Compass Group

Ticker CPG

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Market closed
% change
Price Pence
As of 10:41 27 May 2019
Market cap. Pound sterling
28,806.45 million
As of 10:41 27 May 2019

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Compass protest

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There has been a protest vote over the number of boardroom seats held by a director at Compass.

The contract food company has revealed that 22% of investors at its annual meeting voted against the re-election of Ireena Vittal to its board.

According to the company's website, she is a former partner at management consultants McKinsey and also a director of Godrej Consumer Products, Wipro, Indian Hotels Company, Titan and Cipla Limited.

The company acknowledged the scale of the vote against her. It said: "Over the last 12 months Mrs Vittal has reduced the number of non-executive roles held and the Board believes that she continues to discharge her role at Compass Group plc effectively. However, the board takes seriously the results of the AGM and will engage with shareholders to understand and discuss their concerns regarding over-boarding".

Compass meets expectations

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Catering company Compass Group said underlying operating profit rose to £1.74bn for the year to the end of September, from £1.63bn a year earlier.

The results were broadly in-line with market expectations and the company forecast a further year of growth ahead.

Steve Clayton, manager of the HL Select funds, said: "Like many companies with large workforces, Compass is finding it harder to get the staff it needs without wage rates edging up, especially in the UK and USA.

"This is the environment when managements prove their worth and so far, Compass seems to be handling the labour squeeze well."

Compass revenue climbing

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Contract caterer Compass saw its shares climb 6% to 1506.50p in early trading this morning. Why?

It posted a positive trading update for the first quarter with revenue climbing 5.9%.

Danny Cox, analyst at Hargreaves Lansdown commented: "As always, Compass are focused on the fine details, driving efficiencies in sourcing, operations and management. In the UK, this is all the more important as the group copes with higher Living Wage costs, in common with other labour intensive businesses."