Compass reports slowdown in decline of revenue growth

30 September 2010 by
Compass reports slowdown in decline of revenue growth

Compass Group has reported a slowdown in the decline of revenue growth in its UK and Ireland business.

The first half of the year saw revenue growth drop by 5.7% but the contract caterer said it expects the decline to fall to 1.5% for the last six months of the year.

In a trading statement released to investors today ahead of the full year results to 30 September, to be announced on 24 November, Compass said the improvement came despite challenging economic conditions that continue to affect like-for-like revenue in the B&I and sports and leisure sectors.

"For the full year we expect revenues to be just under 4% lower than last year. We have driven significant cost efficiencies in the year and expect to see around 20 basis points of improvement in the operating margin for the full year," it said.

The UK and Ireland business trend remains in stark contrast to the global group as a whole, which has seen the positive trading momentum of the first nine months continue in the fourth quarter. Organic revenue growth is reported to have improved from 0.4% in the first half of the year and is expected to be over 5% in the second half of the year.

Including the impact of acquisitions, Compass said it expects group level constant currency revenue growth to be around 4%.

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By Janie Stamford

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