Compass (CMPGF) 23 Nov 212021 Q4 Earnings call transcript

Thank you. Good morning and thank you for dialing in.

You’ve seen today's results and heard our presentation.

We are really, really pleased with what was achieved in 2021 and just as excited by the prospects for 2022. In particular, reinstating the dividend was a key staging post in our confidence in recovery.

better is business, is opportunity I've never stronger think years my and I an been the such in never or what most in important ten we've exciting So, market. in placed seen more pipeline mean The exceptional. What do that? is I by wins regions. reported record We've in all

are We ever. more time first converting than outsourcing

recoveries strong very in seeing positive momentum our factors. We’re and

wishing opportunities pre-COVID You've to fully choice to exploit sheet have the got the balance That of scale. digital or restoring ever shape partner and of sell climate growing and these all offers for to before. the faster than businesses to size win, we us and we're all points and our

we've I there scale believe take a joined stepped have are permanent of know have tailwinds challenges, term morning. longer-term for us truly up the the I view, CFO we the opportunity. these and ahead. over in but actions will months growth deal XX our the new, experience, set Palmer to Brown, performance years more are ultimately create period we When back past As a means that this taken to short strong them. by with I'm

you. Now call the to questions. let's Thank open

comes Thank ahead. Instructions] our you from Please Okay, very UBS. Bilal first much. from question Aziz [Operator go

this two, said my think a outsourcing of sequential And Good wins the your time more do that the Perhaps presentation. win that just more can year, guidance, business of The and side, normalization taking implies appreciate low everyone. just a committed you I improvement. morning, Thank from forward? perhaps Thank competitors expectation then of rate bit may were an forward but you uncertainty. perhaps, some the One you that you. get seen on you you Dominic of new going trend, out you've end XX% the revenue questions. is on the suggesting October, idea what sustainable rate going pace of my on and you was by now? two And for please. any grown what have the Vertical comments, And November improvement flesh your by in number firstly, clearly first to

I'll thanks second speak business Yes, rate to and the to wins. then the take new Palmer of question ask first Bilal. I'll

of year guidance XX% XX% level broadly by basis quarter. exiting So, in terms a of to on XX%, the around means full at, expectation that an revenue XXXX fourth that to with XX% revenues of or achieving of the XXX%

just and by some what And of probably it's way question let seeing terms outsourcing me worth we're what but we're too. seeing to sector, might that in of also terms perhaps stronger start terms illustrating of we've in in trends. sectors first-time your In seen what trend, first with answering first the go volume

consistently sectors more our XXXX defensive with levels. So, if sector start has we above the performed healthcare

I think pointing a of worth couple it's out things.

Let's which remember that our around is XX% recovery. is way portfolio some retail from of business, still

talk living higher to and expect we and are next would due to we senior particularly are that we in would we sector once And tricky additional very over few win treatments the finally potentially And volumes expect our back come the there days continued to months, It's that time space. longer new clients for we've clear shifts. that all to world. in more through expect And strongly the today, therefore, around we clinical course, sector. see particularly then in business in hours, waiting do So, separately. lists see as that

the to happen, we with the opening new beginning of spaces, see up financial they and year, single, we healthcare in outsourcing we've biggest the the put these did A&M of and tend education often living respectively seen first-time first-time outsourcing. like more things Texas And space. pressure on the in within Ascension senior when So, the

So, Again, and levels. take offshore above continued remote we pleased consistently share XXXX to again, are We really performed defense, pandemic. through that. we've the to with next in move really, that sector

the points expect forward those retail on levels were, looking couple they we again, to would back sites think where I not to are recover. a of continue

Secondly, significant for as global expect do commodities recovery. we gas oil, we and there witness be to economic demand

start hydro, And and so, then and continues contract wind again, that see and forth, as there's new so to emergence we a market. go that time. through little about sub-sectors are were we now broadly winter, new I’ll of a opportunity We've months Again, within be little education. the opening expecting three the that sort higher return. see may seen strong recovery a we impacted, And for bit Thinking within few education. wins, over to there hemisphere sector opportunities the next volumes lastly, of up in but northern that more the farms, in with as seen strong we've the sectors slow very a

very virtual It's students space. that more academics learning, ever. than experience. the students and within campus about particular, where in keen today the concerns seen higher less we've returned. social spending They got are and more we've particularly participating think clear on are And have both I Ed more,

around think I those in the space of the Ed and provision pandemic learnings factor. So, And quality. the all course, have are of that lower of in positives again, nutritional been food

there. to expect looking everywhere moment course, open. And to lots strong conference centers, recovery seen of open, remember be aren't therefore you've opportunity we XXXX, & to space, roles to just we of higher Sports up of institutions more, quarter you've Leisure, fourth at and XX% odd we see strong. sort a In in not assets got very for but to their the from we work Ed that a so, government And investment believe are

artists, events touring international the artists and therefore, not yet seeing moment. lesser are We’re at there globally still

spring And is also to touch in summer capita expect strong it So, of indoors, we're months, a the and sort that strong we do next slow all be sector spend. beyond the recover. year. Again, it per coming events but those witnessing as of may expect over of go we to what

space participation, But seeing working clients food office, in lower to that longer today. of to office the Slightly So, compensating. we in than ever. providing which of strongly of spend talked And an We're picture is higher in kind others. which for whilst probably offices. anywhere manufacturing levels we between have about some is higher protocols into return, I which and again, finally people we're higher bring need to to than reasons of operates, about. obvious large we workplace our spend In down, the think, our XX% willing continued to average with COVID half into particularly a on days, pattern compelling offer we're the us free for business, areas, that on probably and office of and as XX% have higher to services we've in. the return because around we strict in the portfolio, people remember, is is back sort XX% of part manufacturing obviously different XX% seeing the then participation that sector more countries XX% seeing world, seen individual need that see in talked around great to our participating we've of rates, and the Slow as urban that programs as split different spend, and have the going of quite and attraction them B&I, offers

all of CEOs that we'd the we about moved do as, see once mood training in our months a we So, spring, basis of culture, to a sector, I bit want more presence we be get winter concerned only. colleagues there's to as that beyond today. and talked would keenness a think degree a and get the all has we definitely normalization we our few think, I to, on maybe are expect But I’m the there a hybrid I clients, wellbeing. now our through believe productivity, work again, to can our to clear, from, more to and to, that we than is our And trickier of virtually work cautious the sort

like B&I get highly still first So, these these we've sectors, we in of described. once could say Leisure both what winter time whilst well, we through months. are all I'm about as seeing Sports pressures & I because And opportunities and optimistic look should outsource that

momentum think positive. I is So,

XX% You've net volumes as our new about, that as is well opportunity, sort as we rates. back I’ll come seen the what And talk XXXX net the which of Palmer to optimism. of today new win for us still business potentially gives ask

new things really to for the looking of hits quite business When Dominic this of exciting the business in of billion the new the most in the the one and then the the I business excited part market opportunity that I we to the continue. We the to talked other base comes the about one But growth look it now, £X mean, ahead. about you trajectory when we're things I question is recovery that's business. opportunity. think net of at on quite feeling an record from year, that the But that new first-time business £X.X annualized think the ripe dynamics billion came that new a down you when wins, opportunity. mobilized we outsourcing. has wins of it the ongoing think, business drill us bit, really rate the think XX% that to those in excited. speaks retention of are for basis, all established, that's I

you and that catalyst our the challenges, they for operators make complexities temporary, are And things outsourcing. a a think that be well. daily catalyst like even be you coming chain basis, can difficult items about online, when may those you'd other things things supply on at shortages, So, that disruption, quite think for there are macro-economic challenging things are that inflation, those as labor are look if the

sentiment, at quite heightened really those and things feel about changing when increased So, feeling of us forward. and about are comes regulation, things you have digital play the when we technology, kinds to to our consumer going favor that it how look comfortable expectations,

year. that to quite probability America a in hundred million about billion had you total UK than and basis. three think That's excess a pipeline weighted of contracts piece is at to strongest when on on is is pipelines strong two the moment, at in a North the about reported. greater total America, North XX%, what the Europe. look be We've have in won the five We've weighted a XXX we Europe the about pipeline yet and ever I it have great million, a and five start billion basis. billion

a at and the ahead. when this quite about reasonable momentum quite where to I it's So, look good where last you too expect lands to marketplace, early been the business it's think what lies year, and wins new with has I the this it feeling combined in year the think opportunity historically. will we've Exactly number, But north a terms bit think, it in of I that normalized of be tell.

Thanks very much.

Thank you. Okay.

question go comes Jamie the from from of Stanley. Rollo Morgan line Our Please ahead.

Good morning. please. questions. my Thanks for Three, taking

new I net annualized, gains seeing I doesn't it's you're call on It at HX? the answered sort a there. there first £X.X your XXX higher. HX, of tendering maybe probably into the in you much think £X.X discipline the just still pace too process. a competitors comments Is turn main the were whether about just now. may May business amongst reading basis commentary slowdown I'm but also, any sort few in wins. points it, sound think keen on and XXX billion but have of for XX% talking of like versus send, the of signings And on you is of which And billion fast

us slow Secondly, little HX in if how great mobilization, is sorts you you. than second will would, it'd versus the stop of how instigating Thank stair cost on share HX? finally give this the returns, buyback margins those will could be on And And cadence stronger to a it buckets? much of much HX it please you be of down cash inflation to anything a year? then course, year,

to handle think those three I Palmer. going I'm to of all over

it. little reading Jamie. Sure. much Jamie into Thanks a on are probably you I too your think, one, first

all. new to referred the when at the sales think as at at couple lumpy of it year, I beginning at deals. peace opposed be in times. well, I you Had look aspect, ask the they closed wouldn't a the just you to can question of

think, I speak doesn't you're seeing any in to marketplace. So, trend overall it the

the happening In the supply are operational bit year, labor look at of the of the like a challenges of you sort margins little that talked basis. terms in we the an When it disruption, to about on shortage cadence chain, we're for deal then a long things be not I how be sure inflation, for to with prepared that be we've a those got going they they're are think around while. while. might And around to things

couple do the think the track will got the is on there the occurring, the specifically. to the thing of business business the just One an But I we've and of that impact coupled model reopening are record mobilization good are a new think that mobilizations is, that. is margin, with I the things base wins. have the business heightened

trajectory absorbed they margin online contracts as the life over contracts of we that of the As the the come margins, occur. at dilutive costs cycle mobilization increases

So waiting having a that heightened happening. yet with that's normalized not because that's has the activity yet

The is lag there the other of thing is simply pricing.

through of where things, saw and the of side model moment. it's or the but pricing, year, the a pickup digest we've lots at So, business inflation, on we've shown to the going of deal it, a got pricing in second activity we're pricing ability half We lag. whether in mitigation last to pricing with the has

will something And that continue.

X% really combination half, toward will be our historical think expect first we the our recognize margin expect quarter, flattish in of we second levels accelerate with the of thereafter. the to of that I to the by rate the the to most to the half end shareholders to respect points QX. first framework progressing heightened And capital year, the will returns exit likely before. allocation then you two and from onward With around to

that. ordinary first I the billion of and the little think last we to commuting step is think anticipate We we pre-COVID, shareholders. fully returned that of years over over £X the the again, reinstatement XX dividend a

of I year. just points last new. mobilized you annualized add just detail that, benefit I’ll the two of net on it's of point slightly talked high mean, a sort that net above new of about, we Jamie the

new So, with range to ARO is that what, two business one I is record points. the think, probably

you much. very Thank

Thank you.

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

morning, everybody. Yes, good

should what please. margin in EBIT sort then you of forward, need you of imply an level are you're of overall Some inflation of terms you cost, outlook, absolute the together on And does sort guiding offset? cost the on potential that When increase sort cost – we mentioned through easing labor know seeing, Thank on your to food I North we related continues how the of And But questions margin. drop cost blend as and of roll one kind that as about cost guess America weeks. piece in of Is you've revenue is the labor sort think it recent of in you. of final on ramp to up? rebuild in labor inflation, I that also sort pressures competitors something the too? it's seen

you, Thank James.

I'll, I think again, questions to over hand Palmer. those

one make. to Just comment

our in and we've cost reflected drop course, have by guidance the through given view on today our the volume that Of inflation, pricing, we of recovery. obviously

taken more of Palmer. little into bit all been factors So, those account. have color A from

Yes.

margin one, think I and one comes to are it your and inflation third first similar your very pressures. when

the a we’re X experiencing. bit disruption external Usually, to that's We chain a think mitigating things X.X We’re terms food point that. labor that. of the food around in on is side we're market point currently inflation the playing in seeing is X%, than with supply around a higher inflation better role X%, of what about

So, for the Historically instance around about have products, terms levels, substitution of are XX% in never X%. our they at been running moment.

mitigation the a labor what do the an Perhaps. impact of So has certainly side our and easing on on front. able to we're of bit seeing we things? to savings that Are inflation

pandemic, XXX,XXX and XX,XXX it's open we're a since kinds at doing America, positions. the mean, hired got trough got in lot America. open the try to employees of positions fill of we've globally early. all positions things we've about in think North still to moment those bit I a the XXX,XXX North We've I about of

what probably The shape think business So, to I just will certainly through think, the online of margin than base the to a period, it is certainly and And of drop progression it's terms on subside a the depends through, higher the that recovery. early exactly, coming back in mobilizing. business really have drop over bit new will We tell. remains be But time. seen. the time

heard beyond that for both So, us not think, about see continue this will but I you've a this as year only the opportunities on and bit well. fronts, significant we year, talk

really progression. regardless that return, margin on why And to margin half going those be see That's you one so, mix it's the volumes the depend the other reasons as think will progress will of weighted. we second

Okay. Very you. Thank good.

Thanks, James.

very you much. Thank

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

Yes, good morning.

about future. And that's coming sort are been the for really see called out trying the future? B&I structural more leaves in fade then region headwind you good X% on back historically, Europe, an just more about from slightly Just challenging the Can incremental get help sort sort a And of the or you sort about you into higher could encouraging in? with in generally this us a you of segments B&I group also to firstly, roughly rate. really a sustainable this just to despite potential is for bit that? outsourcing time falling why office And you think X% Europe. winds where you'd incentive, of you. for of Is companies versus higher mentioned how expecting it's few that participation specific the coming from similar is? you regions, mentioned the of pre-recorded returns rates because some it's growth understand secondly, that's first new level are in on it that of or of portion that thinking And that but just B&I CapEx or call from it the really to Obviously, the just do finally business, that from sort on people factors, coming of

reasons and you you, why for of more are you Europe of suppose, the been Thanks. challenge turning can a if I sort in the remind that's now? think you're Just us what do corner

Thank of first and the for then ratio of all, go it’s give guess, off returns you and the which, line then Excel numbers, of could as second, business been, lower, absolute you, a that's and is on I'll Yes. and I’ll one said in be I new broadly think, in a CapEx our same we've of a Vicki. have Maybe Palmer on fresh business. first today top perspective, to terms Look, the new yes, course, suppress Europe, high the helpful. ask we I and

of quite we CapEx year record come to that financial positive, we some into expect business. So, the this new it's as open

broadly I slightly think quality has and years requirements lower is in driving the of efficiency more a time the mixing early being a first-generation contract. first and more CapEx about

So, the as And be outsourcing is healthcare weighting also particularly and the us. opportunity well that think I is and towards perhaps living first-time for senior helpful. positive space would

we I to micro invest think that clients our the around upfront. opportunities which can pointing through on our the but returns out way the do digital it's probably through CapEx investment the that unattended a a in deploying of an how life the that finally to attractive and different life get of contract, clients of is contract, deployment, one markets, is through worth become will interesting through is than type rather

higher is levels. returns share to always market. X.X% it's CapEx growth. higher on moment, heard And it. level, use of would around the move I be us at levels we'll one tools. fund would of and the It growth you an to rate from think We today and see exciting is buy ability have we exciting I that is the can We those should our CapEx believe sustainable really us that So, important growth with think what's even stick the for

a think, to On be But taken some those number maybe that keen the programs will we're look, are some will of what there are a that is short-term of be inevitably our wellbeing programs. standpoint. free food hearing time, over recovery, B&I and I particularly yes, measures from also clients sustain

And talking volumes I going will mean? be that do does are come back be will help higher a we broad that until is change as in there expect while. Vis-à-vis think, it'll to. for stand the X% net-net, the the spend we there. there to participation change for I higher the within compensate But sector. on So, a clients Again, to mean, X%, is now. which What a I by I behavior, us positive think them think, that I there perhaps and for certainly

struggling B&I, tell. bit I will there of only fraction think risk Ed I we want particularly but when we think Maybe I opportunity, we offers themselves of Plamer, on feel to don't do talk little others on sustainability higher to side. and the that loads a differentiation think can't that bring think a different. the about more around. And our is that think are significantly and they it's But I here clients do and time digital build to add? ability you to

and think, in when it's comes Yes, into think the it seen movement forward. momentum year of the can things one positive to the sort that this I we've Europe, carry about excited we the the, of I we're quite what going think,

biggest the of is seen probably I've expansion think Europe growth I in the an mentality. thing

try what working really team win the rest ops, in that's but it's that Europe. something I see see think of we parts business the mentality. tandem to that has And It's globally, it's about that's think of existed talking all together you're of America, departments, in of the there sales, And consistent most take new is growth business, our overall. growth mentality to been organization. the working throughout sales in isolation the entirety notably it's opportunities a I'm And shape I the business. the everyone to in just not with starting it's one not North in

start exists, going that forward. the see momentum you once think to I really

it the to of to we to in You starting in want to mentality roles, utilize. people type that Europe. comes have we the take when bit that different We're see that shape certain starting of are types a want training

the take to results starting are already. You in root that some of see

in fiscal business was had it's times new it seen what net Europe, XXXX. in You've we've where X.X

talk to me There's the forward. that now. You've that that impressive reason pipeline exists about think every can continue right going heard

Europe. So, positive we're on quite

Great. Thanks very much.

you. Thank

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

questions. Thanks Good taking my Hi. morning. for

three if may. one; I First

anything one, this any throughout It specific course. give been you'd time. on is Could just I you've QX. this it for the guidance just like to a specific QX more into First keep you're excited question, And level? I was high services. guess, little done it in about haven't commentary like you've around more you on margins fives – them always Obviously, bit those Second be quite or in, looks the the bit whether down support next you're positive little but pandemic, given normally a seems DOR getting wondered from given education. healthcare,

opportunity. So that maybe just about can you talk

that margin think seeing You're that then contracts XXXX I are two Slide Palmer, won contracts you revenue. those your fact support look already, some FY XX, XXXX And over in What size. no are looks kind $XXX If do in education. it you in won in that look million and higher do services like at of XXXX – to like? said opportunities I you've

to So, these Are maybe new are – kind slide can see getting these bigger? or either some or away, beginning contracts misreading talk of your am winds commentary? you I bigger that are you to,

I'll services. then on one and back the three, I'll ask Palmer questions to support answer come and

Yes.

profile quarterly margin margin the from are Richard I the away progression. think on trying get to we

what where that's are traditional And the I towards can a we seeing. more view. point it think think in at but was you're think business; this I the look appropriate over we pandemic, I

in with and much You've expect we half that think will heard probably here me we would the second and of but waited. exit progression the QX. flattish be first much that expect QX say the be more earlier half to lower, first necessarily Don't half wouldn't on call margin that rate

underlying of won when dollars we into terms to with. it are I the thing of not I new last that. year. at things start indicators. at probably too and those £XXX of trends read to bigger think be much would of that's business and better look lumpy, its the million, lumpy look strength over says can biggest it wins the longer-term But the – profile, the is is that, pipeline, the over sales I Again, In sort contracts the time than the that right you two think not growth anything

the support got think are services; where And we've in services. it's Richard differentiation toward on I we then point support a always minded embedded that where we've of and said model,

the at presentation for today, accretive heard for and doesn't of now high-single-digit pandemic us pandemic Healthcare the we've about favor growth healthcare and DOR. I support been has the through always talked particularly You in in the throughout talked margins DOR, and a business differentiation good these pricing the path point hygiene challenges service the the importance in and always mobilizing environment labor about that actually In into that change. And it's of about us. been that's locations. with

of within that is we – acquired very hygiene throughout acquired the in We've ago, business we that got think Education period U.S. time. decade we're now importance a attractively I very, space. the grown which services seeing what's has in a of terrific happening

moment to other we have maybe to mind sectors, At a model that we opportunity and where So, game and wouldn't the we critical the in out. it's great believe cross we integral to the it right. the see

we we we should So, we create, focused that think at absolutely growth and that can are very then of to in where if margin, it pursue. right the have point then be differentiation

Very clear. Thanks very much.

Thank you.

Kean comes from question Marden from of next Please Jefferies. line ahead. go Our

on pipeline morning, statistics big earlier can provided the you with Palmer. I I've some of got three, Good that start all. if

to guess of about assumed of I distorted XX%, and XX% by we the if the XX% some but suggest un-weighted rate versus that, wins. is sort that one the weighted the would UK sort So recent the and U.S. the compare of TCV therefore numbers, U.S. of about in a win within

next bad book you the order year. But back ones; provisions made the couple percentage moved your you drifting unless So, increased not debt win have you the rate the of place win a bid up? and then little if play think in that see EU over territory a guess higher your maybe sort of the the the of in generally of interrogation. following? referenced rate should sort in what one that. sort companies bit that year? competitive all thirdly that in of I can of there's – particularly more quarter guess quick field about of I of way and in we P&L of collection year space those that sort a best-in-class, last particular I And more pipeline of the or yet. may two? initiatives into and economic provisions the their And in line the with you fiscal on to be How And any have data narrow I lots to just lot this common, them benefits fronts some any year? put does then we does you. big which treated secondly have UK think the other this Have seen that broadly out sort initiatives, happens deliver Thank be final

hand last take Palmer. to Yes. Kean. one and I'll the two other the then Thanks,

as dynamic is capita point on to, per becomes pricing, it Leisure can accounts about weighted with to regard create them. effectively was opportunity. established the to on our on opportunity The drive business We benefit really our We mine unique focus sector do client Just the therefore what benefit to talked which of we before promotions in a EXX and within to particularly partner to Sports and & data. the data to a clients U.S., spend.

And the where of in to – investment are that world Palmer. do and in and we the parts have two opportunity. we're is on digital that the then the along We to one our with clients a UK the other opportunities, first focusing right right looking significant where

Yes.

at improving the I rate seeing is question; in think I we good Europe think both things the bit the look way to rate best in But is have been in one we than win North rest world. that UK, and historically a the America the elsewhere. have of win we're better of

bit the a self-help a place, the that it's mentality taking that's the think bit training more of happening hiring I of So, there. lot people growth of right good good a that's

because say maybe this enough. that see win I'll flip rate. win way on that not that in rate side, a improvements the implies don't some after high, too seeing are I we going we're want So, that to

play your the a of the So, there's there, improvements the an mentality I doing time. overall question quality yes, we the visions – I we at UK to beginning and pandemic the what in Europe. quality establish to on, on is for this getting you're bad right the provision. of were think some we're piece. that thought a of bad provision, overall balance did but of Kean do which really The in certainly profits and the appropriate seeing sort there's debt And think the debt

We have seen downside not sort really on that take side. that the client's place of

there this on movements some as side – some have did but over other year, the things past well. that So were were there some

look So, an an at year. when you entire wash profits overall perspective, the almost of it's quality for exact

I the of of, So, at can you business. really our reflective is, trading think underlying of margin the look do operating is

Cheers. helpful. That's really

you. Thank

Gordon Stuart from comes question from next ahead. Berenberg. Please Our go

Couple linked. things; morning. of Good kind that are of Yes.

I a the of opportunities. into that, of you spoken happening? sort is think the mix the from I of to a flight you wins flight saw back could saw historically you this players this quality, off And bit and also lot that quite think of because year you've gross this of go that M&A quality and still of detail about smaller in particularly

XXXX. there How's significant landscape for Now, nothing now? that looking was just during Thanks. the

flight is it on Yes. Well, the M&A. to still I'll pick trust trust, on take absolutely Palmer point flight the and on to Yes, first happening.

clients think labor. the that in challenges operational are complexities more see the hygiene, it's facing It's difficulty its' the probably in who the It's believe I self-operated the variability of volume, struggle shift. it's which we've with them at that that driver all moment, about, those simply sourcing whether about in the outsourcing. we is first-time we talked

within the on from grown, broadly If mix going share at XX% remain about think a you to with wins opportunity. from first has time is others first seeing in I our number this with that, factors are outsourcing time and which we including line outsourcing that our think look XX% our the And some gains that I still described, unlocking really levels. but historic I of

M&A, the On Palmer?

Yes.

very with something we're still it respect at keenly. looking M&A, that to I is think

years. as things a number I looked deals. two the the have years and wherewithal two bit of we We've inclination do the of back to at it right pre-COVID, we It's just on M&A we've We certainly If done to passed those you in on. matter look of a well. £X a finding mean, that spent M&A, good we about do have smaller the some billion to deals.

it's things strategy. at see we a the of looking do part that something our of but at number as overall moment, are We

like selective and will us seen you've be historically We from just disciplined,

Very much. Thank you.

you. Thank

BNP Jaafar from question comes Please go Mestari ahead. next from Our Paribas.

okay. morning, Good everyone. Hi. three if questions got that's I've

example, And campuses? just are of ever around XXXX University, for about [indiscernible] pre-COVID Firstly, you've road talking QX at/or been to going XXXX after the you in just of revenue. won I in about much signing, say that going for it you've on be it of this I'm of has sort would thinking you the to part are side, margin the the much in by the Just side, of us XXXX, be example, would your together since North Some roll be revenue if big X.X on comments Vrije be you move; XX with already the just X%. relate opened university XXX% And around how things? to the towards that, some left new Is has first X.X, as wins signed lastly, And would seem contract could piece business starting America? how that self-operated you roughly the they been or truly out? rates exit give some on based billion color Top very it to XXXX would stuffs new those on sector? seeing

the have need pre-COVID still business or X%? now structural revenue to you picture levels a margins You XXX% there X% you improvements cost below in pretty is that to think been that much could get to deliver allow with

you, Jaafar. Yes. Thank

a wins the business been couple space, Leisure would've of couple broadly new sort a third senior Top on Sports living within education and of B&I. those a & Just and XX in and in the healthcare

of great So, sector there. I across a its done most broad positively the we've and well us Healthcare based think for is sectors. particularly all

reference given volume don't do the goes and big and know it was outsourcing. to want I possibly continue outcome to We to just points. that margin the us necessary, story to build we to it again. business were we first-time we've that. of this – delighted thought the think that best had could accounts the I'll want And QX back it Look, reference wins margin seeing broadly, the in a faster I think we sites business accelerate So, I to previously. get That's this with can if we to the take think we we're be.

today, whilst volume, Palmer is XX% As that heard like-for-like. you've of XX% say at

with a new there's So, of lot pricing, margin attributes. different and which comes

we reopening absolutely in whom think are pandemic. a that the now, goodwill We the pre-COVID Right it's in which I pleased period has with again with right? a we incredible with margin do comes deploy to with of how beyond the to cost client incredible flawlessly following all learned we're and So, the we've been, X%. see to progress outstanding So, lot, really to get efficiencies. year. additional ability throughout that about we our those back significant the the reward And want and mobilization,

critical. this can up know can we that. that over we beyond I we and let think any it's of grow our We don't phase absolutely through the time clients margins down –

excited it's super margin balance. We and opportunity So, growth exploit this a to thereafter. really then be would

comes it new so the captured – fiscal when the think has signings mobilization and or in XXXX. business and been mobilized was I roughly to XX%

beyond. be though and I role within XXXX have out its do perhaps think population. in you've seen worth that be not you XXXX. mobilization fiscal full it's mobilization So in – pointing that The to worth ITT even would may would remainder a a seen little

I think is a important that So, factor. very

You're fiscal the with wins. XXXX new certainly out some business seeing that of play fiscal XXXX

I over think XXXX, continue fiscal to that will that's the time. in so occur case

the years, won't over But is at return certainly. will look that it the you It when a to this XXXX, be factor all year. So, it into will into base number math. extend volume something of

been four has Thanks. zero XX% And moralized. you say

correct. That's correct. That's

Thanks. much. very you Thank

comes you. Instructions] question Thomas Thank Our from [Operator HSBC. next from go ahead. Joe Please

questions, Good please. morning. Couple of

talking by on what Is food finally, on that, wondering though measures sorry, technology the ESG moved the sounds to brings of moment. may free long-term? that might whether extends sort to the of the the aside that I values benefit just being some being involving Have And recovery temporary were the of anything in with transaction is at Also, about measures. what further it now offices et now? status that terms I product given in you renegotiations, previously were the respect out from higher, then been wonder, that out. decarbonization, there you point just and the Firstly, it driven just cetera, things I'm implications back that's margin contract well being of you that's temporary of as they had – off sourcing, sort those in if be all what and practically that's

Joe. Thanks,

– free read about values. the I this should it is we we points don't taking into food. should on transaction think Just that

about a number of I think it's factors.

spending I more. are think consumers

and the colleagues enjoy sector. creates think to fact I a we the with sensitivity the in or whether friends, the I that price Leisure or are think it's mood office less cashless Sports there's moment &

a to think I there's uplifting that number positives of the driving values. So, transaction

of I this through Just on number decarbonization, address ESG and we mean, a measures.

different are Of what choices also is menu suppliers doing at looking consolidating achieve course, we we net we choices. are their to our of consumers how of that's A own seeking who target, and commitment beneficial. highly nudge the so are to zero lot

potentially clients know means to for But very if of to alternative means our in help little show of also and point less that on. that of term. sort mean There that animal an we a address really may think where of that agriculture less of their sourcing. and companies those we and the that and pricing. in clients at regenerative the chains can for opposed lot premiumization visible And cost longer clients element we work work it with with. values, protein right with as there supply before a is offer can a an something bit values We is our really short-term requirement of for it's that some being we that there's want the costly opportunity more colleagues We at a as Some our – in this colleagues. look think be critical

we're when So, tremendous has we in menus carbon low with [indiscernible] through we're the look, not ratings, deploying UK. in and that but an just it sure the working all example, as short-term, actually sites it I'm XXX have the already margin the implications at carbon

So, of for point a scaling a real interest customers. up at it's our some lot is of and it pace,

a and that fully And seeing that simple time, the then the with clients don't time, That's as – of beginning We shifting negotiations, that this place expect contract of yet expect work; be is ongoing will conversation function most at a these the like, to the to to over variables. that a took year. number place are rather so of way an but point the it's about another of in ongoing offers forth about take at over it the what their you're And want but of continue think to respect and dialogue. dialogue population the about course have we that of COVID they take and levels. of the are back the, what, place these of number

any So, but that it's will not timeframe on like conversations. be these when ongoing are definitive complete, we have

you. Thank

next Our from Please comes question Neil go from Redburn. Tyler ahead.

questions please. Good follow-up morning. me, from Two

first Firstly, back growing, the are the the or the moment. opposed And up and you picking viewing but that where or one the your food down have comments meaningful explain you the or it at free that risen, you proportion just to represents as – are that whether the not risen of there the that that the activity of That's case, to me you the you.\ I'm other opportunities have question. in that and multiples consumer? reflected a prices there. slowing revenues is whether billing customer, where margin way on implication Is level offering going you're the on And the opportunities M&A, earlier there, B&I around of meaningful perhaps made yet be is that's of around the the proportion the would there? Can pipeline. any pipeline exist, excuse point Thank essentially the the

Neil. Thanks, Yes.

the free of Just our programs. free food is clients mean, within points. on the food example sectors give around XX% B&I I one our offering would I of

just of So dimensionalize that sort would our it’s be to XX% of UK business.

for interesting costly on our us all on encouraging it not in Obviously, that employees, them of a this different are we it's way It's expectations development our with it's to that punitively our of different are on that behaviors And is site So, building for sectors, fair great to a then significant M&A. ensure the in an both but getting really them. and that with promises is fair that, margin it's which sub-sector. think work sides. position broadly important And B&I. take step, we in clients we with line

Just would pre-COVID. more there. called food of the that to already same be going impact, contracts type clients the free Those a those reimbursable structures are margin on little are type on contract really mostly be of

significant. aren't on really margin they Ultimately, it's what the want on that spend. making implications client the So, decision to

are we valuations we respect think dollars. are that that that With mentality we M&A P&L saw treat I with consistent that the we operate our is key for pre-COVID. the what need so clients’ us some with to the really dollars, like to seeing

of changed though expectation of I lot of has. ultimate think trading hasn't the value sort really even the that in minds mental a current owner's business a bit there's

conversations we into where that risk to it And to underwriting of to the the about lies. really deals, comes how structure get recovery down so, and when

deals aren't seeing on of just certain necessarily places more. So, that value tell work to I'll But kept to value. changes deal; willing really the where that's certain any we for not take bit a the we're right us matter we a us. from the little it's that share that doing want in you in it's places, really significant

Very you. Thank it. clear. Got

much. you Thank very

go Tim line of comes Barrett final Our from question the of Numis. ahead. Please

might bit new talk the secondly, dividend much split and Thanks the good it's about bit Can about a said, a two-third I talk and you that as then – just you to left, everyone. be really And retention rate level. with a much. had constituents non-retained is payout One, to understand go haven't policy, two as wanted morning, business things the we please. intention before? any Good and Ho. XX% different one-third, post-COVID? And the you very dividend to I had

retention answer then that we pleased on think it's I is improve. rate, really continued the dividend So, to Tim, on yes. And the

we nudge very We opportunity and a on high to lock would sought a longer. level, are of that continue an we've to pandemic can. we so. a the We've continued as always of we to few contracts up for give bigger us do Hopefully benefit out to wherever so contracts We term already use it look will hope forward. to the sort as bit

to what that In we've well it's really crossroads we're have terms not for of the held And don't I’m rate. just as very free think recognize. retention improvement onto, regions, important with reasons us I the pleased that's pleased changed. really

or Is terms of there out retrenching? going business anything out call customers of in to

typically base resilient with think Do think of and our the been has been one blue withstand for through No. we I strong know, B&I of been chips positive client I mean, it's how I you the to this. able surprises trade they've pandemic? us clearly,

as feature a were. been hasn't that it So

you Did think you...

Thank much. you very

interesting is wide up it the losses. within an what retention we call anomaly I do think there any pick rate, does

our So other that bit a is of businesses. going we be then this seen And being that have acquired out or of would business business by happening.

is we it would run kind their net would of the It thing life been good that to with businesses scale their site thing. remote – in have that the natural also when winners we've that think I pick-up our clientele, life. comes

those be would wide losses picked on the up all in rate well. – retention as So, of the

you. Thank

Thanks, Tim.

you to hosts. your will Okay. And I back over hand

thank So, you.

look for you for we'll us February. joining you thank in all forward and Just questions today to to thanks and speaking