Compass trading well in 'difficult environment'

By Emma Eversham

- Last updated on GMT

The contract caterer predicts a 4 per cent drop in revenue, but is expecting to deliver increased operating profit for the first half of the year

Contract caterer Compass said today it was expecting revenues to be 4 per cent lower than last year, but believes it is performing well in a `difficult environment`.

In a trading statement, the company said like-for-like volumes were lower than last year in the Sports & Leisure and Business & Industry sectors, but remained strong in the Healthcare, Education and Defence sectors.

Extended Christmas and New Year closures had an affect on business and the contract caterer said it had lost some `significant revenues` due to the heavy snowfall across much of the country in February.

However, despite some site closures in the B&I†sector, Compass said it was still winning new business in all sectors. Earlier this month, the company won a contract to provide food at all 14 of Jockey Club`s racecourses and it has also extended its deal to provide catering for the National Grid.

"The extensive re-structuring of this business over the past two years has enabled us to significantly improve the efficiency of our operations and, despite the difficult economic conditions, we expect to deliver increased operating profit and around 40 basis points of operating margin improvement in the first half," it said.

Compass will post its full half year results on May 13 for the six months to March 31.

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