Compass Group Q1 Group Organic Revenue Surges 38.6%

Compass Group plc (CPG.L,CMPGF.PK) reported a 38.6% growth in its first-quarter group organic revenue, with revenues reaching 97% of the company's pre-COVID level. The quarterly improvement was largely driven by new business, continued strong client retention along with some ongoing recovery in the base business.

The company further noted that performance improved across all regions with four out of five sectors now trading above 100% of 2019 revenues. Growth was particularly strong in North America in Sports & Leisure and Education.

In Europe, all sectors traded well except for Business & Industry which continues to be impacted by reopening delays, while The Rest of World region continued to benefit from a higher exposure to the more resilient Defence, Offshore & Remote sector.

Looking ahead, the company continues to expect full year organic revenue growth of 20% - 25%, with quarterly growth rates moderating through the year, reflecting more challenging comparatives.

Full-year underlying operating margin is still expected to be over 6%, returning to around 7% by the year end.

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