 31 July 2025 to shareholders on the register at
the close of business on 20 June 2025. 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 31 March 2025 Six months ended 31 March 2024
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 2023 - - 34.7c 606
Final 2024 39.1c 670 - -
Total 39.1c 670 34.7c 606
1. Based on the number of ordinary shares in issue at 31 March 2025
excluding shares held in treasury and the Compass Group PLC All Share Schemes
Trust (1,697m shares).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
7 Reconciliation of operating profit to cash generated from operations
Six months ended 31 March
Reconciliation of operating profit to cash generated from operations 2025 2024
$m
$m
Operating profit before joint ventures and associates 1,457 1,390
Adjustments for:
Acquisition-related charges1 109 33
Charges related to the strategic portfolio review 8 -
One-off pension charge 2 3
Amortisation - other intangible assets(2) 85 74
Amortisation - contract fulfilment assets 166 147
Amortisation - contract prepayments 51 45
Depreciation - right-of-use assets 122 106
Depreciation - property, plant and equipment 194 177
Unwind of costs to obtain contracts 18 16
Impairment losses - non-current assets - 7
Loss/(gain) on disposal of property, plant and equipment/intangible 5 (9)
assets/contract fulfilment assets
Other non-cash changes (1) -
Increase in provisions 13 21
Investment in contract prepayments (108) (112)
Increase in costs to obtain contracts3 (26) (21)
Post-employment benefit obligations net of service costs 3 5
Share-based payments - charged to profit 40 34
Operating cash flow before movements in working capital 2,138 1,916
Increase in inventories (40) (23)
Increase in receivables (72) (226)
(Decrease)/increase in payables (244) 82
Cash generated from operations 1,782 1,749
1. Includes amortisation and impairment of acquisition intangibles. Excludes
acquisition transaction costs of $32m (2024: $16m) 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 2025, the purchase of
contract fulfilment assets in cash flows from investing activities was $174m
(2024: $202m).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
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 2025 or 2024. The
carrying amounts of financial instruments measured at fair value are shown in
the table below:
Financial instruments measured at fair value Level At 31 At 30 September 2024
$m
March
2025
$m
Non-current
Rabbi Trust investments(1) 1 1,040 1,022
Mutual fund investments(1) 1 51 62
Life insurance policies(1) 2 36 36
Derivative financial instruments - assets 2 30 69
Derivative financial instruments - liabilities 2 (158) (187)
Trade investments1 3 53 29
Contingent consideration payable on business acquisitions(2) 3 (116) (102)
Non-controlling interest put options2 3 (71) (65)
Current
Money market funds3 1 31 126
Derivative financial instruments - assets 2 13 36
Derivative financial instruments - liabilities 2 (14) (21)
Contingent consideration payable on business acquisitions(2) 3 (134) (250)
Non-controlling interest put options2 3 (5) (5)
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 2025 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 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
For the six months ended 31 March 2025
8 Financial instruments (continued)
A reconciliation from opening to closing balances for Level 3 financial
instruments is as follows:
Six months ended 31 March 2025 Six months ended 31 March 2024
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 29 (352) (70) 181 (158) (22)
Change in fair value recognised in the statement of comprehensive income (3) - - 100 - -
Change in fair value recognised in the statement of changes in equity - - (2) - - 7
Additions 30 (41) (7) - (8) -
Disposals (3) - - - - -
Payments relating to businesses acquired in previous years - 140 - - 27 -
Net present value adjustments - (6) - - (3) -
Currency translation - 9 3 (1) (1) -
At 31 March 53 (250) (76) 280 (143) (15)
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 2025 is $5,667m (30 September 2024: $4,596m). The fair value of
borrowings at 31 March 2025, calculated by discounting future cash flows to
net present values at current market rates for similar financial instruments
(Level 2 inputs), is $5,704m (30 September 2024: $4,625m).
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
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 2025, net of cash acquired, was $1,167m (2024: $382m),
including $145m (2024: $nil) on the repayment of borrowings acquired through
business acquisitions, $146m (2024: $29m) of deferred and contingent
consideration and other payments relating to businesses acquired in previous
years, and $36m (2024: $16m) 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 2025 (Dupont Restauration and 4Service). Detailed disclosures
in respect of these acquisitions are provided below.
Dupont Restauration
On 31 October 2024, the Group acquired 100% of the issued share capital of DR
Holding (trading as Dupont Restauration), a provider of contract catering
services in France, for cash consideration of €198m ($215m) net of cash
acquired. The cash consideration excludes third-party debt acquired and repaid
on the date of acquisition of €64m ($69m).
The goodwill of $144m represents the premium the Group has paid to acquire a
company that complements its existing businesses and creates significant
opportunities for synergies, including economies of scale in purchasing and
overhead cost savings.
The fair value of net assets acquired includes $160m in respect of other
intangible assets which mainly relate to brands ($28m) and client contracts
($130m). The brands were valued using the relief from royalty method, with the
key assumptions being forecast revenue, royalty rate, useful life and discount
rate. The client contracts were valued using the multi-period excess earnings
method, with the key assumptions being forecast operating profit, attrition
rate, useful life and discount rate. The intangible assets were valued by
independent valuation experts.
The acquisition did not have a material impact on the Group's revenue or
profit for the period. If the acquisition had occurred on 1 October 2024, it
would not have had a material impact on the Group's revenue or profit for the
period.
4Service
On 17 January 2025, the Group acquired 100% of the issued share capital of
4Service Holding (trading as 4Service), a provider of catering and facility
management services in Norway, for cash consideration of NOK 3,964bn ($343m)
net of cash acquired. The cash consideration excludes third-party debt
acquired and repaid on the date of acquisition of NOK 854m ($74m).
The goodwill of $335m represents the premium the Group has paid to acquire a
company that complements its existing businesses and enhances its
capabilities, as well as creating significant opportunities for synergies,
including economies of scale in purchasing, overhead cost savings and
cross-selling opportunities with existing clients.
The fair value of net assets acquired includes $176m in respect of other
intangible assets which mainly relate to brands ($57m) and client contracts
($115m). The brands were valued using the relief from royalty method, with the
key assumptions being forecast revenue, royalty rate, useful life and discount
rate. The client contracts were valued using the multi-period excess earnings
method, with the key assumptions being forecast operating profit, attrition
rate, useful life and discount rate. The intangible assets were valued by
independent valuation experts.
The acquisition did not have a material impact on the Group's revenue or
profit for the period. If the acquisition had occurred on 1 October 2024, it
would not have had a material impact on the Group's revenue or profit for the
period.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
9 Acquisition, sale and closure of businesses (continued)
Acquisition of businesses (continued)
All acquisitions
A summary of the Dupont Restauration and 4Service acquisitions, together with
all acquisitions completed during the period in aggregate, is presented below:
Dupont Restauration 4Service Other Total
$m
$m
$m
$m
Net assets acquired
Other intangible assets 160 176 189 525
Costs to obtain and fulfil contracts - - 4 4
Right-of-use assets 14 52 14 80
Property, plant and equipment 11 9 13 33
Trade and other receivables 78 64 18 160
Inventories 6 5 5 16
Cash and cash equivalents 37 47 18 102
Borrowings (69) (74) (2) (145)
Lease liabilities (14) (52) (14) (80)
Current tax liabilities (1) (2) (2) (5)
Trade and other payables (68) (120) (38) (226)
Provisions (4) (11) - (15)
Post-employment benefit obligations (3) - - (3)
Deferred tax liabilities (39) (34) (10) (83)
Fair value of net assets acquired 108 60 195 363
Less: Non-controlling interests - (5) - (5)
Goodwill 144 335 156 635
Total consideration 252 390 351 993
Satisfied by
Cash consideration paid 252 390 300 942
Deferred and contingent consideration payable - - 44 44
Non-controlling interest put options payable - - 7 7
Total consideration 252 390 351 993
Cash flow
Cash consideration paid 252 390 300 942
Less: Cash and cash equivalents acquired (37) (47) (18) (102)
Cash consideration net of cash acquired 215 343 282 840
Add: Repayment of borrowings acquired through business acquisitions(1) 69 74 2 145
Add: Acquisition transaction costs2 4 7 25 36
Net cash outflow arising on acquisition 288 424 309 1,021
Deferred and contingent consideration and other payments relating to - - 146 146
businesses acquired in previous years
Total cash outflow from purchase of subsidiary companies 288 424 455 1,167
Consolidated cash flow statement
Net cash flow from operating activities(2) 4 7 25 36
Net cash flow from investing activities 215 343 428 986
Net cash flow from financing activities(1) 69 74 2 145
Total cash outflow from purchase of subsidiary companies 288 424 455 1,167
1. Repayment of borrowings acquired through business acquisitions is
included in net cash flow from financing activities.
2. Acquisition transaction costs are included in net cash flow from
operating activities.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
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 2024,
they would not have had a material impact on the Group's revenue or profit for
the period.
Goodwill
Goodwill Dupont Restauration 4Service Other Total
$m
$m
$m
$m
Cost
At 1 October 2024 - - 7,681 7,681
Business acquisitions 144 335 156 635
Currency adjustment 1 33 (223) (189)
At 31 March 2025 145 368 7,614 8,127
Impairment
At 1 October 2024 - - 782 782
Currency adjustment - - (66) (66)
At 31 March 2025 - - 716 716
Net carrying amount
At 1 October 2024 - - 6,899 6,899
At 31 March 2025 145 368 6,898 7,411
The goodwill arising on the acquisition of the businesses represents the
premium the Group has paid to acquire companies that complement its existing
businesses and create significant opportunities for synergies. The goodwill
arising is not expected to be deductible for tax purposes.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
9 Acquisition, sale and closure of businesses (continued)
Sale and closure of businesses
The Group has recognised a net loss of $36m on the sale and closure of
businesses (2024: $94m), including exit costs of $7m (2024: $17m). Activity in
the period includes the sale of the Group's businesses in Chile, Colombia,
Mexico and Kazakhstan.
A summary of business disposals completed during the period is presented in
aggregate below:
$m
Net assets disposed
Goodwill 13
Other intangible assets 1
Costs to obtain and fulfil contracts 1
Right-of-use assets 7
Property, plant and equipment 24
Trade and other receivables 162
Deferred tax assets 18
Inventories 13
Tax recoverable 12
Cash and cash equivalents 36
Lease liabilities (6)
Current tax liabilities (12)
Provisions (8)
Trade and other payables (156)
Net assets disposed 105
Consolidated income statement
Cash consideration 171
Deferred consideration (26)
Less: Net assets disposed (105)
Less: Exit costs (7)
Less: Reclassification of cumulative currency translation differences on sale (69)
of businesses
Net loss on sale and closure of businesses (36)
Consolidated cash flow statement
Cash consideration received 171
Tax payments arising on disposal of businesses (10)
Exit costs paid (7)
Cash and cash equivalents disposed (36)
Net proceeds from sale of subsidiary companies, joint ventures and associates 118
net of exit costs
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
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 2025, the total amount assessed in
respect of these matters is $83m (30 September 2024: $87m), including interest
and penalties. 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 2024. There have been no material changes in these relationships
during the six months ended 31 March 2025 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 14 May 2025, an interim dividend of 22.6c per share, $384m in aggregate,
was approved by the Board.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
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 revenue Revenue plus share of revenue of joint ventures. Allows management to monitor the sales performance of the Group's subsidiaries
and joint ventures.
Underlying Operating profit excluding specific adjusting items(2). Provides a measure of operating profitability that is comparable over time.
operating profit
Underlying Underlying operating profit divided by underlying revenue. An important measure of the efficiency of our operations in delivering great
operating margin1 food and support services to our clients and consumers.
Organic revenue1 Current year: Underlying revenue excluding businesses acquired, sold and Embodies our success in growing and retaining our customer base, as well as
closed in the year. Prior year: Underlying revenue including a proforma 12 our ability to drive volumes in our existing businesses and maintain
months in respect of businesses acquired in the year and excluding businesses appropriate pricing levels in light of input cost inflation.
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.
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
proforma 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 page 41 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
For the six months ended 31 March 2025
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 share1 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, cash payments related to COVID-19 resizing costs, strategic
portfolio review and one-off pension charge, and acquisition transaction
costs.
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.
1. Key Performance Indicator.
2. See page 41 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
For the six months ended 31 March 2025
13 Non-GAAP measures (continued)
Definitions (continued)
Measure Definition Purpose
Cash flow (continued)
Underlying free Free cash flow excluding cash payments related to COVID-19 resizing costs, Provides a measure of the success of the Group in turning profit into cash
cash flow1 strategic portfolio review and one-off pension charge, and acquisition that is comparable over time.
transaction costs.
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 underlying revenue for the period in which no revenue had been The measure of incremental revenue in the current year from new business.
recognised in the prior year.
Lost business Prior year underlying revenue for the period in which no revenue has been The measure of lost revenue in the current year from ceased business.
recognised in 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.
1. Key Performance Indicator.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
13 Non-GAAP measures (continued)
Reconciliations
Income statement
Underlying revenue and operating profit are reconciled to GAAP measures in
note 2 (segmental analysis).
Geographical segments
Organic revenue North America International(1) Total
$m
$m
$m
Six months ended 31 March 2025
Underlying revenue 15,452 7,144 22,596
Organic adjustments (14) (495) (509)
Organic revenue 15,438 6,649 22,087
Six months ended 31 March 2024
Underlying revenue 14,127 6,760 20,887
Currency adjustments (30) (171) (201)
Underlying revenue - constant currency 14,097 6,589 20,686
Organic adjustments 113 (442) (329)
Organic revenue 14,210 6,147 20,357
Increase in underlying revenue at reported rates - % 9.4% 5.7% 8.2%
Increase in underlying revenue at constant currency - % 9.6% 8.4% 9.2%
Increase in organic revenue - % 8.6% 8.2% 8.5%
Geographical segments
Organic operating profit North America International(1) Central activities Total
$m
$m
$m
$m
Six months ended 31 March 2025
Underlying operating profit/(loss) 1,289 416 (78) 1,627
Underlying operating margin - % 8.3% 5.8% 7.2%
Organic adjustments (1) (30) - (31)
Organic operating profit/(loss) 1,288 386 (78) 1,596
Six months ended 31 March 2024
Underlying operating profit/(loss) 1,165 381 (72) 1,474
Underlying operating margin - % 8.2% 5.6% 7.1%
Currency adjustments (2) (13) (1) (16)
Underlying operating profit/(loss) - constant currency 1,163 368 (73) 1,458
Organic adjustments 6 (33) - (27)
Organic operating profit/(loss) 1,169 335 (73) 1,431
Increase in underlying operating profit at reported rates - % 10.6% 9.2% 10.4%
Increase in underlying operating profit at constant currency - % 10.8% 13.0% 11.6%
Increase in organic operating profit - % 10.2% 15.2% 11.5%
1. Our former Rest of World region now accounts for c.5% of the Group's
revenue on a pro forma basis. With effect from 1 October 2024, the Group's
internal management reporting structure has been changed to combine Rest of
World with Europe to form a new International region. Comparative segmental
financial information for 2024 has been re-presented.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
13 Non-GAAP measures (continued)
Reconciliations (continued)
Six months ended 31 March 2025
Specific adjusting items
Underlying income statement Statutory 1 2 3 4 5 Underlying
$m
$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
Earnings per share (cents) 54.2c 6.9c 0.1c - 3.2c 0.1c 64.5c
Effective tax rate (%) 27.8% 25.5%
Six months ended 31 March 2024
Specific adjusting items
Underlying income statement Statutory 1 2 3 4 5 Underlying
$m
$m
$m $m $m $m $m
Operating profit 1,420 49 3 2 - - 1,474
Net loss on sale and closure of businesses (94) - - - 94 - -
Finance costs (131) - - - - 20 (111)
Profit before tax 1,195 49 3 2 94 20 1,363
Income tax expense (327) (12) (1) (2) - (6) (348)
Profit for the period 868 37 2 - 94 14 1,015
Less: Non-controlling interests (7) - - - - - (7)
Profit attributable to equity shareholders 861 37 2 - 94 14 1,008
Currency adjustments (12)
Profit attributable to equity shareholders - constant currency 996
Earnings per share (cents) 50.4c 2.2c 0.1c - 5.5c 0.8c 59.0c
Earnings per share - constant currency (cents) 58.3c
Effective tax rate (%) 27.4% 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 (see note 3) and, from 2025, net present value
adjustments on deferred and contingent consideration payable on business
acquisitions.
2. One-off pension charge
Costs incurred in respect of the UK Plan insurance buy-in transaction.
3. Tax on share of profit of joint ventures
Reclassification of tax on share of profit of joint ventures to income tax
expense.
4. 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.
5. 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.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
13 Non-GAAP measures (continued)
Reconciliations (continued)
Six months ended 31 March
Underlying EBITDA 2025 2024
$m
$m
Underlying operating profit 1,627 1,474
Add back:
Depreciation of property, plant and equipment and right-of-use assets 316 283
Amortisation of other intangible assets, contract fulfilment assets and 302 266
contract prepayments(1)
Impairment losses - non-current assets - 7
Underlying EBITDA 2,245 2,030
1. Excludes amortisation of acquisition intangibles.
Balance sheet
At 31 March
Components of net debt 2025 2024
$m
$m
Borrowings (5,667) (4,608)
Lease liabilities (1,449) (1,232)
Derivative financial instruments (129) (150)
Gross debt (7,245) (5,990)
Cash and cash equivalents 653 695
Net debt (6,592) (5,295)
Six months ended 31 March
Net debt reconciliation 2025 2024
$m
$m
Net decrease in cash and cash equivalents (54) (186)
(Deduct)/add back:
Increase in borrowings (1,279) (806)
Repayment of borrowings 108 352
Repayment of borrowings acquired through business acquisitions 145 -
Net cash flow from derivative financial instruments 53 (51)
Repayment of principal under lease liabilities 125 108
Increase in net debt from cash flows (902) (583)
New lease liabilities and amendments (198) (155)
Borrowings acquired through business acquisitions (145) -
Amortisation of fees and discounts on issue of debt (2) (3)
Changes in fair value of borrowings in a fair value hedge 25 (103)
Lease liabilities acquired through business acquisitions (80) (26)
Lease liabilities derecognised on sale and closure of businesses 6 1
Changes in fair value of derivative financial instruments (29) 79
Currency translation gains/(losses) 90 (24)
Increase in net debt (1,235) (814)
Net debt at 1 October(1) (5,357) (4,459)
Cash and lease liabilities classified as held for sale - (22)
Net debt at 31 March (6,592) (5,295)
1. Net debt at 1 October 2024 includes cash and lease liabilities of $34m
classified as held for sale in the consolidated balance sheet at 30 September
2024.
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
13 Non-GAAP measures (continued)
Reconciliations (continued)
At 31 March
Net debt to EBITDA 2025 2024
$m
$m
Net debt (6,592) (5,295)
Prior year 4,145 3,620
Less: Prior half-year (2,030) (1,751)
Add: Current half-year 2,245 2,030
Underlying EBITDA (last 12 months) 4,360 3,899
Net debt to EBITDA (times) 1.5 1.4
Cash flow
Six months ended 31 March
Capital expenditure 2025 2024
$m
$m
Purchase of intangible assets 167 151
Purchase of contract fulfilment assets 174 202
Purchase of property, plant and equipment 245 263
Investment in contract prepayments 108 112
Proceeds from sale of property, plant and equipment/intangible assets/contract (23) (35)
fulfilment assets
Capital expenditure 671 693
Six months ended 31 March
Underlying operating cash flow 2025 2024
$m
$m
Net cash flow from operating activities 1,336 1,330
Purchase of intangible assets (167) (151)
Purchase of contract fulfilment assets (174) (202)
Purchase of property, plant and equipment (245) (263)
Proceeds from sale of property, plant and equipment/intangible assets/contract 23 35
fulfilment assets
Repayment of principal under lease liabilities (125) (108)
Share of results of joint ventures and associates 19 30
Add back/(deduct):
Interest paid 151 118
Net tax paid 295 301
Post-employment benefit obligations net of service costs (3) (5)
Cash payments related to COVID-19 resizing costs 2 5
Cash payments related to the strategic portfolio review 10 4
Cash payments related to the one-off pension charge 3 4
Acquisition transaction costs 36 16
Underlying operating cash flow 1,161 1,114
Six months ended 31 March
Underlying operating cash flow conversion 2025 2024
$m
$m
Underlying operating cash flow 1,161 1,114
Underlying operating profit 1,627 1,474
Underlying operating cash flow conversion (%) 71.4% 75.6%
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
13 Non-GAAP measures (continued)
Reconciliations (continued)
Six months ended 31 March
Free cash flow 2025 2024
$m
$m
Net cash flow from operating activities 1,336 1,330
Purchase of intangible assets (167) (151)
Purchase of contract fulfilment assets (174) (202)
Purchase of property, plant and equipment (245) (263)
Proceeds from sale of property, plant and equipment/intangible assets/contract 23 35
fulfilment assets
Purchase of other investments(1) - (1)
Proceeds from sale of other investments(1,2) 9 1
Dividends received from joint ventures and associates 18 18
Interest received 19 20
Repayment of principal under lease liabilities (125) (108)
Dividends paid to non-controlling interests (2) (4)
Free cash flow 692 675
1. Excludes trade investments.
2. 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 2025 2024
$m
$m
Free cash flow 692 675
Add back:
Cash payments related to COVID-19 resizing costs 2 5
Cash payments related to the strategic portfolio review 10 4
Cash payments related to the one-off pension charge 3 4
Acquisition transaction costs 36 16
Underlying free cash flow 743 704
Six months ended 31 March
Underlying free cash flow conversion 2025 2024
$m
$m
Underlying free cash flow 743 704
Underlying profit for the period 1,101 1,015
Underlying free cash flow conversion (%) 67.5% 69.4%
Six months ended 31 March
Underlying cash tax rate 2025 2024
$m
$m
Tax received 2 3
Tax paid (297) (304)
Net tax paid (295) (301)
Underlying profit before tax 1,478 1,363
Underlying cash tax rate (%) 20.0% 22.1%
Business growth
Six months ended 31 March
Net new business 2025 2024
$m
$m
New business less lost business 889 680
Prior period organic revenue 20,357 18,545
Net new business (%) 4.4% 3.7%
Compass Group PLC
Condensed Consolidated Financial Statements
Notes to the condensed consolidated financial statements
For the six months ended 31 March 2025
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 2025 Six months ended 31 March 2024 At 31 March 2025 At 31 March 2024 At 30 September 2024
Australian dollar 1.56 1.53 1.60 1.53 1.44
Brazilian real 5.83 4.96 5.73 5.01 5.45
Canadian dollar 1.42 1.35 1.44 1.35 1.35
Euro 0.94 0.93 0.93 0.93 0.90
Japanese yen 151.03 148.06 149.53 151.35 143.04
Pound sterling 0.78 0.80 0.77 0.79 0.75
Turkish lira 35.55 29.73 37.96 32.35 34.19
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 such as the COVID-19
pandemic 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); 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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