Compass Group, the world’s largest caterer with revenues of £25 billion, said this morning that 55% of its business is currently closed due to country lockdowns, with some of its divisions shut entirely.
Only its Healthcare division and Defence, Offshore and Remote division remain 100% operational, but these collectively account for just 30% of its business.
Its Business & Industry division and Education division are both 75% closed, while its Sports & Leisure is completely shut.
The company said it is working hard to protect its cash flow as well as proactively mitigating its cost base by around £450m per month.
It is taking a wide range of actions such as limited use of variable forms of in-unit labour, including overtime, contractors, and temporary workers, and the furloughing of permanent staff or redeployment to sites where critical work is still required.
Chief executive Dominic Blakemore has temporarily reduced his salary by 30%, whilst the group board and executive committee have temporarily reduced their fees and salaries by 25%.
Compass said the drop through impact of lost revenues on HY operating profit was between 28% and 29%, within the anticipated range of 25% and 30%.
Mergers and acquisition activity has been paused and it has also scrapped plans to recommend an interim or final dividend for the current financial year.
Mr 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.”