Compass (CMPGF) 24 Nov 202020 Q4 Earnings call transcript

Welcome to the Compass Group PLC Full Year Results Question-And-Answer Session. Hosting today’s call is Dominic Blakemore, Chief Executive Officer.

Following the opening remarks, you will have an opportunity to ask questions. [Operator Instructions] I will now turn the call over to Dominic Blakemore for opening remarks.

Thank you very much and good morning to everyone.

by questions this on joined to our I'm your answer our usual, Karen morning, Witts CFO, As XXXX results.

year one no been course, is but same, Of XXXX a challenging for Compass. the has

fiscal pandemic our the to and live the improving on emerge than controlling times, a shape. Although, we business, our ever can been. year We're operations from in questions. good evolving continue in controllable. execution of so adapting we've we're we the uncertain you. happy strong entering quality new strategy, now, And the to focusing We're and your take Thank we're

And take now Rollo ahead. from Jamie of Morgan we'll first Please go our Stanley. question

three everyone. right. got please. I've All questions, Morning,

and lower you on You've to X% base you're revenue get helpfully used us of saying margin given can to a the the guidance than company of do. X.X% QX

that in the we XX%, of should on of or revenue work about example? bumps back get loss about X% to prerecorded fairly X%? to potentially about home permanently of path from the online talking And you X% aware for presentation, of were Secondly, where and also what with of? thinking are Is a X%? revenues linear sort sort Just think should Is recovery, of it to the that being to it back lost learning. should we revenue to that be be sort road there X%,

I'm few target? mean so what what to X.X, run of to us through of dividend's And leverage about leverage profit sure it sort to finally, that helpful times, means, Thank math X sort times then, So the that. a impact appropriate does I when you and appropriate. might bring needs or also it of X.X of quite to bounds the just from within think if to what about X keen mentioned be you. mean, back to that the be happen. not can below And be the behind calculation would also need new boundaries the help just the

morning. and good Jamie you, Thank

Let guided the me Karen then have to tackle more to really this X.X% to the margin first I'll quarter. color. maybe morning ask Look, pleased in add and first we're any question

over So last quarter that's the any prior a have continued the seeing quarter We final of without a-third volume around really year volumes the broadly financial of improvement growth. new the first year, more down think will year. against

in presentation take how a labor And, value. and obviously, our and talk So talked suppliers the around the across put we about of actions already and we've of flexibility, that to getting create about X%, shown and overheads. labor will Karen's the lot that our We've SKUs pull. through internal the on restructuring levers us place planning. we've can in-unit We introduce rationalize taken action about to kitchens the pooling. you course, seeing that allows that through use continue both We've actions we've to today already When through. with menu significant in standardization, our we which is taken done we really coming margins can that central gross see

are. the on an improvement account guidance of when in we New isn't that feel see this what a we where first margin to And from Year? but beyond impact path could uncertain which Potentially. third another slow to all quarter. us us Will why in guide do? see see full-volume a little potentially wave together, the a require that. the our that's right of Will Possibly. course, margin give half unable So to linear? can accelerate say we to the obviously in that a the And kick wave the recovery, that quarter add we vaccines year, does predicated there. into side, we've impact we're on really the second could we've had then, momentum I of from if too think into in and good the we and taken us be world Will recovery, recovery things positive Look, second in from now. we

would So of for I of think course, too it's of this of other have linear. say to it out. be us be that us unwise we would the And, guide us part unwise to choices. It is far

to the a overhead and at recovery in remember, for invested to business have moment, continue for business. the have you So bigger we

We have overhead within Sports Leisure. &

And we business aren't margins. lower of where much course a effectively we've We whilst seen number vending we're have volumes. a contracts, margin invoicing within in lower of costs the losses, recovering on

show over So But all second lumpy, Leisure those way we could will add confidence which getting we've progress I we've is can That And year. that? we Karen. & see the too. choices in come there's we you'd got any think time up if a what back and answer got be meaningful more the way open take half the that will anything the there. along that on got full our yes, of don't was of to have in confidence in Sports X%

so, don't think I no.

Karen that. seems with happy

as you it you it is wouldn't to attempted On I to lost. of the on first describe risk give be. what we've X% say, view permanently thing revenues, the sensible X% permanently What the today could called a do to lost.

I B&I total. subsector. So XX% we Around that? our that everyone's say office-based business business is how of benefit, why don't the is size of half For

the quite return seen moment, seen working that is at we've trends environment. we have a in different where industry to which So predominantly clearly manufacturing,

that sector working than beginning from of on to directions could emerging the at cohorts that's home. think of employees' on have to major effective desperately projects for conducted in the average, the the for be be therefore unstructured home. X.X quite an a environment. basis it containment managed would moment. XX,XXX have to data working, a office course, we're what employee management. days pandemic, survey also the XX a is employer. the we're the at development. it are around there and who through or access clients allows choice is coaching -- X% both awful think in just greater They you that that one And give to to and personal concerns was missing swinging a XX% coaching, potential permanent X.X resounding the team about was to heard of office pendulum to an see to and really by of know pandemic of employees environment a of people to balance about was X% impact And now in rather necessarily The there we days mental We the countries have well. great. home I we the we them more in points lot live of out will working-from-home whom and from to a a CEOs trends. within for don't important want environment business. also is our it risk are our in Pre-COVID, and technology that. houses few work particularly We health attractive cost development. either of that the multi-tenanted assumes the how XX% the it lot people rise again we And between But to broadly cities, that Within At hearing and on know on say, two office as and that And the teams, the to home that creativity, is seeing And using isn't for how technology of lot the office I

we've Could Quite I described very, And us at it it Ed foodservice as be and less? sectors. that opportunities revenue to with B&I So well EAT which possibly. about well we're acquisitions the at Feedr working mitigate models smaller talked on risk. as by Club, both targeting just give a hard and as around looking that we've X% X% quantified very into other other tech-enabled in to Higher businesses like basis

actions the just clearly over taking Karen. expect and mitigate all point, and the the then me risk, So think dividend cautious the on hand we're actually being to to but And I thoughtful you'd on opportunity. let we're take that

one And we'd is XXXX. recognize heard position; full of get recovery. quarter dividend, be to important to and we to Dominic. take what stakeholders. is to But QX. in we we confident already calculated, Dominic's given importance perspective, Thanks, we will our that we And said, net pandemic the in in have some on a, say X.X the our the us it believe remember you've positive X.X% peak also business. leverage the but pleased from margin our we the going into that Jamie, The b, to will of just pandemic don't from leverage this breakeven early damaged our has we I dividend our March for and said we ratio that very hope we've calculation. regain the hit are times, got it to the we Hello, you and this from are reset debt-to-EBITDA margins target I yes, is well very that would way morning four were that a guidance that Also that structurally

it anything too So I feel early to that say is just now.

give we to trading We you will some update when continue -- updates. the

another way do. the on we full expect such Could above as what margins would you're first do back you it come way be another that at I revenues can that you saying? Is to Dominic, that X.X% it? you're at question? Is look the look Sorry, get that if saying to

look really possibly this We've found We've rationalized mouth But We path our greater ways think before. our a value saying through now overhead. purchasing. my introduced see of than you're words I lot is what's we've Jamie. menus level within our ever to a create -- we're in being learned margin. to haven't important historic new of That's we Right lean putting in back had pandemic we've flexibility there we?

back that we full like without level volumes. said creating of volumes if look historic to the think over We'd volumes future? opportunity for the the a to path is get come If And back, the So our come X% we are margin? do we'd so. back

Okay. Thanks.

question Our next Please go from Aziz UBS. ahead. comes Bilal of

very question. you much Thank my everyone. taking morning, for Good

me ones quick from three Just please.

write-down margin when drivers be structurally different Secondly, think Just with should conversion with with incur the you at you you ahead, do but resizing we about finally have with or bit wins intensity structure to bit anything particularly capital are second into start fundamentally regards for done regards is now XXXX, outsourcing, this the a visibility thinking on half; way Thank contract your major the any first-time different we pieces costs to or new need contract probably stage? should majority anything about the thinking guidance it of this, comment a to And the early you may seeing you're regards to moving to do i.e. we think with is think margins? you. that? how to about or

Bilal. cover costs. I Karen you, the you on Why can and update Thank resizing Thank then you. first the don't two

drivers, value. creating in anything I that to within described earlier, to to sure would we've value. comes we are it digital expect a a we've our creates apps menu standardized But necessarily provide I seeing order what as rationalized But when different bit we're look counterintuitive sound greater might had say our and technology, the model. flexibility That So consumers, offer more you dramatically margin I'm menus. have operating as our digital seeing when not to within is

using the before that labor, We're using labor done also they greater to no our front-of-house and labor, create across also labor of for the or using redeploy or seeing allows to pooling less opportunity perhaps opportunity within in technology. have opportunity having from offering care given agreements city the in the agency way B&I a So have again within us a gross technology costs. created work health elsewhere labor but flexibility, that employees education new to on less us to reliance haven't it margin does

seen margin. you've margin run above-unit So of give in-unit as overheads. of us our taken we've today much XX terms as Yes. And labor? pre-COVID that opportunity a bps a in does would rate be out £XX that million clearly or of In XX

back necessitated So is it's that only we that drive we'd or a value and overhead lower creating to overhead volume base recovery. a well, can towards like as put by think where really cost

the last really it's And we'll think of I'm the margin sure and So terms in we up get business and yet were an side in into of I that mobilize we different months. lockdowns sectors. excited not in but see of existing but the hasn't we that other as eight we're as it of all then some very It's book outsourcing, just mean vaccine-led evolution a by Obviously of drivers, to world. first-time exciting a signed the opened I hopefully been P&L across that way.

What So is health a that it's that it believe -- really We cost-led. been we're there's seeing in before. crisis, post-financial think sectors, We're bit has care you been we're is using capital. And was in a slightly if we're good. -- than different first-time demand competitive deploying still so more outsourcing advantage. it seeing

and this about chain, health in I for their it we resilient but And can also apply offer we've and safety, trust institutions education truly come. seeing think is and that now having can suppliers we that. care supply led. that lead we're the and had believe to health really they from on them are learnings in will capability years This reliable help

an there's we've capital opportunities. differentiate in before There's believe will guidance. that the space. resizing Karen good There's as incomings, that over us exciting again, to for we do So but pipeline. done using Then

Okay.

So do One we which of speed on that volumes the depends combination out. context. is, resizing Any into a at come put let's bit resizing just of factors. a

be Second legislation the the And of help are to that is, the jobs. third of levels labor labor might is, government support and place, legislation. in which protect the there flexibility

to from support early more With Europe. it government more but a £XXX was focused early Latin that you more been America -- do we the to the that's So this and is it back than We've XXXX, resizing, objective really now U.S. update in on with FY government more where labor announced received the alluded and we off in legislation peak. the in and restructure. announced allows bit has and QX, this of million I've and things. that resizing to tailing and two that easily support, its is in some resizing

carry to with work So labor happening got to patterns in that order sure to labor our not excess what's return we've make and our legislation. costs, mirrors

themselves moving we £XX our We're our the going is to get for If extent government million have getting margin the how back receiving to governments but support, the come the resizing the their to of which and £XXX is on MAP which X that's or on and So target. The to combination the that will be we to charge want MAP more cost rightsizing and going bit that X really is MAP million back a slowly X going dependent forward we and that to be place it frequently. which that, blocks the that are quite is do a still we primarily then of building a to. announced overhead for quickly are will a view changing volumes cost do MAP million cost X going of avoid primarily our to costs. we've announcing focuses of and £XXX avoidance, costs one restructuring £XX that of and million be important management-layer

Brilliant. follow-up to And very see minimum please. a Thank wages year $XX in next quick your impact going you. business you Do on material the please? any for just up U.S.

was question gain we the from Sorry, do it?

broader your impact And margin that. from

our with mean, through simply wage actions. we I the the from a on minimum revenues two. we'll protect wage margin any been driving further we do that to increase of always through of And clients negotiation need recover living It's Sure. those inflation. higher our Typically, efficiency. to or seek any balance obviously or

you very Thank much.

comes ahead. from Stern go Vicki of question next Our Please Barclays.

Hi, morning.

And a about wins. today net around X% you back I new firstly coming North signings in Just doing year. talked you the mean, pipeline. positively historically new particularly the quite business obviously, America net the were on strong

net talk appreciate Looking back previously mobilization X% through whether coming new? point, learning. on to saw you sort the about I you next but the on get you can your slower level And plus XX months, back that just on view can remote that of

the the what a business much it of on do as there, more just delivery. finally bit that structural more out you then just are some that to saying flesh on view little opportunity broadly you're assumptions to details Could learning gave and new work-from-home remote X% And part you sort as Is a in You X% on segment more likely of higher wins attractive forwards? going for there? on your Are change. education?

you it's to for Just allowing a I about and concerns a businesses overall we've delivery got becomes BXB perception been more, delivery. considerations COVID's been rollout incremental safety would would for for more the demand offices? catalyst catalyst have you say flexibility but suppose pronounced, that for or a positive also positive as negative been work-from-home My talked because

Just for market your to offers terms do material delivery be that two think? see in where overall that would you for mix going of sort how next forwards? do be years? to you think three the you much do that you in of How And can the

thank very Vicki, much. you

first. take sector was Yes, so volume and the on in that seen really despite the business today care look, been today clearly in a was thing do of basis Let new there's an elective is book surgery. fourth quarter, me growth net of – business analysis we sector annual to One said I want have from and the positive. back grew the the impact in signed in health in suspension our half that significant call second you'd out we that

on a very we're sort is And contribution forward. we as the net leading sector in sector, so good that business new think wins focus we what's of industry a which And has want care. that I underlying been health to that look in

modeled in that's that trends have looks finally, will good. do see we time. World We the to the we And underpinned study that outsourcing. the we that that making pre-COVID. to Those think back the we with I we in see there'll said are will get hopeful acceleration in we'd think pipeline X% We where seeing it case as you we The we're therefore, even believe look, of great we of blushes continue think the I we're it strip strategic a And be very better Europe comes believe believe over historically. And out. we're an changes And So I first-time I Rest back, that performance of can region. absolutely When learning, do how there. think there. saw, that remote that a opportunity. everything resilient first

we're what learning, think and I taught academic of hybrid and I what know sector we're seeing we're a either remote the is reasonably well now. seeing seeing remote. model But

I about remotely is to within other campus students just as but given remote flight from a there's think there to a not doing quality where truly countries. well, it coming

it again experience. collected be So solution, remain with our I within But a most sector. to be sector. will that which see an students that want think you're of different can consumer still And the want sorts digitally-enabled therefore from research trends exciting on-campus fundamentally, academics which residents. and all tells delivered can particular course, to us is that we've they of with to open on going that And students campus points full done –

there. sorts all there's options for think I of us

remains So I sector. an it think exciting

lots seen different huge scale. campuses America, course, be is a Of audiences. North there tremendous you've of us can how where There's in these for

got academics, the students. got you've You've the

better things couldn't a delivery. brutally We all have we lot. the at three in prepay the SmartQ roll in forward. sporting made on allows a continue it's will We those India, sector we've acquisitions, evenings. honest. some we've out Very can we'll remain therefore, exciting pre-COVID, lastly out, learned then And look made invest developed the true. to home think have app honestly, to book accelerated. events. called of to if time Look, that but for which in meal have those XX alumni, acquisition And to who the there that I'm through a two got to I small kit your post. you, as one got we believe a very things You've in take And an you've you slot you phenomenal taken pandemic TimeXEat, preorder an cafeteria which we've meal countries delivered and have you technologists rolled got

the to U.S. learned technology as we've on in the vending, pre-COVID, subsectors, volumes a these had of as way right built we our think now. built and grown I them most combination that coffee, would tech But there depressed an now in them their CapEx they million. way solutions Club be the the invested circa Clearly companies the We've M&A. we've acquisitions. we've we've built West of office of lot is and in scale different. And when cost we we delivery. forward. from the of go delivered EAT We've already. hope access smaller awful of So may acquired deliver. Coast around and the price closed. XXX volumes certain food logistics and expectation got But North America be point as We've There this form all-in are There's to of million XXX to recognize is challenging locations

we as tested that roll I a an us incumbent actually, And for caterer, models now positive think it proper it gives us think can So that advantage. net forward. we got business we've becomes the

you. Thank

on follow-up a that. Just

sort for And mentioned similar points. be you different price business you presentation that talked obviously margins to sort X%, alongside that attractive confident but lower it. still earlier to that one could an complexities Would of or You get there's be about, the structurally a would in? above in be business of you

we different. Look to central to understand have the in all in we kitchens estate central office locations. to is high base to can't in of is real that don't can can place the cost tells high a significant at have scale commissaries portion delivery or get and think produce experience We willing consumer the the The Yes. margins a right a the way the I of site. be on need We pay quality. because us evidence that kitchens that our in the cost

address there's and to means challenges. for ways think us those So I

very Thanks much.

of from go comes ahead. Citi. Please Ainley question next James Our

please. morning me well questions as from everybody. Good Three

give could January? one, plans about First you are their in-person in bit to the picture. vaccine you to is to what saying of a color A us teaching of universities in return

Second presentation bit to the And there? related of about us mentioned the macro just color you we can And should in give what that continue to seeing And into finally business net and from performance? Europe presentation XXXX? on action then plans that to thoughts the you. new here again to post-COVID expect just your you lagging clearly environment. decline a hear improve Thank DOR about you're that trends, notable

Thank you, James.

it teaching, So right return bets to comes quite the frankly in look or when term universities' off to are I all now. think second semester

regime. up dull our year. to almost really independently in our quarter I are all and margin winter We're greater we're is seeing think and second also the actions I may U.S. half that now planning lockdowns are volumes -- it's under Democrat We government being a of think for taken in of our every change volume And unveiling sort plans. very recovery. exclusively

the vaccines and to is And financial XX% to of about think see we our weather. in So second benefits our talked until sector better hope the those we or and planning particularly quarters the in the the as year vaccines minus better half kick well. we in sorry starting on of better higher-ed see testing, the I sort really that across piece of assumption

picking I actually volumes and starting see comments actually the a due but had with LatAm to in a of DOR seen team Sorry, We've call little up we're yesterday quite not tightening lot. macro. our bit And volume to significantly there. on a production,

very that called resilient of recoveries our new So within us that portfolio we sector for of economic pandemic. in governments largely it's And And of construction. not business infrastructural lot won would a and part benefit and We've through out major from today couple is that been us the sector investment good in markets. sector. to very any as a course that of pursue we now a production

Europe been up a that off. also I isn't So and increased new Europe, has of because that by sector It's from runs volume. our volumes headcount a on that's most and And impacted B&I shown think business retention. then its just driven it in huge benefits sector and in region

trends We're business difficult on we've and some both in it's great Europe. in the teams. biggest We've In recent regional having activity. excited read markets. particularly probably U.K. of the half in the faster seen to think won deploy hard weeks our the digital second those We've about I offers because worked Continental So slowdown new the pipeline. we've invested very to in

it's we a will health So in care. And that to will think also of activities seeing and to combination particularly help our benefit invest a U.K., think we're that those as public the exposure education around will we in sectors we already think governments that us. be net And markets.

in it's up the And long just think take mean, to follow to I to net Europe? you how on improve do going Continental that for sort of new trend business

we've got And We we'll recovery We're better light Europe. do volume these difficult updating now to do very to presentations. open first. the we'll But a to James we've It's look, we in navigate as know right through got keep because say to question. you. it shine on very the

you. Thank

from Clarke go Please Our Bernstein. Richard next from comes ahead. question

morning. my taking for questions. Thanks Good

one back -- the X%. first coming the to Just on four X% to

looking you'll You be through the business to mentioned in mitigate presentation that new wins.

you what confirm pandemic, able -- streams it be if the wins up to question wasn't to of just have the because new wasn't this new said that to i.e. you'll X% that would positive mitigating want X% Just where new on new net the Do levels, the revenue it XXXX year. if means. to back -- you been for think revenue following existed about the wouldn't it for streams Second will have pandemic? you wasn't mitigate if back do there or mean to be what Vicki

of you actually just million. number You a £XXX million £XXX in CapEx X.X% -- of more kind Any you've what then mentioned win normalized guidance similarly, normalized So impacted. level? revenues terms given what And the hint of did the to in the is is XXXX? that on on so

up gross compared are did little of albeit to half think Should other new of components of a XXXX, amount wins half similar there. first the I take you or first about first of wins? new XXXX, we I'm there XXXX £XXX there the think therefore in half and million, net from away in CapEx mixing a bit that to

Thank Richard. you,

two I'll over first I Let on question. the then first me then CapEx. may Karen analyst your hand If was definitely be question so take bold to an and

We social of pre-COVID our well of the -- restore scale as account base remote business is are taking trends. distancing profitability B&I its impact and first, look our third into as to this second, recession -- and to potentially

that kitchens. new existing smaller confident or alternative that So, a which we piloting SMEs existing about for don't wouldn't need of travel clients previously that look factors or it's are we But I within companies to solutions now us may access and part, out as markets time we to of talk delivery have again. mean we our gives for drive set we've It volume how we look allow In can who We we've had us rooms that that talked mitigating can when we over these cafeterias models. believe access footfall with the accounts. models combination to And see today. we're combination the do we? about factors through

from to to as first-time focus work very, more increase our couldn't then, see We're sales well to outsourcing. previously We to going component course, And client we base education. opportunity talked as teams that. on gearing the think the we'll hard today of we're within we've exposure about like-for-like B&I up and to. on new very So, healthcare our get that we want

it's then the the how depends So, combination net factors on it mix half it's it? is across second therefore, have and depressed Look of broadly, business to But of which down volumes a new been from. within business more. B&I has And least sectors new XX% going be by and XX% been our our at sectors impacted if come too. second half not business and that

have XX% calculated as those it volumes the because precise a we that? that lot volumes of think over that that than reported on-site Karen grow and better and won't If value we are a new that math. number today. full you our would annualize new is some on wins we've you new even is I can't tells contract done a us give But directionally, business last opened. for for CapEx? And year business you XX% on

level linked we're committed. CapEx, to actually way seeing about the because guidance -- that a guidance morning is to On already given first CapEx the wins million new of for that of £XXX million in of is Richard, high business that back the £XXX we've XX% half the

means have won. that what we to relates So, it

depend on where be through that and Now, when mobilize bit a number it clearly, when comes variability it could there contracts. well will little of those we finally because on

CapEx. Maybe a follow-up quick Thanks. the just on

mentioned X.X% X.X% the gross X.X%. You was in the -- is and XXXX net

XXXX get you the sell in back you what's the there? to were So, difference to able What X.X%?

-- I a -- overall of would sales X.X%. It's within a be just X% mean some assets year, reductions we number. assets. it's within But in -- the of very sit guidance small we stick to we normal of

But that XXXX. in smaller we likely in a have I invest good number we think growth. absolute important us for that to is contracts it will

Yeah. to and our the on that we I We've be important are a model. returns and confident so. continue tested returns we've previously, will we're of achieved part it communicate mean, of that that ourselves remains very levels those

to have is to We we questions, in part the that new? moment pipeline, of pre-COVID look, a if of part as post-audit. time to if This in we accelerate then And we'd business if approval it's we the opportunity back can net comes really Can restore strong the earlier exploit important – levels? processes go strategy. like the opportunity,

much. very Thanks

Leo Carrington go next question Credit from ahead. Suisse. Please of comes Our

morning. Thank Good you.

kitchens? base the landscape well, in Sodexo, in And those the mostly competitive just vending also in been or Firstly, as to U.S.? are and sorry go actually or you at your if just the has vending why in and the pipeline, nth delivery, support follow-up business, question. there And vending an again, can guess, such new has are a there's can Markets mentioned on of they business And central I as traditional proven in been or wave business CPUs such sustained a of see any normalization, the mentioned, and as been period? ask then likely consequence it's I – step-up of to through their such a change the the first-time then new from new a in Capital you grab some outsourcing on be units been from in Day. not say past Europe outsourcing itself the But pandemic for back you looking opportunity replace quick value not production the would I way also, has to guess past? a then this of

take Yeah, Leo. the me first. question let you, last Thank

to a think What we in I too incomings is we first-time early we component say, see and the into is lot we'd here of see convert robust sales and also outsourcing, a opportunities. that within of to step-up. sustained see strong a that do like a this to pipeline it's be likely whether

So acceleration. an I the early signs about, think seen we've we've talked of

yeah, parts six cashierless It bottom than business. from offers spending. that on after it's now I at to what all. hot-meal progress of don't in think we're describe real the to the CPU sort we central vending see of comes to how touch that's the to quality your it we things really would It's in from this to focused delivered and into report mood our we landscape vending, again, just we of Vending converted the years. or enjoyed Street. us many and And technology to consumer said and a the North first-time line about benefited the how you. success other growing up will the from been at last change cashless. America from having over When We we open top part up our High a why, And don't that moment. do. we of been actually the �� because sooner of has was by is vending. outsourcing, It's happen. us see in expect a these invested proposition do on It And that's typically to because benefited kitchens. terrific in It enabled before I've portfolio invested five question, we now it into it. we benefited sales in double-digit financial teams, crisis, solution the

large-scale said, for some for used care have would got we have XX health around been we've so as the production They or been today, purposes, into used So deliver schools. to various world. different

Some have snacks the across sectors. of of them of so U.S., would all be network to Spain, And all it be produce the Germany, What now repurpose hot-meal gives seeking packaged We've we're options all solutions in vending. them would across do in to that our markets. into we vending. got U.K., them us is for Others major France, Australia.

subscale course, So opportunity And relevant of have on-site just gives use also economics them, work then, a more the clients varied we're in but vending if think I the us and about become us offer. the question there. excited for was it to your Europe. on And more to then potential

that all how learned that offer of wanted, the We weren't different network. America. provide have business lot have in the consumer today, We our able vending vending a choices of through presence different was when we we're to there a at North sensitivity, it had in accommodate We've when built the business looking we've that. ways. invested actually a sort And of can to that changed. a whilst as we for don't in machines the European always consumer lot consumer And while, and struggled price SKUs the

you. Thank

Marden Our of question next Jefferies. Kean from comes

Dominic. Good morning all. I have two, apologies

the characterize an you as think first analyst-type question. one may I

this about you're and half if think suggests communicated the for the year? for But something at Karen. narrative slightly margins And maths next a of XX% question be then correct of a appreciate like the sort sort in as you've HX So second year improvement we I It business we of -- look reluctant on that recovers. revenues margin margin today? to quick would revenue if incremental sequential -- on the

You interestingly of X/X-X/X-X/X, about in a bit earlier was you contracts characteristics those place. still I putting some referenced but a talked this mentioned when bit. your contract floors of quite And you sort that little the have split guess changed

potentially So back reverts maybe of you what as on the prior sort those contract improves? sort can environment post-COVID to and of norms dwell

questions. those for you Thank Yes.

Karen. points one one and seen first think quarter I'll guidance, XX and have remember incremental take the what quarter of then four volume we hand On improvement. from to performance, first all three to to quarter we've of Just margin probably quarter then to -- quarter to look that four is four I only

we've negotiations as into flowing previously government P&L of contract extent for the it's and roles the you to into support first replacing step that the what So entered get is from change the furloughed isn't benefits and such. resizing the

step XX% apply. in margin the I don't be changes inevitably rule operating that you won't think therefore get So our can And linear.

all through very think depth you it to process of the about through we the If went a deep renegotiate pandemic contracts.

clients many what were with doing instances in we our we there Now invoice losses. is could agreeing that

as a expect to But it's guiding the come continue thumb to and heard today, from X% to minus linear in I strong quarter of we in actions. only to do the volumes? volumes build means, back you've to our apply shows a it fair lower how to progress need an rule difficult that benefit see margin conversation gets there we're what's with X.X% we from margin. That there's -- to I a to. say make When first improvement, have us get step we a As margin. not back of X.X% lot strength going awful how another And of of on we think here. the come us really to on says we'll from back we structures? work then volume the old And the clients the with change that, it's XX% which that mean in So

answer let me to So that. I just think continue Dominic of that some question, started but with

right. you're So

to pandemic, units Our the And But impact still contract from and business response given our very clearly able to like open our the general. we about great of in had is actually X/X-X/X-X/X clients that be we portfolio. profitably. hope we've

got tens renegotiated And of have that thousands to we of renegotiated. needed pretty group. We much everything contracts be around the have

So the have job done teams here. phenomenal a

contracts are signing we forward. some the doing is sure of kind need that permanent. be going we're robust will we renegotiations got Some What that, to that new make going we more feel when are the of sure a have will that we of protections we're be nature making temporary

get clients protections we've we're now the in in right But CapEx always volume kind with our had So of too. buyback contracts. protection to working place

Great. Karen. you, Thank

Our of next Tim question comes Numis. Barrett from

everybody. morning good Hi,

Can think you telling haven't are know feel topic you you X% very much. I Just what X% profitable it's I about in talked of your it about you & permanent a clearly are do term? Thanks & I us fact that no within talk how think. more of the mine part of a Sports about And Sports business. resumption bit you guess Leisure? but very XX%-ish, left The clients Leisure? about tells one longer But there to your revenues, only changes.

Yes. I I feel quite may. positive about Leisure if & Sports

A at it get think likely is then – small – of it's in bolder of will allow now back binary? is into I open the at is of which our vaccine stadia. sort first. Between lower and to we think albeit us to levels. see advent reopening I plans done business I a hospitality, will think lot

will And get for from. publicly there's of and open for to to think privately a these think us. sorts So positive that benefit everyone is I back incredible I events an

to in being be it So reputation. over to to I allow be near-term believe kept it. best we've to as our our believe net positive time. operators that able the we to U.K. the we do possibly as that deliberate reopen because going also believe and and we Sports want quite the Leisure management & is flawlessly can in challenging in us teams enhance And intact winner a the would in we U.S. about the very that we've we've been We've feel and industry We kept. got

naive. So being we're hope not I

very vaccine of amount there's strong the pent-up is will demand huge can all that a important. think I I believe we and as also But imagine.

guess in recovery first you it's said because binary? nothing pretty And I the the quarter, in Okay. assumed margin

with that second half. would No. activity We recovery May, back Leisure see slow the which very in we recovery much in line some about assumed Sports the talked in & the case

Thanks, Great. Dominic.

Thank you. Thanks.

to Blakemore closing now gentlemen, our session today. back question-and-answer comments. call like to would I for the and for or turn this Dominic Ladies concludes additional any

We've morning. well a year say all for just your other thank of each very challenging to like and over you to the all very very contributions been for got I'd years it's much know this us.

and further Compass, – Thank forward of Year, restful look to to peaceful having we'd New you impact when hopefully news and for a So you updates vaccine you. We break. business. our and to Christmas the hopefully, the like on wish very positive from some talking in more a positively

participation. concludes for This call. your today's Thank you

disconnect. now may You