Compass anticipates 'modest' organic growth

12th May 2010 07:19

Catering giant Compass expects a strong new business pipeline and a stabilisation in like for like volume to deliver modest organic revenue growth during the second half.The firm grew profit before tax by 19% to £459m during the first six months and underlying profit by 14% to £462m.Reported revenue for the period to 31 March was up nearly 3% to £7.1bn, or just under 1% at constant currency, while organic revenue growth, which strips out the impact pf acquisitions and disposals, was 0.4%.There was a slight acceleration in the rate of new business wins to 9%, worth £18m, following deals with Wells Fargo in America and Britain's Aviva, and the pipeline of new business looks "encouraging".Like for like volumes began to show signs of stabilisation after three "very difficult" quarters.Compass also believes its ongoing focus on operating efficiency should help it make further progress in the margin in the second half of the year, compared to the same period last year. The dividend goes up 14% to 5p a share.