Lorne SteinbergCompass Group plcCPG.LTOP PICKJun 28, 2021

The provide food services everywhere as a contract caterer (i.e. sports stadiums, university canteens) and have a strong market share. 5-7% organic sales growth and 10% EPS growth and 95% retention rate.

Keeps making niche acquisitions, cutting costs, and generating pretty solid profit growth.

Fragmented industry, fantastic job buying up and integrating smaller operations. Double-digit earnings growth over a long time and for foreseeable future. Best in the business by far. Lots of runway. Based in UK.

Catering. Food courts, hospitals, schools, sports stadiums, offshore drilling. Revenues growing 8-10% per year. Huge free cashflow. Trend is that more and more companies want to outsource food supply. 60% of revenues are in US. Double-digit earnings growth, trades at 23x earnings. Compelling story. (Target price in pounds.) Yield is 2%.

There is tiredness to the oil sector and you can see it in the oil sands. You also have the overall dilemma of what is going to happen with our landlocked supplies and where are they going to go. This is one of the finest of these companies.