LONDON (ShareCast) - (Sharecast News) - Catering group Compass pulled its dividend on Thursday due to the coronavirus pandemic as it said trading has been in line with its expectations and that its chief executive will take a temporary 30% pay cut.
Compass said that in the last two weeks of March, the business performed in line with the expectations set out in its coronavirus trading update in mid-March, with organic revenue growth for the half year of around 1.6%. This is within the 0%-2% expected range.

The company noted that around 55% of its business is closed due to country lockdowns, with the impact of containment measures varying "significantly" by sector. In its business and industry segment, which accounts for the biggest chunk of group revenue at 39%, around 75% of activity is closed. The sports and leisure business, which accounts for 13% of group revenue, is completely closed, while the healthcare division, which makes up 23% of revenues, is fully open.

Compass said it has decided not to recommend an interim or final dividend for the year ending 30 September 2020 as it looks to balance the importance of a dividend with "with the exceptional circumstances that the Covid-19 pandemic represents".

In addition, the chief executive has temporarily reduced his salary by 30%, while the Group Board and Executive Committee have temporarily cut their fees and salaries by 25%.

Chief executive Dominic Blakemore said: "We are managing the business to protect the interests of all our stakeholders. Compass is a strong, resilient organisation that is well-positioned to continue to support our colleagues, clients, consumers and the communities we serve during this challenging period."

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