Trading Statement

Compass Group PLC
29 September 2003



Compass Trading Update: Continued Strong Performance Expected

September 29th 2003

Compass Group PLC will issue its Preliminary Results for the year ended 30
September 2003 on 2 December 2003. Prior to its close period, the Company today
issues the following scheduled trading update.

Michael J. Bailey, Chief Executive, said:
'At our Preliminary Results announcement in December 2002, we said that despite
the challenging global economic environment, Compass Group's unique business
model had and would continue to deliver. We are pleased to announce today that
we are on course to deliver our stated targets for 2003, with like for like
turnover growth of at least 6% and like for like margin improvement of 20 to 30
basis points. We are also on course to deliver a significant improvement in free
cash flow, generating around £400m.

2003 has been a challenging year. The effect of weak global economies has been
exacerbated by a decline in travel resulting from the war in Iraq and SARS. As
the year progressed, the macro economic backdrop continued to deteriorate in
continental Europe, as the economies of France and Germany slowed further.  The
situation in France was further impacted by industrial action over the summer.
However, with our geographic and sector diversity, the rapid and effective
response of our management teams and our continued focus on client retention, we
remain on track to achieve our goals.'

Turnover Growth

Full year like for like turnover growth is expected to be around 5% in the UK,
6% in Continental Europe/ROW, 7% in North America and at least 6% for the Group
as a whole. We expect our full year contract retention rate to be in line with
last year at 95%.

Margin Growth

The Group's like for like margin for the full year is expected to have moved
forward by between 20 and 30 basis points. Margin growth within the UK business
has benefited from the final tranche of the Granada merger synergies. Outside
the UK, we have continued to invest in the infrastructure we need to increase
purchasing synergies and labour efficiencies.

Profit Before Tax

Profit before tax for the full year remains in line with management
expectations.

Free Cash Flow

Free cash flow for the full year is likely to be around £400m. This would imply
growth of at least 15% from continuing activities, before exceptional items.

2003 Acquisition Spend

We expect aggregate spend on new acquisitions in 2003 to be approximately £200m.
The only significant acquisition this year was our investment in the majority
shareholding in Onama, in January 2003. We are pleased to report that the
integration of Onama is progressing well.

Share Buy Back

Further to our previously announced share buy back programme, we have already
returned £209m of cash to shareholders.

Outlook

Net growth in each of the divisions continues to be strong, reinforcing the
significant growth potential in contract foodservice, particularly in Healthcare
and Education, as the trend to outsourcing and further consolidation of the
industry continues. Despite uncertainty over the extent and timing of any
economic recovery, we enter a new financial year with confidence. Our strong
pipeline, together with the visibility we already have on 2004 turnover gives us
confidence in achieving our target of at least 6% like for like growth. We have
already secured over half of the turnover needed to deliver this. Furthermore,
the results of our continuing efforts to increase efficiencies across our
business should enable us to deliver like for like margin growth of 20 to 30
basis points in 2004. We also expect to deliver another year of strong free cash
flow.

NB: A selection of recent contract gains is included in the attached notes.

                                      Ends

Teleconference

An investors teleconference will start at 8.00am (BST) on Monday 29th September
2003.  To participate in the teleconference call dial: [phone],
password 'Compass Group'.

A replay of the call will be available for 5 working days (until 3 October) by
dialling [phone], passcode: 414364#

Enquiries:

Compass Group PLC
Michael J Bailey           Group Chief Executive                  01932 573000
Andrew Lynch               Group Finance Director                 01932 573000
Sarah Ellis                Director of Investor Relations         01932 573000

Brunswick Group Ltd
Timothy Grey                                                     020 7404 5959
Pamela Small                                                     020 7404 5959


Notes



1.                Compass Group is the world's largest foodservice company with
annual foodservice revenues in excess of £10bn. Compass Group has over 375,000
employees working in more than 90 countries around the world providing
foodservice and vending.  For more information visit www.compass-group.com

2.             New contracts signed recently include:

North America

Compass continued to win new contracts at a record pace.  Within education, a 5
year contract with Gallaudet University in Washington DC worth US$3.0m in annual
turnover, was secured by Bon Appetit, whilst the Kellogg Conference Center at
the university was awarded to Flik.  The Conference Center, also a 5 year
contract, is worth an additional $3.0m per annum.

The Healthcare sector has had significant wins, most notably the signing of
Fraser Healthcare in Vancouver, British Columbia, an 8 hospital, 14 outlet
retail offering worth $6.0 m in annual turnover.  Additionally, the Alta Bates
Medical Center in Berkeley, California, a 10 year contract valued at $2.0m per
annum and The Children's Hospital, in Oakland, California, a 5 year contract
worth $2.0m per annum.

The Business & Industry sector continued to post steady gains including Ebay, a
2 year contract with the San Jose, California-based company worth nearly 
US$3.5m per annum.

UK

In the Sports and Leisure division, we have been awarded a 7 year contract for
Reading Football Club, at a value of £4.0m in annual turnover, whilst our fine
dining business has been awarded a 9 year contract at BALTIC the centre for
contemporary art in Gateshead, worth £1.5m in annual turnover.

In Education, we have secured a 10 year contract for De Montfort University at
Leicester, worth £1.75m per annum, and a 5 year contract at Nottingham
University worth £1.0m per annum.

In Healthcare, we have won a 6 year contract with Southern Derbyshire Acute
Hospitals NHS Trust, worth £10.0 million annual turnover, to provide catering
and hotel services to Derbyshire Royal Infirmary and Derby City General
Hospital.

In Defence, we have been awarded a 10 year contract with the Army Training
Estate worth over £11.0m per annum.

Continental Europe and Rest of World

The pipeline across CE/ROW is strong and in our two newest territories, Japan
and Italy, we are pleased to announce that we have won a number of valuable
contracts including, in Japan, recent wins for staff catering at Nippon Life
Insurance company, the Tokyo branches of Hong Kong and Shanghai Bank, Glaxo
SmithKline and Sony as well as a number of contracts in the healthcare sector.

In Italy, we have renewed a contract with ENI, for 5 years, which is worth £6.0m
in annual revenues and signed a new contract with Banca D'Italia which is worth
£5.0m in annual revenues.


                      This information is provided by RNS
            The company news service from the London Stock Exchange