UK Support Services Sector Slumps in Volatile Trading
Shares in several of the UK’s largest support services companies have come under renewed pressure as investors assess the impact of social and economic disruption from the COVID-19 pandemic on future earnings.
Shares in companies with significant exposure to the contract catering, hospitality and events sectors came under heavy pressure with market behemoth, Compass Group, slumping 9.33 per cent to 103.50 pence in afternoon trading. Last week the FTSE 100 company cut its forecast for organic growth for the First Half of 2020 to between 0 and 2 per cent in response to government measures in Europe and the United States to contain the spread of coronavirus by shutting schools and cancelling sports fixtures – two of its core contract catering markets.
Strategic facility outsourcing and energy services company Mitie Group also succumbed to poor investor sentiment, with shares in the FTSE 250 company falling 10.11 per cent to 8.70 pence in afternoon trading.
Shares in security services business and FTSE 250 constituent company G4S also traded down 11.53 per cent at 10.58 pence. Earlier this month the company reported a £91 million loss on its cash-handling division, as well as uncertainty in relation to its works and projects business.