Compass Group – Making The Best Of It

Compass Group – Making The Best Of It
stevepb / Pixabay
  • Organic sales in the quarter to end March are expected to come in around 28% below the same period last year, an improvement from the 34% decline seen in the previous quarter.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 2020 hedge fund letters, conferences and more

Play Quizzes 4
  • Operating margins are improving, up 130bps in the quarter to 4.0%.
  • The pandemic is impacting Compass Group plc (LON:CPG) (OTCMKTS:CMPGF)’s operations most severely in the Sports & Leisure sector, where revenues are down 73%, whilst revenues in the Healthcare & Seniors category are inching into positive territory at plus 1%.

Compass Group's Strong Track Record

Commenting on the statement, Steve Clayton, manager of the HL Select UK Growth Shares fund, which holds Compass Group shares said:

“Compass cannot make office canteens fill up, nor fans turn up at US sports stadia. That is for governments to decide as and when the pandemic allows. But they can control their own costs and the margin progression in recent months is encouraging. The group see operating margins heading back up above 7% once the world returns to pre-COVID levels of activity. If they achieve that then Compass will have bounced back better and will be well set to exploit the ongoing structural growth opportunities in the global contract catering industry. Encouragingly the Group talk of a strong pipeline of new business, backed up by good client retention.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

We hold Compass because of its strong track record in controlling its own operations and generating strong free cash flows in the process. The pandemic side-swiped the group and they were forced to raise new funds last year. That has now left them well positioned versus smaller, weaker rivals and we expect to see them capitalising on their position of strength as vaccinations progress and economies normalise in the quarters ahead.

Today’s update showed stronger progress on margins than most were expecting and the shares rallied by around 3% at the opening.”

About Hargreaves Lansdown

1.5 million investors trust us with £120.6 billion (as at 31 December 2020), making us the UK’s largest direct-to-investor service.

Our purpose is to empower people to save and invest with confidence. We want to provide a lifelong, secure home for people’s savings and investments that offers great value and an incredible service, and makes their financial life easy.

For more information:

Updated on

Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article Nestle Dividend Stock Analysis
Next article Facebook, Twitter, Google CEOs To Testify Before Senate Committee Today

No posts to display