By Tom Winnifrith & Steve Moore | Tuesday 19 May 2020
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
At the recent ShareProphets Shares Conference, PrimaryBid CEO Anand Sambasivan emphasised its expanding reach – this is shown today by a fundraising from FTSE 100 catering and other support services group Compass (CPG) including a “Retail Offer via PrimaryBid.com” Thus Anand's company is now officially in the big league and if you have not registered for free you should do so at once HERE
Compass has also updated on trading for its half-year ended 31st March 2020. They show 1.6% underlying organic revenue growth (“around 6%” to the end of February) to £12.6 billion, with following earnings per share around 12% down to 37.6p.
It detailed “operating profit margin improved by around 20bps for the five months to February (10bps excluding the impact of IFRS 16). For the six months to March operating profit margin decreased by 80bps (90bps excluding the impact of IFRS 16)… Organic revenue declined by 20.4% in March and 46.1% in April… The drop through impact of lost revenues on operating profit was 28.5% in March and 23% in April”.
It noted “in April, we have mitigated our cost base by around £500 million per month by taking a wide range of actions” and, with the launching of a £2 billion equity raise, is not to recommend an interim or final dividend for this year. The fundraising is aimed to “allow us to weather the crisis whilst continuing to invest in the business to enhance our competitive advantages”, with the company also stating “as we move towards reopening more units over the months ahead” and that it is “excited about the significant structural market opportunity globally”.
The shares last closed at 1153.5p and the issue price will be determined at the close of a bookbuilding process. To take part sign up now HERE
Even if you dodge this offer the fact that big companies as well as AIM stocks are now allowing small investors to take part in the Covid driven turnaround fundraisings is most welcome and everyone should ensure they can play by registering with PrimaryBid
Please note that if you do take part in an offering and have registered via ourselves we will earn a very small commission. Despite that we suggest folks avoid most offerings. This one looks tempting.
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