Trading Statement

Compass Group PLC
27 September 2006


27 September 2006


                       Compass Group PLC: Trading Update


This statement updates investors on the Group's progress in the current year,
ahead of the announcement on 29 November 2006 of its full year results to 30
September 2006.


Trading

The Group has continued to trade in line with expectations for the year to 30
September 2006 and our target of £50 million of overhead savings has been
achieved. As we strengthen our financial and operational disciplines and address
lower margin contracts, we continue to expect to see a lower level of overall
revenue growth in the near term.


Trading in the North American business remains strong across all sectors,
particularly within Business & Industry, Sports & Leisure, Healthcare and
Education. Levels of client retention have been high and the Group expects high
single digit underlying revenue growth for the second half of 2006, with second
half operating margins in line with last year.


In the UK, the business is showing positive signs of stabilising and the Group
remains confident it will deliver a similar level of revenue and overall
profitability to the prior year, as indicated in our interim results
announcement. Progress has been made in the Education sector where the Group has
been heavily involved in the drive to deliver meals to the Government's new
nutritional standards.


Overall, Continental Europe has performed in line with our previous guidance.
Second half revenues are expected to be in line with the prior year and the
Group still anticipates a similar level of overall profitability and margin to
2005. We are continuing to see good trading in Spain, Eastern Europe,
Scandinavia and Germany, whilst trading conditions remain difficult in Italy.


In the Rest of the World businesses, the Group has successfully concluded the
exit from its Middle East military operations. The ongoing businesses continue
to perform well, particularly in Australia and Latin America, with full year
profitability expected to be slightly ahead of last year.


Compass share buyback progress

Following the completion of the sale of its Travel Concessions business, Select
Service Partner (SSP) in June 2006, the Group has commenced the announced £500
million share buyback programme. As at 26 September 2006, 54.5 million shares
have been repurchased at a cost of £139.6 million. Compass Group announces today
that it has entered into an irrevocable and non-discretionary arrangement with
Merrill Lynch International, to repurchase on its behalf and within certain
pre-set parameters, ordinary shares in the Company for cancellation during the
period commencing on 2 October 2006 and ending on 24 November 2006. This
arrangement is in accordance with chapter 12 of the Listing Rules and the
Company's general authority to repurchase shares.


ENDS





Enquiries:

Andrew Martin

Compass Group PLC 01932 573000


Website

www.compass-group.com




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