Compass Group Finals

[idpickering]

Not a HYP buy currently I grant you, but it was discussed hereabouts recently, and some here hold it too.

Compass reports strong results with organic revenue growth of 5.5%, excellent cash generation, earnings and dividend growth of 12.5%

Organic revenue up 5.5%

· Excellent growth in North America with organic revenue up 7.8%

· In Europe organic revenue grew by 2.1% driven by strong net new business in the UK

· Rest of World was up by 2.9% due to good growth in Turkey and Spanish speaking Latin America

Operating margin of 7.4%, up slightly as expected

· Continued mix benefit of higher margins in North America

· Strong improvement in Rest of World offset the margin pressures in the UK

Strong EPS and dividend growth

· Constant currency EPS growth of 12.5% and dividend up 12.5%

https://www.investegate.co.uk/compass-g ... 00098270H/

Ex div 17 Jan 19, paid 25 Feb 19

[SuperCally]

Thanks Ian.
Final Divi 25.4p. An increase of 13.9% from last years final.

[idpickering]

Thanks Ian.
Final Divi 25.4p. An increase of 13.9% from last years final.

You're welcome. I mentioned in another thread that I don't hold this stock, but I can add that I've been tempted in the past, but never pulled the trigger.

Ian.

[Arborbridge]

Thanks Ian.
Final Divi 25.4p. An increase of 13.9% from last years final.

You're welcome. I mentioned in another thread that I don't hold this stock, but I can add that I've been tempted in the past, but never pulled the trigger.

Ian.

Compass is another stock I wish I had bought years ago, but during my time, the yield has never been acceptable AFAIK.
After the experience of WPP (and some others!) one wonders: if the yield comes within reach, would it presage a change in fortunes for the worst? All part of the high risk strategy - one needs to remain sanguine about the long term prospects of one's HYP overall.

Arb.

[tjh290633]

I got Compass by accident, having originally owned Forte, which was taken over by Granada, which I put into a single company PEP. Then Granada merged with Compass and then demerged, with Granada keeping the TV side and Compass having the hospitality part. Later amalgamated into my ISA, but the by then ITV never warranted building up and was eventually sold when the poor dividends ceased. On the other hand, CPG has done well to the extent that it keeps flirting with my low yield culling point, only to be reprieved by the next dividend increase.

It's one which I hesitate to cull, knowing that it continues to perform.

TJH

[tjh290633]

Just to add to that, at the time of the split in 2001, the share price was 482p and the yield from the next two dividends was 1.2%. When I transferred it into the PEP (not the ISA) in 2005, the share price was 227p and the yield from the next two dividends was 4.1%. I added three more lots at similar prices over the next 12 months to bring it up to weight. I have had to trim it back four times because of going overweight and there have been two share consolidations with special dividends. I now have less than 1/3rd of the highest number of shares held at the peak. IRR is 13.5% and the current yield at about £16 is about 2.4%.

Still worth hanging on to.

TJH

[Bouleversee]

I got Compass by accident, having originally owned Forte, which was taken over by Granada, which I put into a single company PEP. Then Granada merged with Compass and then demerged, with Granada keeping the TV side and Compass having the hospitality part. Later amalgamated into my ISA, but the by then ITV never warranted building up and was eventually sold when the poor dividends ceased. On the other hand, CPG has done well to the extent that it keeps flirting with my low yield culling point, only to be reprieved by the next dividend increase.

It's one which I hesitate to cull, knowing that it continues to perform.

TJH

I acquired mine the same way. as did my husband whose shares I inherited. I am very pleased with their performance and have never felt any need to trim. How many companies offer that much increase in dividend along with growth? (" Always keep a hold on nurse for fear of finding something worse.")

It would be interesting to know whether the shares you put the trimmings into did better or worse than Compass has done in the interval.

[tjh290633]

It would be interesting to know whether the shares you put the trimmings into did better or worse than Compass has done in the interval.

Regrettably worse, Lorna.

March 2008 HBOS
June 2008 Cattles
March 2009 IMI and Northern Foods
July 2014 Premier Farnell
February 2016 Aviva and IMI
June 2017 William Hill

Only IMI has done well out of that lot, with an IRR of 45% to date. I sold HBOS and put the proceeds into Cattles, foolishly. The rest were static or pedestrian.

TJH

[Bouleversee]

Thanks, Terry. You are amazing with your record keeping. I know one example isn't conclusive but that does rather suggest that my non-trimming approach isn't so daft after all. What I should have done is get rid of losers (and I am not talking about winners who have had a drop along with most other shares rather than something peculiar to them) before they got even worse instead of topping up some of them, so my approach is only half right.

[Deev8]

I first bought Compass in Oct 2005 at 191p, and bought again in Mar 2006 at 218p.
I trimmed back for the third time in August this year at 1678p. Previously I trimmed in Feb 2010 at 501p and Apr 2016 at 1264p.
Since I first bought them Compass has given an IRR of 23% pa.

Note: the prices quoted have NOT been adjusted for the 16 for 17 share consolidation in mid-2014.

Dave