Compass sees UK decline as new markets fill gap

CATERING services giant Compass Group is expected to report a spluttering performance in the UK this week, with Australia and Brazil helping to shore up its figures.

The company, which operates in 55 countries, is expected to show growth of around six per cent in its Rest of the World division, while dropping by one per cent in the UK and Ireland. Its annual results are expected on Wednesday.

Across the rest of Europe growth is forecast to be flat, with total revenue across all markets expected to have grown by three per cent.
Keith Bowman, analyst at Hargreaves Lansdown said: “Few surprises are expected. Any comments in relation to rising food commodity prices, a major group cost, would disappoint on the downside.

“On the positive, continued healthy cash flow could allow for a bigger than expected rise in the dividend payment. Market consensus opinion currently denotes a strong hold.”

Meanwhile electrical retailer Dixons will give a trading update on Friday, which should help to indicate the state of consumer confidence in the tough economic climate.