Trading Statement

Compass Group PLC
26 March 2004




                        Compass Group PLC Trading Update
26th March 2004

Compass Group PLC will issue its Interim Results for the six months ended 31
March 2004 on 19 May 2004. Prior to its close period, the Company today issues
the following scheduled trading update.

Michael J. Bailey, Chief Executive, said:
'2004 has started well, despite the fact that in many parts of the world the
economic backdrop has remained challenging. Our new business growth has been
strong and the pipeline for the year remains encouraging. We enter the second
half of our financial year with confidence that we will be able to reach our
targets. We are now expecting to deliver like-for-like turnover growth of 7%; an
improvement in the like-for-like margin of 20 basis points; strong free cash
flow and improving return on capital employed.'

Turnover Growth

Full year like-for-like turnover growth is expected to be around 5% in the UK,
at least 7% in North America, Continental Europe and the rest of the world and
7% for the Group as a whole. The strong growth in turnover is being driven by
new business wins and the continued high level of contract retention, which in
2004 is expected to be in line with last year, at 95%.

Since reporting the preliminary results in December 2003, there has been no
significant change in throughput across the Group. In Business and Industry
there are some limited signs of a pick up in client catering spend (such as
special functions and parties), however, the trend is not consistent across the
different economies in which Compass Group operates. Furthermore, at this point
there is little evidence of any real increase in the number of customers at
clients' sites.

Margin Growth

In 2004 the UK margin is expected to be at a similar level to that reported in
2003. In North America, Continental Europe and the rest of the world, the
like-for-like margin is expected to move forward by 30 basis points.

Over the medium term, the Group's like-for-like margin is expected to move
forward by between 20 and 30 basis points annually.

Free Cash Flow

Free cash flow in 2004 is expected to be in line with the Group's expectations.
The Group's business profile is such that cash flows are seasonal and free cash
flow will be weighted towards the second half as in previous years.

Currency

The recent weakness in the US dollar will impact the rate at which US dollar
denominated earnings, which are derived from North America and certain other
countries around the world, are translated. The Group, however, matches its
principal projected cash flows to same currency borrowings and therefore has an
effective foreign currency hedge in real economic terms.


Organic Growth

The Group's strategy is focussed on driving organic growth and improving return
on capital employed, whilst making value-creating, small infill acquisitions
where appropriate. In the first half of 2004, we have made a number of small
infill acquisitions, with an aggregate value of around £50 million. We currently
expect expenditure on infill acquisitions in 2004 to be below the £215 million
invested in 2003.

Outlook

As we enter the second half of 2004, the prospects for the Group are
encouraging. Net growth in all divisions remains strong, reinforcing the
significant potential in contract food service, with the fastest growing sectors
continuing to be Healthcare, Education, and Defence, Offshore and Remote Site
business.

Despite the continued uncertainty over the extent and timing of economic
recovery and in particular the rate of new job growth, the strong new business
pipeline, together with the visibility that already exists on 2004 turnover and
margin progression, strong free cash flow and improving return on capital
employed, enables the Group to look forward to the rest of the year with
confidence.

NB: A selection of recent contract gains, renewals and extensions is included in
the attached notes.

Teleconference:

A teleconference for investors and analysts will start at 8.00am (GMT) on Friday
26th March 2004. To participate in the teleconference call dial: +44 (0) 1452
561 263, password 'Compass Group'.

A replay of the call will be available for seven days by dialling +44 (0) 1452
550 000, passcode 1156606#.

Enquiries:
Compass Group PLC
Sarah Ellis, Director of Investor Relations [phone]

Brunswick
Timothy Grey / Pamela Small [phone]


Notes:

1. Compass Group is the world's largest foodservice company with annual
   foodservice revenues in excess of £11 billion. Compass Group has over 400,000
   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 gains and renewals signed recently and announced today include:


UK

Retail & Travel

• First Great Western awarded Rail Gourmet UK a new contract to provide a
  full rail catering logistics service, which commenced 27th March 2004, and
  is worth annual turnover of £6 million. The contract will run to the end of
  First Great Western's current franchise in March 2006.

Sports & Leisure

• London Zoo awarded All Leisure a new three-year retail catering
  contract with annual turnover of £2 million. This is in addition to the
  three-year extension of All Leisure's existing contract at the Zoo, with annual
  turnover of £1.3 million, to provide event catering and hospitality services.

Education

• Old Swinford Hospital School in Stourbridge awarded Scolarest a new
  three-year contract with annual turnover of £600,000 to provide catering and
  hospitality services.

Healthcare

• South West Yorkshire Mental Health NHS Trust awarded Medirest a new
  five-year contract with annual turnover of £600,000 for patient, staff and
  visitor catering.

Business & Industry

• Perkins Engines, a subsidiary of Caterpillar, awarded Eurest a new
  five-year contract with annual turnover £850,000, to provide catering services
  to 3,000 employees at their 130 acre site in Peterborough.


NORTH AMERICA

Healthcare

• Jewish Hospital Medical Center awarded Morrison Management Services a
  new five-year contract with annual turnover of £1.5 million.

• St. Michael's Hospital, Toronto, awarded Crothall Services Canada a new
  five-year contract with annual turnover of £600,000.

Business & Industry

• 2005 US Open Golf Championship awarded Restaurant Associates a new
  one-year contract worth £2.7 million.


CONTINENTAL EUROPE AND REST OF THE WORLD

Sports & Leisure

• Japan - Kasadojima Heights guesthouse awarded Seiyo Foods Systems Kyushu
  a new five-year contract with annual turnover of £1.6 million.


Healthcare

• Germany - HELIOS Kliniken, Wuppertal, awarded CCS Clinic Catering
  service a new contract with annual turnover of £1.5 million.

• Spain - Parc Sanitari Pere Virgili awarded Medirest a new ten-year
  contract with annual turnover of £600,000 to provide patient and staff feeding
  as well as vending.


Business & Industry

• France - Areva awarded Eurest a new five-year contract with annual
  turnover of £2.4 million.

• Japan - Nippon Telegraph and Telephone East Corp. awarded Seiyo Food
  Systems a new one-year contract worth £600,000.

• Sweden - Kraft Foods awarded Eurest a new three-year contract with
  annual turnover of £500,000 for staff feeding services.


Defence, Offshore & Remote Service

• Nigeria - Chevron Nigeria Limited / Texaco Operating Company Nigeria
  awarded ESS Support Services Worldwide a new five-year contract with annual
  turnover of £10 million.

• Scandinavia - ConocoPhillips Scandinavia AS renewed its six-year
  contract with ESS Offshore AS with annual turnover of £12 million.


3. Previously announced contract gains or renewals for the 2004 financial year
   include:

UK

Healthcare

• Nottinghamshire Healthcare NHS Trust extended its contract with Medirest
  for a further three years with annual turnover of £3 million.


Business & Industry

• National Grid Transco awarded Eurest a new three contract with annual
  turnover of £3 million.


NORTH AMERICA

Business & Industry

• New York's Strathmore museum awarded Restaurant Associates a new
  contract for ten years with annual turnover of £3 million.


CONTINENTAL EUROPE AND REST OF THE WORLD

Retail & Travel

• Italy - the Ministry of Defence has awarded Onama a new contract for
  three years with annual turnover of £7 million.


Healthcare

• France - the Public Hospital System of Marseille (APHM) awarded
  Medirest a new contract for three years with annual turnover of £6 million.


Business & Industry

• Royal Philips Electronics extended its Global Foodservice Agreement with
  Compass Group for a further 10 years.

• France - Les Chantiers de l'Atlantique awarded Eurest a new five-year
  contract with annual turnover of £3 million.

• Chile - Vinci Construction Grand Projects (VCGP) awarded Compass Group a
  twenty-year contract with annual turnover of over £6 million to provide
  services to the Administration of Corrections, Chile.


Defence, Offshore & Remote Service

• ESS Support Services Worldwide was awarded two contracts with the
  United Nations. These two contracts have a combined annual turnover of £14
  million.




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