NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
Compass Group Plc – ("Compass" or the "Group") notes the recent press speculation regarding a potential capital raise.
As detailed in our update on 23 April 2020, we have taken significant measures to strengthen our liquidity in light of the disruption brought about by COVID-19. At 31 March 2020 net debt was around £4.9bn, we had £2.0bn in committed Revolving Credit Facilities and net debt/ EBITDA was 1.7x. We have since suspended the dividend and have increased our liquidity by an additional £800m and now have total committed Revolving Credit Facilities of £2.8bn.
Since our previous announcement, we have successfully obtained waivers from our US Private Placement investors for our leverage covenant tests in September 2020 and March 2021. The interest cover test has been waived for September 2020 and there remains an interest cover test of more than or equal to 3x on a 6 months proforma basis for March 2021.
We continue to evaluate the merits of a range of options that would further increase our resilience through the current situation and enable us to continue to invest in the business to enhance our competitive advantages, support our long-term growth prospects and further consolidate our position as the industry leader in food services.
No decision has been made on whether to proceed with a capital raise or with regards to the timing or size of any such capital raise.
A further announcement will be made if and when appropriate.
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is being released on behalf of Compass Group PLC by Alison Yapp, Group General Counsel and Company Secretary.
Investors Sandra Moura, Simon Bielecki & Agatha Donnelly +44 (0) 1932 573000
Press Tim Danaher & Fiona Micallef-Eynaud, Brunswick +44 (0) 207 404 5959
Note to Editors: Compass Group PLC is the world's leading food service company, which generated annual revenues of £25.2 billion in the year to 30 September 2019. It operates in around 45 countries, employs and engages around 600,000 people and serves over 5.5 billion meals a year. The Group specialises in providing food and a range of support services across the core sectors of Business & Industry, Healthcare & Seniors, Education, Sports & Leisure and Defence, Offshore & Remote, with an established brand portfolio.
 2.0x on an IFRS 16 basis