Compass happy with year forecasts

31st Mar 2011 07:07

Contract caterer Compass's good start to the new financial year has continued through the six-month period, leaving it comfortable with forecasts for the full-year.In a statement ahead of interims on 18 May, the firm said constant currency revenue growth, including the impact of acquisitions, was about 9.5%, with organic growth at 5.5%.There's also been a "slight" increase in like for like revenue against the weaker comparatives of the first half of 2010. Margin has improved by about 20 basis points.Menu planning, professional purchasing, cost cutting and price hikes are in place to offset an expected increase in food prices during the second half. On a constant currency basis, underlying earnings per share is expected to grow by around 12%. Cash flow conversion is still in line with expectations. "As we look out to the second half, we are encouraged by the pipeline of new business and the ongoing opportunities we have to generate further efficiencies. As such, our expectations for the full year remain unchanged," the firm said.LW