Compass serves up growth
COMPASS Group said it expected full-year earnings to rise by around 15 per cent after sales growth accelerated in the second half boosted by new contract wins and improved retention of existing customers.
The group, which counts Chelsea Football Club, London’s O2 arena, the Bank of England and the US Senate among its clients, said revenue growth, excluding acquisitions, improved to over five per cent in the second half of the year compared with 0.4 per cent in the first half.
For the full-year, it expected revenue growth to be around three per cent.
However, including acquisitions and, at constant currency rates, it is expected to be around four per cent.
Compass, which operates in 50 countries, said its operating margin is expected to have improved by around 40 basis points over the full-year.
The group said the ongoing challenging economic conditions are likely to continue to impact organic revenues in the near term but said it was encouraged by its pipeline of new business, while the strength of its balance sheet is enabling it to make acquisitions.
Shares in the group, closed down 1.5 per cent yesterday at 530.5p, valuing the business at £10bn.