Compass Group reports 4% growth for Q3
Global catering giant Compass Group has reported organic revenue growth of 3.9% for the nine months to 30 June 2014, and 4% for the third quarter.
The positive trading position continues to be driven by its North America and Fast Growing & Emerging markets, which both reported 6.5% lifts in the quarter, and 6.4% and 8.4% for year-to-date respectively.
Meanwhile Europe and Japan continues to play catch up. Organic revenue decline has slowed to a rate of 1.2% for the third quarter and 1.8% for the nine-month period.
"The contract exits related to the 2012 cost reduction programme were largely completed during the third quarter and volumes, although still negative overall, are showing signs of improving," the company said in its trading update. "The investments we have made in sales and retention teams are being reflected in an encouraging pipeline of new business."
Compass said it had committed around £100m to infill acquisitions in the financial year to date and has received US$40m (approximately £23m) relating to the disposal of a small non-core support services business in North America.
Looking ahead to the fourth quarter, Compass said its overall expectations for the full year remain "positive and unchanged" and added that the pipeline of new contracts is encouraging.
