U.K.-based catering and outsourcing group Compass (CMPGF, CMPGY) brought the market up to date with a trading statement before its year closes. Its business is still in very choppy waters but the company is working hard on breaking even. Management have impressed with their performance in the fourth quarter. I remain neutral on the name awaiting further evidence of a sustained recovery, but the latest snapshot does suggest that it is moving in the right direction.
Business is Still Down But the Trend is Improving
Revenue is projected to be 19% on the year before. However, Q3 was clearly worse hit than Q4. In each region, Q4 showed a mark improvement, especially in Europe. It had taken the largest hit in Q3, with business down to 47% of normal levels, but in Q4 it had recovered to 61% of normal levels.
Source: company trading statement
Despite the improving trendline, revenue