Compass Group PLC · LSE:CPG
Compass — Investor Presentation (September 2018)
9 slides from Compass's investor presentation, Sep 13, 2018
Slide 1: Adoption of IFRS 15: Revenue from contracts with customers
Adoption of IFRS 15: Revenue from contracts with customers Laura Carr Group Financial Controller 13 September 2018
Slide 2: Disclaimer
Disclaimer Certain information included in the following presentation is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters
Slide 3: How we generate revenue
How we generate revenue Examples Compass generates revenue by providing food, cleaning and other soft support services Compass raises a monthly invoice to a client: Eg. Number of meals served X price per meal (fixed price contract) Revenues from CLIENTS: Or Costs incurred plus management fee (mgt fe
Slide 4: Client investments
Client investments Compass makes investments in clients where returns are attractive: Compass purchases equipment used to fulfil our obligations under the client contract e.g. ovens, catering equipment Compass pays the client an investment for exclusive access to consumers e.g at a sports stadium Co
Slide 5: IFRS 15: Revenue from contracts with customers
IFRS 15: Revenue from contracts with customers • New standard to be adopted for FY19 (year ending 30 September 2019) • No significant impact expected to timing and recognition of revenue • Minor revenue reduction (circa 0.5%), minor increase in profit, modest absolute margin increase • Comparatives
Slide 6: Income Statement
Income Statement Expected Measure Accounting change changes** Certain amounts previously treated as an expense will Revenue* c.0.5% now be deducted from revenue Operating* Timing difference between capitalisation and c. 0.3% profit amortisation of salesforce commissions Due to revenue reduction and
Slide 7: Balance sheet
Balance sheet Expected Measure Accounting change Changes* A reclassification, mainly of investments in assets used by Compass to Contract assets - c. £0.8bn deliver its contractual obligations reclassified from intangible assets to reclassification contract fulfilment assets Contract assets - Salesf
Slide 8: Timeline
Timeline Event Date Description IFRS 15 overview 13 September 2018 High level introduction of expected IFRS 15 impact Results to include quantification of expected IFRS 15 Full Year Results FY18 20 November 2018 impact on FY18 HY19 results reported on IFRS 15 basis Interim Results FY19 15 May 2019 H
Slide 9: (4 COMPASS
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