Retail & consumerLeisure, gaming and gambling
viewCompass Group

Compass Group cautious on emerging markets; revenue growth still expected overall


Catering firm Compass Group (LON:CPG) has warned that lower commodity prices are impacting its overseas business, although full-year revenue expectations remain positive. 

In a half-year trading update, the business forecast revenue growth of 5.5% for the six months to 31 March 2015, with good levels of new business and high retention rates.

The business will release the full-numbers in May, but expects organic revenue growth in Europe to be around 0.5% ahead; while North America is expected to see revenue growth of 8%.

Meanwhile, Compass also said its Japan business has returned to growth and that that new business wins in emerging markets are expected.

However, it warned that the economic environment "in some emerging markets is uncertain”, and lower commodity prices are impacting its offshore and remote business.

“Due to the weakness in like for like volumes in some emerging markets and pressures in our offshore and remote business, we expect the operating margin to decline by around 10 basis points,” it said.

Shares were up 0.5% in early deals to 1,181p. 

Quick facts: Compass Group

Price: 1939 GBX

Market: LSE
Market Cap: £30.78 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Highfield Resources advancing flagship potash project towards construction phase

Highfield Resources Ltd's (ASX:HFR) Peter Albert updates Proactive Lonodn's Andrew Scott on latest developments at its flagship Muga Potash Project in Spain. Muga’s ore reserve now consists of 108.7 million tonnes of proved and probable reserves at 10.2% potash for a 27-year life of...

23 minutes ago

2 min read