(Reuters) - UK-based Compass Group (L:CPG) expects to report a roughly one-fifth fall in organic revenues for 2020, the company said on Wednesday, saying it was taking a 100 million pound impairment charge on European and North American contracts.
The world's biggest caterer, which employs around 600,000 people and served billions of meals across 45 countries before the COVID-19 pandemic struck, said virus-led closures of businesses and schools reduced organic revenue by 19% in the year to Sept. 30.
"The pace at which our revenues and margins will recover remains unclear, especially given the possible increase in lockdown measures in the Northern Hemisphere through the winter months," the company said.
Shares in the company fell 5% at opening.
The company, however, added that performance across most of its markets have seen an improvement as schools and businesses start reopening.
The fall in organic revenues was 36% year on year in the fourth quarter compared to 44% in the third, the company said.
Compass has a vast spread of cafeterias and catering operations, serving office workers at Google (NASDAQ:GOOGL), Shell (LON:RDSa) and HSBC, as well as schools, old age homes, prisoners and the armed forces.
At the peak of coronavirus-induced lockdowns in May more than half its operations were closed, and the company has raised 2 billion pounds in new capital to reduce debt.
It said "resizing costs" will amount to about 130 million pounds in the year, and that the company expects liquidity at the end of September to be around 5 billion pounds.