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Compass Group slashes costs, borrows more as lockdowns bite

April 23 (Reuters) - Compass Group said on Thursday it drew down 600 million pounds ($741.66 million) from the Bank of England’s corporate support scheme in March and had cut costs by around 450 million pounds a month as it seeks to ride out the wide-ranging coronavirus lockdown.

The UK-based catering group will not now pay interim or final dividends for the year ending September 2020, it said, and has also cut pay for its management.

It added that 55% of its business was currently closed due to the lockdown, and that the “drop through” impact of the crisis so far on its six-monthly operating profit was between 28% and 29%, in line with previous guidance.

$1 = 0.8090 pounds Reporting by Patrick Graham; Editing by Rashmi Aich

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