Shares in catering giant Compass Group have slumped by a fifth this morning to be the FTSE 100’s biggest faller so far today.
That’s unsurprising after it warned that the coronavirus would cost hit up to £225m, as we reported earlier.
Its shares have lost 20.87% – or 234.10p – to fall to 887.40p.
That’s its lowest level in seven years.
Greg Johnson, analyst at Shore Capital, said: “Assuming these trends continue through the third quarter, revenues could be impacted by around £2bn and operating profit by a further £550m. We have to believe that the impact on its sports and leisure operations, along with education are temporary… meaning we would expect a significant recovery as and when containment measures are wound down. Longer term, a recessionary impact may be felt across its operations, while changes in working practices may adjust, further depressing growth, although the opportunities for new contact wins are likely to increase from the likely fallout.”
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