Compass sells 195 million new shares to raise £2 billion in attempt to ward off debt during Covid-19
Compass Group, one of the world’s leading foodservice and catering companies, has raised £2 billion by selling nearly 200 million new shares at a discounted rate. Having closed around half of its business since the lockdown, and with sales in April down 46%, the move aims to reduce the company’s debt and provide resilience for the next 12 to 18 months. Group CEO Dominic Blakemore told Reuters that the potential loss of customers means Compass Group “may be a slightly smaller business, our job is to ensure that we’ve got a profitable smaller business.” Our share tracker confirms that all UK operating foodservice companies and casual dining chains are seeing around 50% loss in share price in 2020, with most retailers and some fast food chains recovering better than others from price lows in the second half of March.
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