|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||14.14 - 14.54|
|52 Week Range||11.12 - 26.87|
|Beta (5Y Monthly)||0.45|
|PE Ratio (TTM)||15.07|
|Forward Dividend & Yield||0.69 (4.90%)|
|Ex-Dividend Date||Jan 16, 2020|
|1y Target Est||N/A|
Fees earned by bankers in Europe's equity capital markets reached a two-year high of nearly $2 billion in the first half of 2020 as companies raced to raise funds in secondary transactions to ride out the coronavirus crisis. While initial public offerings (IPOs) almost ground to a standstill, European equity capital market (ECM) activity rose to $81 billion, it highest first half level in three years. "In the early phase of the lockdown we have seen increased activity in recaps and related primary issuance across Europe, but mostly focused in the UK," Samuel Losada, head of EMEA Equity Capital Markets at Bank of America, said.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Novacare Solutions Partnership and other ratings that are associated with the same analytical unit. Key rating considerations are summarized below.
(Bloomberg Opinion) -- The public capital markets are having a moment. A handful of big initial public offerings in the U.S. and Europe have launched successfully in the last week. Billions of dollars of fresh equity have been raised over the last two months. In the U.K., companies have taken advantage of a liberalized regime for tapping investors. But asset managers don’t possess infinite cash and the corporate fundraisings have barely begun. At some point, there must be a reckoning.The IPOs of coffee-capsule maker JDE Peet’s BV, Warner Music Group Corp. and business-intelligence platform ZoomInfo Technologies Inc. are less encouraging than first appears.Much of the legwork on JDE Peet’s was done before the crisis hit. Its at-home beverage business possessed clear resilience to the impact of the pandemic. The deal rested on some supportive anchor investors and was priced at an alluring discount to Nespresso-owner Nestle SA. That is not to diminish the achievement of getting the listing done, but only a minority of firms will share such favorable characteristics.Likewise, Warner Music, which priced at the upper end of its marketing range, was in the works before the crisis. Digital music is evidently resilient to lockdowns. ZoomInfo’s near doubling on debut is so extreme it begs the questions of whether it was mispriced or whether the elevated price will stick.These successes unfortunately do not prove the IPO market is open to all comers.Now consider how already-listed companies are raising money to cut debt, especially now that equity markets are up a lot since their March nadir. Quick-fire placings like Compass Group Plc’s $2.5 billion share sale remain the preferred route over time-consuming rights offers. The implication is that companies can’t get, or don’t trust, investment banks to backstop rights offers that won’t close for a few months.Where rights offers are underway, the terms are onerous. That’s the case with Bang & Olufsen A/S, the Danish high-end hi-fi company whose chairman sadly passed away this week. It’s selling new stock at nearly 60% below the company’s implied share price, adjusted for the enlarged share count. That is a sizable discount given the shares had already dropped around 45% since January. Despite that, fees and expenses will absorb some 13% of the gross proceeds. Look also at SIG Plc’s recent fundraising. The building materials group is seeking 150 million pounds ($189 million) — equivalent to almost its entire market capitalization. It has lined up buyout firm Clayton, Dubilier & Rice LLC to provide up to 85 million pounds of the total, for a stake of roughly 25%. SIG clearly wanted to be 100% sure of getting most of the money. But certainty meant going beyond the usual stock-market investors.In the financial crisis, the banking sector had to be bailed out. Today, the impact of the pandemic goes beyond one industry. Thousands of companies will be looking to cut their leverage. The demands on asset managers to write checks in support of that transition will continue. With dividend income cut, investors could be under more pressure to sell existing holdings to fund these cash calls. If that assessment is right, the money will run out at some point. The equity market may look generous right now. Overstretched corporates shouldn’t take it for granted.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Feedr, the food tech startup that delivers personalised meals to office workers as an alternative to companies setting up their own canteens, has been acquired by Compass Group, the publicly-listed foodservice company. Compass Group says the purchase of Feedr will help accelerate its digital transformation, and -- amidst the coronavirus crisis -- form part of its "return to work" strategy. Specifically, it plans to utilise Feedr’s software across its portfolio of corporate clients in the U.K. and Ireland, with further potential applications of the technology in education and healthcare sectors.
(Bloomberg Opinion) -- Britain’s FTSE 100 index has experienced its first rapid-fire share sale that includes retail investors. If technology can allow Compass Group Plc to include small shareholders in a 2 billion-pound ($2.5 billion) fundraising — by selling to them via an app — other companies will feel the pressure to follow. The role of the investment banks as gatekeeper to the big equity deals is gradually being chiseled down.Compass is in the catering business, a corporate casualty of the Covid-19 crisis. Its underlying revenue dropped nearly 50% in April. The group is seeking to raise more than 10% of its current market value to cut its too-high debt. That would normally oblige it to do a time-consuming and expensive rights offer, making shares available to all of its existing shareholders to protect them from dilution.But the British rules were relaxed in April and companies like Compass can now sell shares to whomever they like, which has usually meant the institutional investors they know best. That has been controversial as existing small shareholders have been getting diluted with no chance of doing anything about it.Compass’s tiny retail offering in its new fundraising — capped by regulators at 7 million pounds — makes no difference to whether it will raise the 2 billion-pound target. But it respects the principle that small shareholders have the same rights as big ones.The deal nevertheless underscores the oddities of the current regime. First, the retail part of the sale isn’t for existing shareholders exclusively. In that sense, it just mirrors the main offering to institutional investors. It doesn’t prevent new shareholders from diluting existing ones, it just provides a new distribution channel.The small size of the offering limits the number of people who might get burned if the shares fall later. But either the offering is suitable for retail, in which case the cap is perhaps illogical, or it is not. Placings like these appear superficially advantageous for those involved. After all, the terms need to be attractive versus buying in the market otherwise there would be no point in anyone participating. And if retail investors can buy shares in the market, then it’s logical to let them buy shares in a placing.The danger is that hype builds around these deals and the shares, often sold cheaply, end up being seen as a one-way bet by naive investors. The reality is that the companies raising equity in a hurry right now are doing so mainly because they’d be in difficulty otherwise. The performance of the stock sold in these types of placings has been very variable. But the direction of travel is clear. Technology is wedging itself into the process of selling shares and allowing broader participation and a fairer distribution of dilutive stock. That will benefit smaller institutional shareholders and family offices as well as retail investors. For the big investment banks, their role will gradually become more about giving good advice ahead of these deals and less about shifting the shares.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
By John Jannarone From Peloton Interactive Inc. to Netflix, Inc., companies offering at-home technologies to keep people busy, healthy and entertained during the lockdown have thrived. The latest high-tech offering: a fully-automated indoor farm for greens and herbs, all housed within a sleek case the size of a bookshelf. Farmshelf, which currently sells a professional […]
Compass Group (LON:CPG) shareholders are no doubt pleased to see that the share price has bounced 31% in the last...
Compass Group PLC (LON:CPG) shareholders should be happy to see the share price up 26% in the last month. But in truth...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Compass Group PLC and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
Unfortunately for some shareholders, the Compass Group (LON:CPG) share price has dived 46% in the last thirty days...
European shares rose on Tuesday, following a sharp sell-off in the previous session triggered by panic over the hold that the coronavirus has over Europe and the resulting damage to business activity and company finances globally. The pan-European STOXX 600 index was up 2.7% at 0804 GMT after plunging to its lowest since November 2012 on Monday. The unchecked spread of the virus around the world has erased liquidity from financial markets and sent volatility to record highs.
Investors in Compass Group PLC (LON:CPG) had a good week, as its shares rose 2.3% to close at UK£18.69 following the...
Compass Group PLC (LON:CPG) shares fell 6.1% to UK£18.83 in the week since its latest full-year results. It was not a...
European stocks rose for the third straight session on Tuesday, lifted by hopes that the ongoing negotiations between United States and China would yield a trade truce. Swiss drugmaker Vifor Pharma was the top performer on the pan-European STOXX 600 after the company announced the success of avacopan as a treatment for a autoimmune disease in a trial. After a sluggish start, the STOXX 600 index gradually crept up 0.1% as major U.S. stock indexes notched record highs.
European shares were little changed on Tuesday after a strong start to the week, as investors sought concrete signs of any progress in trade talks between the United States and China. The pan-European STOXX 600 index was flat at 0803 GMT, after gaining more than 1% on Monday following a report that the two sides were close to a trade agreement. China's Commerce Ministry said on Tuesday that top trade negotiators from both countries had reached a consensus on "resolving relevant problems" on a phone call, but gave no indication on the timing of a deal.
Compass Group on Tuesday warned that hundreds of jobs could be in jeopardy as a part of a program to stem costs, as the weakening economic outlook in Europe dented the catering company's volumes and margins. Compass said deteriorating consumer and business confidence in Europe had hurt volumes and margins at its company catering services, sending shares almost 8% lower. The world's biggest catering firm could cut jobs in Britain, France and Germany, with roles in Japan and Brazil also at risk, Chief Executive Officer Dominic Blakemore told Reuters.
Today we'll look at Compass Group PLC (LON:CPG) and reflect on its potential as an investment. In particular, we'll...
In March 2019, Compass Group PLC (LON:CPG) released its earnings update. Generally, analysts seem fairly confident...
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...