Compass dines on American contract wins

Kasmira Jefford
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CATERING giant Compass yesterday said it expects sales to grow by around five per cent in the first half of the year, as contract wins in the US helped to spur growth.

The FTSE 100 firm, which serves 4bn meals a year across 50 countries, said organic revenue across its North American arm should grow around 8.5 per cent in the six months to 31 March.

It has also seen strong growth in Australia thanks to its oil and gas business and expects its “fast growing and emerging markets unit” to report 10 per cent growth.

However, economic conditions across Europe and Japan “remained difficult” and it expects a revenue decline of around 2.5 per cent in tougher markets. Compass said it remained on track to meet full-year expectations, with Panmure Gordon forecasting profits of £1.15bn.