Compass finds its way to revenue growth to keep it on track for year

COMPASS Group, the world’s biggest caterer, said its expectations for the full year were unchanged after delivering a good performance in the third quarter of its fiscal year.

The company, which serves around 4bn meals each year in over 50 countries, said constant currency revenue increased by over eight per cent in the quarter to end-June compared with the same period the previous year.

“We are encouraged by the pipeline of new business and the ongoing opportunities we have to generate further efficiencies. After absorbing the profit impact of events in Japan, our expectations for the full year remain unchanged,” Compass said in a statement.

Compass, whose clients include London’s 02 Arena, the Bank of England and Chelsea Football Club, said organic revenue rose by 4.5 per cent during the period.

“Third quarter organic revenue growth has been driven by good levels of new business wins and a high contract retention rate,” the company said.

Compass added that, in North America and the rest of the world, comparable revenues were positive, while in Britain and much of continental Europe conditions were more challenging.

After absorbing the impact of the earthquake and tsunami in Japan, the operating margin in the quarter was broadly in line with last year.

Excluding the Japan impact, it would have increased by around 20 basis points.