Compass happy with fourth quarter

29th Sep 2009 07:12

Contract caterer Compass reports trading has gone well in the fourth quarter with underlying earnings to be up by around 14% on a constant currency basis.Margins are expected to be up 70 basis points in the fourth quarter to September and approximately 60 basis points in the full year as cost savings have offset a modest decline in revenue. Operating profit will get a boost of £120m from the movement of our key currencies compared with last year.Constant currency revenue growth, including acquisitions, is expected to be around 1% for the full year and organic revenue growth, a combination of net new business and like for like revenue growth, is expected to be broadly flat.UK full year revenues will be around 5.5% lower than last year. European revenues are also expected to be lower, though there were modest increases in North America and the rest of the World.