Compass Group PLC Expects 8.5 Percent Revenue Growth In First Half Of Year

For the first half of the year to March 31, 2012, Compass Goup PLC, parent company of Compass Group North America and Canteen Vending Services Inc., reported the positive performance in the first quarter has continued into the second quarter and expectations for the full year remain unchanged. Total revenue growth is expected to be around 8.5 percent in the first half of the year and organic growth is set to increase by nearly 5 percent, driven by further good performances in North America and fast growing and emerging markets.

Overall, the operating profit margin for the first half is expected to be at the same level as the first half of last year.

Positive trading momentum in North America has continued with strong organic revenue growth across all sectors. Retention rates remain high and we continue to see some positive like for like revenue growth. Good levels of organic revenue growth have been delivered in business and industry and education and, in the second quarter, the sports and leisure business has benefited from the “catch up” games played following the NBA strike.

In health care, the company has seen strong organic revenue growth, driven in part by the accelerated start-up of the multi-service Ascension contract, which will be one of the largest contracts in North America.

During the second quarter, the company has agreed to divest of the corrections prison business, subject to the satisfaction of certain conditions, in line with a strategy of focusing on core growth sectors. The revenue of the corrections business in the year to Sept. 30, 2011 was $319 million (c.£198 million). Overall, organic revenue growth is expected to be around 7 percent and the underlying operating profit margin to be 20 basis points ahead of the same period last year. 

 

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