FTSE 100 group and international contract caterer, Compass Group, saw its market value rise by £1bn on 8 February, after it lifted its forecast for full-year growth. Organic revenue for the first three months to 31 December 2017 grew by 5.9%, “driven by strong levels of new business wins, excellent retention and good like for like revenues” a trading update stated.
The group posted a full-year growth forecast of 5.5% and said it was positive about “the significant structural growth opportunities globally and the potential for further revenue and margin growth”.
New CEO Dominic Blakemore (pictured), announcing the upbeat forecast, also paid tribute to his predecessor Richard Cousins, who was killed in a plane crash in Australia on New Year’s Eve.
“Richard left the business in great shape and that is further evidenced by the strong first quarter trading,” said Blakemore.
Compass, which operates in 50 countries and employs 550,000 people, has been particularly successful over the last quarter in North America, where its revenues increased 8.2%. In Europe growth was a more modest 2.1%.
Blakemore noted that in the UK the business had been hit by labour and currency-related food costs, but that the group was addressing that and expected margins to improve in the second half. The Compass trading update also noted “good growth in UK Business & Industry and a favourable calendar in Sports & Leisure”.
