Compass points to ‘positive’ full-year performance

Catering giant Compass today said its hopes for the full year “remain positive” despite uncertain conditions in some of its emerging markets.

The group, which employs more than 500,000 people and serves four billion meals a year, also told investors it was having a “strong” first half, results for which will be announced on 13 May.

Compass expects organic revenue growth of about 5.5 per cent for the six months to 31 March, along with improved operating profit margins.

It also said the stronger pound in relation to other currencies including the euro, Australian and Canadian dollars and Japanese yen is expected to boost first-half revenues and profits by £35 million and £5m respectively.

“Compass is having a strong first half and our expectations for the full year remain positive,” the group said in today’s trading update.

“However, the economic environment in some of our emerging markets is uncertain, and lower commodity prices are impacting our offshore and remote business. Nevertheless, our pipeline of new contracts is encouraging, and our continued focus on organic growth and efficiencies gives us confidence in achieving another year of delivery.”