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Caterer & Hotelkeeper Magazine

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Compass expects growth

Ben Walker
Wednesday 21 May 2003 14:55
Compass Group's interim results were due to be announced after Caterer went to press this week. The largest contract caterer in the world was expected to announce at least 6% growth in like-for-like turnover, together with an improvement in like-for-like margin.

In the UK, turnover growth was expected to be 5%, in the USA 7%, and in Europe and the rest of the world 6%.

Analyst Paul Steegers at Merrill Lynch forecast total turnover of £5.39b for the six months to 31 March, up from £5.01b for the same period in 2002. Profit before tax and goodwill was estimated at £275.8m, up from £258m in 2002.

The group was expected to report an improvement in free cash flow, and give updates on its 95% contract retention and the progress of its share buy-back programme.

In February, Compass completed the sale of Travelodge and Little Chef to Permira for £712m. Proceeds were used to reduce borrowings and fund the share buy-back programme.

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