Compass backs FY outlook as Q1 organic revenue jumps 7.3%

5th Feb 2026 07:47

(Sharecast News) - Compass Group backed its full-year guidance on Thursday as it hailed a strong start to the year, with both regions and all sectors performing well.

The catering company said first-quarter organic revenue grew 7.3%, with growth of 7.3% in North America and 7.1% for international.

Compass said Sports & Leisure (S&L) and Business & Industry (B&I) remained its fastest‑growing areas. B&I achieved double‑digit organic growth in North America thanks to "robust" first‑time outsourcing (FTO) wins and continued expansion within the technology sector.

Net new business growth was within the 4-5% range, underpinned by strong client retention above 96%, it said.

"Pricing moderated as anticipated in a lower inflation environment, while volumes continued to contribute positively to growth," it said.

Annualised new business wins rose 10% on the year to $4bn, with nearly half generated from FTO.

The company reaffirmed 2026 guidance for around 10% underlying operating profit growth at constant currency. It also said the $1.7bn acquisition of Dutch food services business Vermaat completed in December.

Compass also announced on Thursday that it was changing the currency of its share price from sterling to US dollars.

"This transition aligns the group's share price trading currency with its reporting currency, reducing FX volatility in the share price and simplifying the investment case for global investors," it said.

Chief executive Dominic Blakemore said: "We have delivered a strong start to the year with broad based growth across every region and sector. The momentum in our B&I segment, particularly in North America, reflects the strength of our model and the value we continue to deliver for clients.

"The acquisition of Vermaat expands our capabilities in key European markets and will further accelerate growth. With strong new business wins, disciplined execution, and a clear strategy, we remain confident in our outlook and our ability to drive sustainable, long-term value for shareholders."

Compass shares closed 2.1% lower at 2,175p.

JPMorgan analyst Estelle Weingrod pointed out that year-to-date, the stock has been weak, dragged down by FX and concerns about the impact of AI on office jobs. She said that while a "sound in-line" print should otherwise be sufficient to reassure sentiment, it is unlikely to do so in this case.

The stock is down 8% YTD.

Meanwhile, Dan Coatsworth, head of markets at AJ Bell, said the currency change could suggest that Compass is "next on the block to switch its main stock listing from the UK to the US".

"Compass says this aligns the trading currency with its reporting currency, but in doing so makes it an outlier among the plethora of multinational companies on the UK stock market who almost all have their shares in sterling," he said.

"Admittedly, InterContinental Hotels recently made a similar switch, but these two companies are the exception, not the rule.

"It's common for big companies to be listed on more than one stock exchange, and to have shares quoted in different currencies. Compass is only listed in the UK, yet North America has become the big driver of business, now representing 68% of group revenue.

"It makes perfect sense to switch the listing to the States if it wants to immerse itself in the priority operating region and have greater appeal to local or global investors. Having a dollar-denominated share price now would make the transition much easier, should it decide to move later.

"Alternatively, there is an argument that UK investors are well versed in buying dollar-denominated shares given the popularity of US tech stocks in ISAs and pensions. They might not have any issue buying a dollar-denominated Compass share if they like the investment case. In this situation, Compass could argue it's getting the best of both worlds - it stays on the London market and continues to serve UK investors, while the dollar pricing theoretically broadens its appeal to US investors and removes any currency concerns for them."