Compass warns on European outlook

You get the impression from Compass’s (CPG) full-year figures that the contract caterer expects that the second-half deterioration in European sales growth to continue for the foreseeable future. Yet management has not been sitting idly by. Measures designed to reduce the cost base have resulted in non-underlying cash charges of £160m for 2019 and 2020, plus a non-cash charge of £140m. The group’s ability to pare back its cost base has improved through targeted M&A activity, which has simplified its portfolio in the core food service business.