Compass to see decline in growth in UK and Ireland

29 September 2011 by
Compass to see decline in growth in UK and Ireland

Compass is expected to see a decline of around 1% in its organic revenue in the UK and Ireland for its full financial year, which ends at the end of September.

The company said in a trading update this morning that while new business remained solid and retention rates were improving, difficult economic conditions were resulting in a "modest contraction" in like-for-like volumes.

As a whole, the group said it expected to see organic revenue growth of over 4% for the final quarter of its financial year, while full-year constant currency revenue growth, including the contribution from acquisitions, would be around 9%. Organic growth is expected to be around 5%.

However overall operating profit margin is expected to remain broadly flat, as a result of the effects of the earthquake in Japan earlier this year, and the impact of acquisitions.

Compass said organic revenue growth in the year had been driven by "strong levels" of new business wins, an improvement in the underlying rate of retention to around 94% and modest inflationary price increases. Overall for the year, like-for-like volumes are expected to remain flat, reflecting marginally positive growth in the first half and marginally negative like-for-like volumes in the second half of the year.

The company said it was positive about the future, although it expected economic uncertainty to put pressure on like-for-like volume in some parts of the business.

Compass's full-year results will be published on 23 November 2011.

Compass Group's Restaurant Associates backs Sustainable Fish City Pledge >>

Head to head: Can women have children and still reach the top? >>

Compass Group boosts school meals offer with Cygnet acquisition >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

Tabletalk
Tabletalk
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.catererandhotelkeeper.com/tabletalk

catererandhotelkeeper.com jobs

Looking for a new job? Find your next job here with catererandhotelkeeper.com jobs

Blogs on catererandhotelkeeper.com ](http://www.catererandhotelkeeper.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[E-newsletters](http://www.catererandhotelkeeper.com/email-newsletters.htm)[ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking