Compass 3Q Organic Revenue Growth Accelerated To 5.5%

28th Jul 2010 07:15

LONDON (Dow Jones)--Compass Group PLC (CPG.LN), a provider of contract food service and support services to clients, said Wednesday that the rate of organic revenue growth has accelerated to 5.5% in the third quarter, or 2.0% for the nine months to June 30. MAIN FACTS: -Strong growth has been driven by increased new business wins across the Group and a slight improvement in the rate of retention. -Like for like volumes in the Business & Industry and Sports & Leisure sectors remain challenging but are now broadly level with the same period last year. -Through the application of the company's operating framework MAP, generated further efficiencies, which, in part, are being re-invested to support exciting growth opportunities around the world. -Made further good progress in the margin of around 35 basis points in the third quarter of the year compared to the same period last year. -Free cash flow conversion remains strong. -Continues to seek out infill acquisition opportunities that enable Compass to take advantage of the significant growth opportunity in its core food and fast growing support services markets in both developed and emerging countries. -There has been no significant change in the financial position of the Group in the period since the end of the first half of the year. -Encouraged by the new business pipeline and the slight improvement in retention rates. -Now expect organic revenue growth to be over 2.5%. -The ongoing focus on operating efficiency should, after re-investment, enable it to deliver further progress in the operating margin compared to the same period last year. -Over the longer term, Compass Group is well placed to benefit from the significant structural growth opportunity in food and support services. -The acceleration in the rate of new business wins is encouraging and in an environment where cost efficiency is high on the agenda, the benefits of outsourcing are clear. -Shares closed Tuesday at 558.0 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 28, 2010 02:15 ET (06:15 GMT)