Plus   Neg

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Galaxy Entertainment Group (WYNN) Friday announced that it has agreed to purchase 5.3 million primary shares of Wynn Resorts Ltd. at a price of $175 a share, resulting in $927.50 million of gross proceeds to Wynn Resorts. The two sale, combined with a previous sale effectively eliminate ownership of founder and former CEO Steve Wynn in Wynn Resorts. Starbucks wants to be more efficient but it is risking the fragile loyalty of its most devoted customers. The ubiquitous chain plans a major push to get coffee lovers to use its mobile app to place their orders, but regulars prefer to buy their lattes by waiting in the queue. According to reports,... Taco Bell, the Mexican fast-food chain owned by Yum Brands Inc. (YUM), Thursday said it will start selling tortilla chips in grocery and convenience stores starting May. The chips will be available in Fire and Mild sauce packet flavors and also in a Classic flavor. "This launch of our first line...
comments powered by Disqus
Follow RTT