Compass trading update warns of slow growth for first six months of year
Challenging economic conditions in the UK and parts of Europe will slow growth for the first six months of the year at Compass Group, compared with the same period the year before.
The world's largest caterer said it expects total revenue growth to be about 8.5% in the half-year to 31 March 2012 with like-for-like growth increasing by nearly 5%.
Compass said in a trading update to investors ahead of its results announcement on 16 May, that its performance is being driven by North America and emerging markets.
The business committed about £160m to infill acquisitions in the same period, including NKS in Japan, Supercare in South Africa and DORA Gastro in Czech Republic
The group said: "As we look out to the second half, whilst the current economic uncertainty is likely to continue to put pressure on like for like volume in some regions, we remain positive about the opportunities to grow the business and we are encouraged by the pipeline of new business.
"We are well placed to capitalise on the significant structural growth opportunities in both food and support services around the world and we are increasingly expanding our presence in fast growing and emerging markets, which remain a focus for future growth."
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By Janie Manzoori-Stamford
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