Compass points way with strong trading

Compass, which generated sales of more than £14bn last year, said new contract levels were solid and that “steady” like-for-like growth helped lift revenues in the three months to December 31.

The Surrey-based group said trends seen in the second half of last year had been “broadly” maintained into the first quarter, suggesting ongoing improvements in its embattled UK and Ireland arm.

The division has been impacted by economic conditions in recent years, particularly in the sport and leisure and business and industry sectors.

But the decline in revenues eased from a 5.7 per cent drop in the first half of its last financial year to September 30 to a 1 per cent decline in the second half.

North America and other overseas markets continue to drive growth, according to Compass.

It said the first quarter revenue rise reflected “strong growth both in foodservice and in our fast growing support services business and we are encouraged by the pipeline of new business opportunities”.

Compass provides catering at famous venues including Chelsea Football Club and the Wimbledon tennis championships.

Analysts praised yesterday’s first quarter revenues, with broker Panmure Gordon saying the first quarter growth was better than the 4.5 per cent it had forecast.

Numis Securities analysts added that the recovery in Compass’s markets had “barely begun”.