Terrorist attacks set to wipe £5m off profits at Compass

The events of 11 September in New York will knock £5m off Compass Group's profits during the 2001 financial year, the company said last week in a trading update.

In New York, seven sites operated by the contract caterer were destroyed. Two of these will reopen early next year. A further 14 sites were temporarily closed.

No Compass contracts in Washington were affected. Although the group won a contract at the Pentagon earlier this year, it had not yet moved into the building.

The expected £5m loss in profits is a result of disruption to trading, mainly in New York, and knock-on effects such as the postponement of the Ryder Cup golf championship in the UK, plus the cost of support to the rescue and recovery operation in New York. Compass provided more than 120,000 meals in support of the humanitarian effort.

Apart from the small reduction in profits as a result of 11 September, the group expects its pre-tax profits for the financial year to 30 September to be in line with expectations. Both like-for-like sales and profit margins have increased.