Compass hails revenue rise but warns of currency hit
Catering company Compass saw organic revenue rise 5.3 per cent for the last three months of 2019 as it landed new US contracts and held onto customers.
Organic revenue climbed 7.5 per cent in North America, particularly thanks to appetite among the business, healthcare and education sectors.
In Europe organic revenue was flat, however, which Compass blamed on “expected volume softness” in the business and industry sector and a “less favourable” sports and leisure calendar.
But robust growth in Australia helps revenue in the rest of the world to rise 4.7 per cent.
Currency movements also hurt the company, which counted a £71m blow to revenue and a £6m hit to profit.
And Compass warned that if the current adverse exchange rates continue 2019 revenue would dive £745m and operating profit would sink by £61m.
“We have had an encouraging start to the year and our outlook for 2020 remains unchanged with organic growth around the mid-point of our four to six per cent guidance range whilst maintaining our strong margin,” Compass said.
“In the longer-term, we remain excited about the significant structural growth opportunities globally, and the potential for further revenue and profit growth combined with further returns to shareholders.”
Compass chairman Paul Walsh announced last month that he will step down in 2020 after six years in the role.
He was not meant to step down until 2023 but said he will leave once the board finds a successor to pursue other interests.
‘It has been a privilege to serve for the last six years as chairman of Compass, which is a world-class business and a true British success story on the global stage,” Walsh said.