Pre-close trading update

Compass Group PLC
25 March 2003



                    COMPASS GROUP PLC: PRE-CLOSE UPDATE

          CONTINUED DELIVERY - IN LINE WITH MANAGEMENT EXPECTATIONS

Compass Group PLC will issue its interim results for the six months ending 31
March 2003 on 21 May 2003.   Prior to its close period, the Group today issues
the following trading update.

Compass Group continues to build on the solid performance of 2002 and expects
trading in the first half of this financial year to be in line with management
expectations.  The Group remains on track to deliver at least 6% like for like
turnover growth, together with a 20 to 30 basis point improvement in like for
like margin.  In addition, the Group continues to expect to deliver improved
free cash flow generation over the full year compared to last year.

Despite a challenging global environment, Compass Group continues to deliver a
resilient performance, and assuming no material change in global economic
conditions, the Group believes it is in a strong position to maintain its
progress in all divisions.  This is due to the successful implementation of its
unique business model - which combines contract and concession foodservice with
vending, alongside the use of its portfolio of foodservice brands.

Like for like turnover growth

Trading in the financial year to date has continued to be in line with
management expectations.   Compass Group therefore remains confident of
achieving at least 6% like for like turnover growth for the full year.

In the first half, like for like turnover growth for the UK division is expected
to be 5% (excluding fuel, Travelodge/Little Chef and two remaining hotels), in
the Continental Europe and the rest of the world division it is expected to be
6% and in the North American division it is expected to be 7%.  This results in
overall like for like growth rate of 6% for the first half of the year.

The Group is maintaining its contract retention rate of 95% and continues to win
excellent new contracts.  Compass Group is pleased to announce today the
retention of its national contract with BT for a further seven years.  The
contract has annual revenues of £25 million.  Further contract renewals and
gains are detailed below, and include Pfizer, Exxon Mobil, Suncor and DZ Bank.

Like for like margin growth

The Group's like for like margin is expected to increase by between 20 to 30
basis points for the full year, with the like for like margin moving forward in
all three divisions in the first half.  The full year like for like margin
improvement will include the final tranche of the Granada merger synergies,
bringing the total annual synergies from the transaction to £70 million.

Free cash flow

Compass Group continues to anticipate an improvement on last year's strong free
cash flow generation for the full year.

The Group anticipates that first half free cash flow in 2003 will exceed that
achieved in the first half of 2002.  However, the Group's business profile is
such that its cash flows are seasonal and free cash flow generation will be
second-half weighted as in previous years.

Acquisitions

The Group remains committed to its strategy of focusing on its core foodservice
and vending businesses, and management's expectation is that the aggregate value
of acquisitions made during the 2003 financial year will be approximately £200
million.  This includes the already announced acquisition of a 60% stake in
Onama S.p.A, based in Milan, Italy.  Management are pleased with progress of the
integration of Compass Group's existing Italian business into Onama and the
market leading position in contract foodservice this acquisition has brought.

Disposals

In February, the Group successfully completed the sale of Travelodge and Little
Chef for a total cash consideration of £712 million.  Proceeds were used to
reduce borrowings and fund an on market share buy back programme of up to £300
million, which began on 4 February 2003.  As of 24 March 2003, the Company has
purchased 14,790,000 shares at a total cost of £41,700,000.

Outlook

The Group remains committed to delivering solid organic growth, continued margin
improvement, strong free cash flow generation and improving its return on
capital employed.

Michael J Bailey, Chief Executive, said:

'I am pleased to report that trading in the first half of the current year is in
line with management expectations.

'Compass Group is the leader in the £250bn foodservice and vending markets.  Our
consistently strong performance in a challenging economic environment is due to
the commitment of our employees to the successful implementation of our unique
business model that continues to drive excellent contract retention rates and
new business gains.  We are well placed to take advantage of the growth
potential in our markets and benefit from our global purchasing power and
flexible cost structure.'


                                      ENDS


Teleconference

An investor's teleconference will start at 9.30am (GMT) on Tuesday 25th March
2003. To participate in the teleconference call dial + 44 (0) 208 240 8240.  A
replay of the call is available for five working days (until 31st March) by
dialing [phone]; passcode 728672.

By dialling this number you will be requesting participation in any discussion
of the matters referred to in the teleconference and of any matters raised
(including matters raised in questions or referred to in answers to questions.)

Enquiries

Compass Group PLC                                                  01932 573000
Michael J Bailey, Chief Executive
Andrew Lynch, Finance Director

Brunswick                                                          020 7404 5959
Timothy Grey
Simon Sporborg


Notes

1.      Contract Retention and New Business:  Compass Group's unique and
        resilient business model and strong market position continue to drive 
        organic growth through new business wins and the retention of existing 
        contracts.  As noted above, Compass Group is particularly pleased to 
        announce today the following contracts:

            • Business & Industry:  In North America the Group has been awarded
              10-year contract for the corporate headquarters of electrical 
              retailer Best Buy with annual revenues of $4 million and has been 
              re-awarded contracts with Exxon Mobil with annual revenues of 
              $5 million, Pfizer worth $6 million in annual revenues and Suncor 
              worth $19 million in annual revenues.
              In the UK, the Group has retained its significant national 
              contract with BT for a further seven years.
              In Germany, Eurest has won contracts with T-System (part of 
              Deutsche Telecom), Philip Morris and four previously self-operated 
              restaurants with DZ Bank.  The annual revenues of these new 
              contracts is €6 million.
              In Denmark, Eurest has won a four-year contract with TDC 
              (Tele-Danmark) for 11 restaurants with annual revenues of 
              £3 million.
            • Healthcare: In North America, Morrison has been awarded a new 
              10-year contract with the Children's Hospital in Washington D.C. 
              worth over $5 million in annual revenues and a 3-year contract 
              with Simpson House in Philadelphia and Simpson Meadows in 
              Downington worth $3 million in annual revenues.
              In the UK, Medirest has been awarded a new 5-year contract with 
              the Royal National Orthopaedic Hospital NHS Trust worth over 
              £2 million a year.
            • Education:   In North America, Chartwells have won a 5-year 
              contract with Morgan House at Baylor University worth $10 million 
              in annual revenues and has renewed its contracts with the 
              University of Nevada and the University of Wisconsin with combined 
              annual revenues of $12 million.
              In the UK, Scolarest has been awarded the contract for two new 
              schools in South Wales and six schools in Newcastle-upon-Tyne with 
              combined annual revenues of £1 million.

2.      Compass Group is the world's largest foodservice company employing over
        375,000 people in over 90 countries and with annual revenues in excess 
        of £10bn.  Compass Group provides foodservice for clients including 
        major employers, educational establishments, hospitals, leisure venues, 
        retail locations and at major airports and stations throughout the USA, 
        Europe, and developing markets in Asia and South America.  It operates 
        through sector-specific subsidiaries such as Eurest, the world's largest 
        specialist in providing foodservice to business and industry clients, 
        and Select Service Partner, the European market leader in foodservice at 
        airport restaurants and rail stations.  Further information on the Group 
        can be found at www.compass-group.com

3.      Travelodge & Little Chef disposal:  Compass Group announced its 
        agreement on the disposal of these two businesses on 18th December 2002.  
        Turnover and earnings before interest, taxes, depreciation and goodwill 
        amortisation for the three months to 30 December 2002 were £80m and 
        £20m, respectively.

4.      Remaining hotels:  The Group continues to hold two hotels for eventual
        disposal, The Strand Palace and Gatwick Meridien.


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