Weak British pound helps Compass Group maintain profit

29th September 2009, 9:45am

Compass Group, the world's largest contract caterer, has today said it is performing well during the fourth quarter of its financial year thanks to new contract wins and the weaker British pound.

"We expect a favourable impact of £120 million on operating profit from the movement of our key currencies compared with last year – translating the profits of last year to this year's actual exchange rates. On a constant currency basis, underlying earnings per share are expected to grow by around 14%. Cash flow conversion remains strong," said the company in a statement.

Compass did see levels of custom drop in the sports and leisure and business and industry sectors as unemployment levels increased and client spend fell.

The company added that like-for-like volumes in the education, healthcare, defence, offshore and remote site sectors "have remained solid throughout the year".

Compass concluded its statement by saying it remains cautious despite the positive outlook: "In the short term, the prevailing economic conditions are likely to continue to impact organic revenue growth. In the medium term, the Group is set to enjoy the combination of structural growth in outsourcing and, as the global economies recover, a cyclical upswing in demand."

The company's full year results will be announced on the 25th November 2009 and you can check back here on CostSectorCatering.co.uk for the news.

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