Compass has shut down most of its sports and leisure, and education operations in continental Europe and North America. The caterer’s services to businesses has also been ‘severely impacted’ as a direct consequence of so many people now working from home and the wider COVID-19 pandemic.
Shares in Compass yesterday were amongst the biggest sell offs as traders disposed holdings triggering a 20% fall to 896p.
Compass at the beginning of 2020 saw 6% growth in revenues in the five months to the end of February but a steep decline already in March will see that evaporate. Compass has said that it now expects zero to 2% growth in revenues for the first half, which translates to a 25% to 30% fall in profits.
Now predicting half-year operating profits of circa £125m to £225m lower than expected, the group faces further share price volatility.