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Compass Sees About 8.5% Revenue Growth In H1 - Update

Compass Group Plc (CMPGF.PK,CPG.L), Tuesday, said it expects total revenues in the first half to grow by about 8.5 percent from the prior year. The British catering group's organic revenue growth is set to increase by about 5 percent, driven by further good performances in North America and fast growing and emerging markets.

Meanwhile, like-for-like revenue growth is expected below the levels of the prior year, as challenging economic conditions continue to impact like-for-like volume in the UK and parts of Europe.

Operating profit margin for the first half is anticipated to be at the same level as last year, while the company continues to see good levels of free cash flow conversion.

Though Compass is increasingly expanding its presence in fast growing and emerging markets, it sees the current economic uncertainty likely to continue to put pressure on like-for-like volume in some regions in the second half of the year. The company also stated that its expectations for the full year remains unchanged.

In the first half, positive trading momentum in North America has continued with strong organic revenue growth across all sectors, the company stated. Retention rates also remain high and it continues to see some positive like-for-like revenue growth.

In fast growing and emerging markets, organic revenue growth has been strong, driven by good levels of new business wins and good like-for-like revenue growth, Compass noted. Including contribution from acquisitions, the company expects revenue growth of 19 percent, with organic revenue growth of over 12 percent in the first half.

CPG.L closed Monday's regular trading at 668 pence on the LSE.

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by RTT Staff Writer

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