StockMarketWire.com - Food services company Compass launched a £2bn equity fundraise to boost its liquidity and pulled its guidance after it reported lower half-yearly profit.

The company said it was withdrawing its previous growth and margin outlook for 2020, citing uncertainties associated with the duration of the Covid-19 pandemic, and the pace at which containment measures would be relaxed in different countries.

For the first half, pre-tax profit fell to £771m from £852m on-year, while revenue inched 1.2% higher to £12,476m.

Organic revenue grew by around 6% for the five months to February and declined by 20.4% in March. In April revenue declined by 46.1%.

In a separate statement, the company said it would allow retail investors to participate in its £2bn placing and subscription.

'The net proceeds of the placing will be used to strengthen the company's balance sheet and liquidity position, reducing leverage to deal with the challenging environment,' it added. Story provided by StockMarketWire.com