Interim Results - Part 1

Compass Group PLC
17 May 2000

Part One
  
                             COMPASS GROUP PLC
                                       
                           INTERIM REVIEWED RESULTS
                     FOR THE HALF YEAR ENDED 31 MARCH 2000
                                  HIGHLIGHTS

*    Turnover up 12.1% to £2,657.2 million (1999: £2,370.3 million).
*    Profit before taxation up 15.0% to £90.7 million (1999: £78.9 million).
*    Earnings per share up 17.6% before amortisation of goodwill.
*    Dividend up 14.0% to 2.28p per share (1999: 2.00p per share).
*    Free cash flow up 23.9% to £84.0 million (1999: £67.8 million).
*    Like  for like growth in turnover 8% and in operating profit 14% (before
      amortisation of goodwill).
*    Infill  acquisitions in Italy and the USA during the period for a  total
      consideration of £44.5 million.
*    A  number of major new contract gains and a contract retention  rate  in
      excess of 95%.

Francis Mackay, Chairman, said:
'We are entering into a significant phase for our continually expanding group,
with a number of major challenges ahead both in continuing with the successful
growth  we have been sustaining in our businesses historically, and  with  the
integration of newly acquired businesses to our own.

We are very confident that these challenges can be met, and look forward to  a
future of continuing growth and earnings improvement.'

Mike Bailey, Chief Executive, said:
'We are in a very good position as we move into the second half of the
financial year.  There have been a number of major new contract gains recently
and our pipeline of potential new awards is strong.  Infill acquisitions made
recently have been integrated successfully, and it is anticipated that this
process of enhancing growth will continue.'

Enquiries:
17 May 2000 until 3.30pm
Francis Mackay  Chairman                Compass Group PLC        020 7796 4133
Michael Bailey  Chief Executive         Compass Group PLC        020 7796 4133
Andrew Lynch    Group Finance Director  Compass Group PLC        020 7796 4133
Nick Lyon                               Hudson Sandler Limited   020 7796 4133

Thereafter
Francis Mackay                          Compass Group PLC        01932 573 000
Michael Bailey                          Compass Group PLC        01932 573 000
Andrew Lynch                            Compass Group PLC        01932 573 000
                                                                   
                                       

COMPASS GROUP PLC

CHAIRMAN'S STATEMENT

It is a pleasure to be able to report yet another half year of excellent
results for the Group, thereby maintaining our unbroken run of improvement in
profits, turnover and earnings per share.

In July of last year we reported to you a number of management changes, with
Mike Bailey becoming Chief Executive.  Mike has established a strong executive
team bringing in experience from within and outside the organisation,
successfully blending together an international group of directors who are
close to business operations.

I am pleased to be able to report that this is working very successfully as
the results show, and our strategy for growth has been significantly enhanced.

We also reported that John Thomson would be retiring from the board at the AGM
in February, which he did.  I would like to recognise the contribution John
made to the development of the Group during his period as Chairman.   His
chairmanship of our Board during a period of great growth and development was
an important element in our success.

Valerie Gooding was appointed as a non-executive director during the period.
Valerie, who is Chief Executive of BUPA, is already providing a valuable input
to Group  Board  proceedings and further underlines the independence of the
Board.

DIVIDEND
An interim dividend of 2.28p (net) per ordinary share of 2.5p each has been
declared on the existing share capital, an increase of 14.0% on last year's
figure of 2.00p (net).  Payment will be made on 16 August 2000 to shareholders
on the register at the close of business on 21 July 2000.  The ex-dividend
date will be 17 July 2000.

PROSPECTS
We are entering into a significant phase for our continually expanding group,
with a number of major challenges ahead both in continuing with the successful
growth we have been sustaining in our businesses historically, and with the
integration of newly acquired businesses to our own.

We are very confident that these challenges can be met, and look forward to a
future of continuing growth and earnings improvement.



F H Mackay
Chairman


COMPASS GROUP PLC

CHIEF EXECUTIVE'S REPORT

I am pleased to report for my first time to you as Chief Executive, that we
have achieved another first half year of record operating profits and turnover
for the Group.  For a number of years now our turnover growth has exceeded the
growth within our marketplace and this half year is no exception.  Reported
turnover increased by 12.1% to £2,657.2 million, whilst like for like turnover
growth (excluding the effect of exchange rate movements and the impact of
acquisitions) was 8%.

Other key results were also positive during this  period.  Profit before
interest and taxation was up 15.6% at £128.7 million (1999: £111.3 million)
and profit before taxation was 15.0% up at £90.7 million (1999:£78.9 million)
when compared to the first half of last year.  Like for like profit before 
interest and taxation was 14% up, and adjusted basic earnings per share
(before goodwill amortisation) increased to 10.0p, a 17.6% increase
(1999: 8.5p).  Like for like margins in all operating divisions have improved.

DIVISIONAL PERFORMANCE
United Kingdom
Turnover of our UK business of £419.3 million was 8.5% up (1999: £386.5
million) and operating profit of £27.6 million was 12.2% up (1999: £24.6
million) both on a reported and a like for like basis.  This resulted in a
margin increase from 6.4% in 1999 to 6.6% for 2000.

Notable events during this period included the following major contract gains:

Halifax Building Society
Eurest has been appointed to provide foodservice and hospitality catering for
Halifax PLC at their offices in Leeds, Scotland and Ireland.  Catering for
over 3,500 staff at four sites, the service includes the use of Upper Crust,
Ritazza and StopGap.  Beverage and snack vending will also be provided as part
of the contract, which has been awarded initially for three years.

Southend Hospital
Bateman will be catering at Southend Hospital NHS Trust to provide foodservice
to over 3,000 customers a day in a contract which includes the use of its
brand Caffe Ritazza.  The contract is initially for five years with a further
option for two years.

Manchester Business School
Chartwells has been appointed to provide foodservice at Manchester Business
School, initially for a period of five years.  Foodservice brands being
introduced to the site include Upper Crust, Caffe Ritazza and StopGap.  The
contract includes staff, student and visitor catering in four locations around
the site.

North America
Turnover of £904.4 million was 12.6% up (1999: £803.4 million) and operating
profit (before goodwill amortisation) of £40.3 million was 18.9% up (1999:
£33.9 million).  Like for like turnover growth was 8% and the margin on a like
for like basis was up from 4.2% in 1999 to 4.5%.


Notable events during the period included the following major contract gains:

San Francisco State University
Chartwells continues to grow successfully in the USA with its appointment to
provide foodservice at San Francisco State University.  Chartwells will work
at three sites, including the use of both Upper Crust and Ritazza, with total
annual sales approaching $3 million.

McGraw Hill
Eurest has been awarded a contract which will initially run for three years
for foodservice at seven sites for McGraw Hill in the USA, with total annual
sales of around $1.5 million.

Gateway
A national contract was awarded to Eurest in combination with Canteen Vending
for foodservice and vending at over ten sites with an annual turnover of over
$6 million.

Microsoft
The extension of the previously announced Microsoft contract to include
foodservice at their San Jose facility was announced in the period.

IBM - long term contract renewal
During the period, the division has renegotiated its food and vending contract
with IBM, being the largest long term contract renewal that the Group has ever
signed.

The Group was awarded the contract for the majority of IBM sites in North
America in 1995, the year Eurest Dining Services was launched.  At the time,
it was the largest contract in the industry's history.

The contract now is for operations at 64 outlets in 32 locations, serving more
than 100,000 IBM employees in dining rooms, customer briefing centres, sundry
shops, executive dining facilities and vending sites.

Continental Europe and the Rest of the World
Turnover of £1,333.5 million was 13.0% up (1999: £1,180.4 million) and
operating profit (before goodwill amortisation) of £65.1 million was 21.7% up
(1999: £53.5 million).  Like for like turnover was up 8% and the like for like
margin of 4.6% was also up (1999: 4.3%).

Notable events during the period included the following major contract gains:

Denmark
Our team in Denmark has been appointed to provide the majority of staff
foodservice for Denmark's largest telecommunications business, TeleDanmark.
The agreement is for their seven largest restaurants at several locations in
the Copenhagen area, initially catering for 3,500 customers a day.  Brands
have played a key role in these contracts and over the year Eurest will be
introducing Upper Crust, Profiles and a range of other choices for the
customers.  Additional sites will be under discussion with TeleDanmark for
their sites outside Copenhagen.


United Arab Emirates
Eurest has been appointed to provide foodservice for Siemens AG on the
Taweelah A2 (the largest privately funded power project in the United Arab
Emirates).

Germany
The single sourcing to Eurest for all foodservice in Germany by
Metallgesellschaft - the first ever national catering contract in Germany  -
was awarded in the period.  Eurest will work at 27 sites and provide
foodservice for 20,000 customers.  This initially doubles the size of Eurest's
contract with Metallgesellschaft to a total turnover of almost £7 million per
annum.

Hungary
The award was made for a 20-year contract at the prestigious Gerbeaud Cafe in
Budapest, a major award in a fast developing East European business.

Belgium
The appointment was announced for foodservice at the new site for Volkswagen
in Brussels, with annual turnover in excess of £1.6 million.

France
Select Service Partner has won an important contract with Virgin Stores SA  to
operate the cafes in the Virgin Megastores in France.

The six-year contract is to operate a new concept called Virgin Cafe in
Virgin's four French Megastores, located in Paris (Champs Elysees),
Marseilles, Dunkerque and Bordeaux.  Virgin expects to open new stores in
Paris and other major cities in France in the coming months, each expected to
include a Virgin Cafe instore.

Global Business Division
This division comprises the Group's business in the global sectors of
concessions, inflight foodservice and offshore and remote site contracts.

Major contract gains included:

East Timor
Eurest has been awarded a number of contracts in the East Timor region:

In February, Eurest Support Services was awarded the $2 million contract for
catering and accommodation services aboard the floating accommodation
facilities Olympia and Amos to provide meals and housekeeping services to 800
persons per day, including UN civilians, peace keeping forces and commercial
travellers.

Eurest Support Services has been awarded an initial two-year contract for UN
rations provision with an option for a further two years which will make the
contract worth up to US$60 million.

Eurest Support Services has formed a joint venture with the Australian
Frontline organisation to provide retail services, including Ritazza, Upper
Crust and StopGap, to UN troops and civilians.

Birmingham Airport
The opening of the first Americana style Burger King restaurant in the UK at
Birmingham airport, together with the opening of a 'blues music bar' at this
location.

Detroit Airport
Select Service Partner has been awarded the single largest contract for food
and beverage services at the new passenger terminal of Detroit Metropolitan
Wayne County Airport, Michigan, USA.

The new terminal, which will open in mid 2001, represents the largest element
of a major redevelopment of the airport, which currently handles over 34
million passengers a year.

The contract awarded to Select Service Partner is for a minimum of seven years
with an option for a further three years and is initially worth in excess of
$200 million.

Select Service Partner will operate in a total of 19 locations offering a
mixture of Compass Group's owned brands, such as Upper Crust and Caffe
Ritazza, as well as many well-known local brands, such as Zingermans Deli, Big
Boy and Buddy's Pizza.  An exclusive agreement has also been reached to
operate a Motown Cafe at the airport.

Eurest Support Services - USA
Eurest Support Services, the defence, offshore and remote site subsidiary of
Compass Group, has been awarded a ten-year contract with Naval Exchange
Service Command, or NEXCOM, to operate foodcourts in North America.  This
contract has total sales of over £70 million with the opportunity to add
further sites.

The contract will cover six major bases in the US and two in Italy, and will
provide catering for over 270,000 personnel.  Eurest began operations in April
at Naval Station Mayport, Florida, which has a customer base of more than
48,000 including personnel on the base and retired personnel in the community.
In addition, Eurest will begin operations this year at the following bases;
Jacksonville and Pensacola in Florida with a customer base of 66,000 and
68,000 respectively; Patuxent River, Maryland with a customer base of 18,000;
and Norfolk, Virginia, with a customer base of 72,000.

Eurest Support Services - North Sea
Eurest Support Services has been retained to provide onboard foodservice for
Statoil at their four large Statfjord platforms, sited in the largest oil
field in the North Sea.  The contract is initially for a further five years
with options for additional periods.  Initial contract turnover is
approximately £50 million.

Inflight
Eurest has signed a five-year contract with the Spanish national airline
IBERIA which names Eurest as the preferred supplier in the majority of
airports world-wide where Eurest is located.  The contract is initially worth
£30 million over five years but it is the intention of IBERIA to reach a
global level of co-operation with Eurest.  Currently the volume in catering
services of IBERIA world-wide is over £70 million per year.

Also, Select Service Partner has renewed its airport restaurant contract with
Gran Canaria Airport.  This is a seven-year contract from 1 July 2000 with a
total turnover of over £3.5 million.

Le Groupe Flo agreement
An agreement was signed with Le Groupe Flo which gives exclusive rights to use
the Groupe Flo brands within the specific market sectors served by Compass
Group in France.

The brands, Hippopotamus, Cafe Flo and Petit Bofinger, will be offered by
Compass Group's retail, travel and leisure subsidiary, Select Service Partner
at a range of French sites including airports, railway stations, motorways,
museums and shopping centres.

INVESTMENTS
Compass Group Italia
On 22 March 2000 the acquisition of My Lunch SPA and Rial was announced, for a
total consideration of £11 million.  This is a strategic move into the
attractive Italian market where Group penetration was previously low.

The Group now employs 1,500 people with annual sales in excess of £30 million
in Italy.  This is the fourth largest European contract foodservice market
with a total market in excess of £4 billion and the recent acquisition takes
the Group into the top ten in the country.

Compass Group Italia now has business in all major sectors - business and
industry, education, healthcare and concession.  Sister companies for My Lunch
and Rial in Italy are Eurest Support Services (clients include NEXCOM at
Naples and Sicily US airbases), La Ristorazione and Select Service Partner
Italia (at Malpensa airport).

Select Service Partner, Sweden
Select Service Partner has moved onto rail stations in Sweden with the
acquisition of Swedish Rail's Trafikrestauranger subsidiary in April 2000.

North America Division
In April 2000 Compass Group acquired Trinity Services Group, which provides
foodservice and commissary to corrections facilities in Florida, Georgia and
the US Virgin Islands.

Trinity operates 37 county and state locations and has over $30 million in
annual revenues.  It is the largest corrections foodservice company in
Florida, which has the third highest inmate population in the country.

Trinity was founded a decade ago by Chief Executive Officer, Larry Vaughn, and
Chief Operating Officer, Peter Hess, who will remain with the company.

FINANCING
Cash flow generation from operations continues to be strong, with free cash
flow in the period of £84.0 million (1999: £67.8 million).  Net debt at 31
March 2000 of £1,130.7 million compares to £1,065.6 million at 30 September
1999 and includes £215.7 million of convertible loan stock.  The increase in
debt was after acquisition payments of £93.8 million, which included the
Australian P&O business, the acquisition of My Lunch and, in the  US, Patina
and Newport Foods.

The Directors believe that the average taxation rate of 25.5% of the profit on
ordinary activities before taxation and goodwill amortisation is a prudent
estimate of the full year rate. We believe that, subject to future changes in
tax rates, it can be maintained for the foreseeable future.



M J Bailey
Chief Executive

COMPASS GROUP PLC

AUDITORS' REPORT

Independent Review Report to Compass Group PLC

Introduction

We have been instructed by the company to review the financial information set
out on pages 10 to 18 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.   The Listing
Rules of the UK Listing Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the United Kingdom Auditing Practices Board.  A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial
data and based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed.  A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions.  It is substantially less in scope than
an audit performed in accordance with Auditing Standards and therefore
provides a lower level of assurance than an audit.  Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2000.



Deloitte & Touche
Chartered Accountants
London
17 May 2000


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