Compass lifts outlook on bumper first half

(Sharecast News) - Catering giant Compass Group boosted its full-year outlook on Monday following a robust first half. The blue chip saw underlying revenues rise 9% on a constant currency basis in the six months to 31 March to $25bn, with organic revenues up 7.2% and new business wins totalling $4.1bn, a 14% hike.

Underlying operating profits were 12% stronger at $1.8bn.

As a result, the firm - which operates across 25 countries and employs nearly 600,000 people - now expects organic operating profit growth of more than 11% this year, up from previous guidance for around 10%. Organic revenues were forecast to grow by around 7%.

Chief executive Dominic Blakemore said there had been "great momentum" across the business during the first half, "driven by excellent new business wins, high levels of client retention and margin progression".

He continued: "Compass operates in a highly attractive market, with sectors that are expected to benefit from continued structural growth.

"Clients face increasing complexity, such as regulation, allergens and data-led insights, and these factors are driving demand for outsourcing across all sectors."

See latest RNS on Investegate