Trading Update

Compass Group PLC
5 October 2001


                                                                5 October 2001


                        Compass Group Trading Update

                 Compass Group announces strong performance


Compass Group will issue its preliminary results on 11 December 2001 for the
year to 30 September 2001.  Prior to its close period, the Company today
issues the following trading update.

Compass Group is the world's largest foodservice company with proforma annual
revenues in excess of £9bn, employing more than 270,000 people worldwide in
over 90 countries. The Group's strategy continues to be one of achieving
strong growth in the £200bn foodservice market through the development of its
sector-focused businesses and the use of its unique portfolio of foodservice
brands, growing both organically and through strategic infill acquisitions.

The Group's three geographic regions of the UK, Continental Europe & the Rest
of the World, and North America have continued to grow their like for like
sales in the second half of the year.  Full year like for like sales growth
for the UK division is expected to be 6%.  This growth rate has been achieved
despite the impact of the foot and mouth outbreak and the rail disruption
earlier in the year which are estimated to have held back sales growth by 1%.
Like for like sales in Continental Europe & Rest of the World and in North
America have been particularly strong, maintaining the 9% and 8% growth rates
respectively achieved in the first half.

In the second half, business retention rates in the group continue in line
with the 95% rate achieved for the last financial year.

Profits before tax for the full year remain in line with management's
expectations apart from a small reduction as a result of the tragic events of
11 September 2001 detailed below.  The results have benefited from like for
like sales and margin growth.



Impact of Events of 11 September 2001

The Company was relieved to confirm that all of its employees working in Lower
Manhattan and Washington were safe following the tragic events on 11 September
2001.  During September Compass Group companies have supported the rescue and
recovery operation in New York.  Canteen Vending partnered with Coke and Pepsi
to provide trucks to take sodas to hospitals and blood banks.  Restaurant
Associates worked with Mayor Rudolph Giuliani's office to provide meals  to
rescue workers and Compass Group companies co-ordinated the provision of meals
and snacks, for the 26th St Armoury Crisis Center.  A total of over 120,000
meals have been provided in support of this humanitarian effort.

In New York seven sites operated by the Group were destroyed, two of these
will re-open early in 2002, with a further fourteen temporarily closed.  No
Compass Group accounts are in the affected area in Washington.  Compass Group
announced in August 2001 the award of the foodservice contract at The
Pentagon.  This contract is not yet operational.

Compass Group anticipates that costs associated with disruption to trading,
primarily in New York, but also with other specific related consequences such
as the postponement of the Ryder Cup, and the costs of the humanitarian
support, will have a profit before interest and tax impact of some £5m in the
2001 financial year.

The Group believes it is not yet possible to properly assess the impact of the
tragic events of 11 September 2001 on the economies within which Compass Group
operates and any subsequent actions or implications of that day on the results
for 2002 and beyond.  The Group is, however, well positioned to withstand any
economic downturns that may result, having a well spread business by
geography, client and sector.  The markets in which Compass Group operate
offer significant growth potential as the trends to outsourcing and the
further consolidation of the industry continue.  Compass Group is in a very
strong position to take advantage of these trends given its market leading
position and strong balance sheet.

The table below provides further detail of the sector and geographic spread of
the Group's business.  It illustrates significant business in fast growing,
non-cyclical sectors and relatively little exposure to the North American
concession market.

2001 Proforma Sales: Sector Analysis

                                   Total Group              North America

                                        %                         %

B&I                                     37                       10
Defence, Remote & Off-shore              5                        1
Vending                                 11                        6
Healthcare                              12                        7
Education                                9                        6
Roadside                                11                        0
Concessions:
                Inflight                 1                        0
                Airport Restaurants      3                        0
                Railways                 3                        0
                Retail & Leisure         5                        3
                Sports & Events          3                        2
Total                                  100                       35

Note: North America proforma sales as a percentage of total Group sales



New Business Growth

New business gains in each of the divisions continue to be strong - major new
contracts recently signed include:

UK & Ireland

The announcement today that Eurest has gained the contract to provide
foodservices for the Inland Revenue at 20 sites in the UK.  The contract is
worth £17m over 5 years.

Recent contract gains include:

Lloyds TSB: a £24m three year contract for an additional thirteen sites;

Kingston Hospital NHS Trust a £9m three year contract;

Hertfordshire Constabulary: a £4.3m seven year contract

These new contract awards build upon major new gains announced in the year
including Sainsbury's (£40m) and Royal Bank of Scotland (£28m)

 North America

Compass Group recently announced the appointment of Eurest to provide
Motorola's foodservice in North America.  Under the agreement Eurest will
manage foodservice operations at 37 Motorola sites in North America and Mexico
serving 67,000 meals daily.  Motorola's sites in North America were previously
self operated.  This is in addition to the existing contracts to provide
foodservice for Motorola in Europe, China, Argentina and Australia.

In addition the Company today announces that Chartwells has been awarded the £
4.6m foodservice contract for the Loop and Lincoln Park campuses of DePaul
University in Chicago for three years.  Brands on site will include Ritazza,
Au Bon Pain and Krispy Kreme outlets.

Continental Europe & the Rest of the World

Denmark: in July 2001, Medirest gained a £6.7m  contract with Frederiksborg
County the largest ever awarded in Denmark.

Australia: the Group is delighted to announce that it has been awarded the £
11.8m, three year contract to operate facilities at the accommodation village
for the Kellogg Joint Venture workforce at the North West Shelf Project in
Karratha, Western Australia.

UK Roadside

The UK Roadside business continues to perform strongly and growth in the
second half has continued to be in line with that for the rest of the division
with both the MSA business and Little Chef growing well.   The Group sees a
significant opportunity to improve the customer experience at MSA sites in the
UK with its strategy of improving facilities, and bringing in new foodservice
options.   Following the launch in May 2001, all of the UK Motorway Services
sites were rebranded under the Moto name by the end of July.   Customer
research conducted at the end of August revealed significant improvements in
customer perceptions of the sites and prompted brand awareness is already at
41%, with 67% of customers rating their experience positively.

The continued introduction of the Compass Group brands, Upper Crust and
Ritazza, has been well received and there are now a total of  160 outlets
across the motorway estate.  The Stopgap brand is now being introduced to Moto
sites and the first store will open at Toddington South in the middle of this
month.

Travelodge has continued its strong growth in the second half with a total of
574 new rooms opened during the past six months and continued increases in
REVPAR.

UK: Integration and Synergies

Retention rates in the combined UK business have continued to be strong in the
second half of the year.

Purchasing synergies as a result of the merger continue to be achieved through
price harmonisation and discounts for bulk purchasing with savings in line
with the £20m projected at the half year.  Purchasing best practice, as
established in the UK, is being extended across the Group which is anticipated
to continue to drive margin gains across the North American and Continental
Europe & ROW Divisions.

Transactions: Infill Acquisitions & Disposals

Following the announcement by the Group in October 2000 of the proposed sale
of the Forte Hotels division, the sale process for the major brands was
concluded in May 2001 with the announcement of the sale of Le Meridien.  To
date the Group has already received, in cash, some £3bn of the gross proceeds
of the sale.

Compass Group has indicated its intention to reinvest the proceeds from these
disposals into its core foodservice market.  During the year the Group has
made a number of strategic acquisitions for a total consideration of £1.4bn
paid in cash.  Key strategic infill acquisitions included Morrison and
Selecta, completed on 6 April 2001 and 30 May 2001 respectively.  In the
second half further acquisitions included:

Vendepac

Vendepac is the UK market leader in vending, with a 9% share of the market,
derived from 20,000 food and beverage machines.  This acquisition fills an
important gap in Compass Group's vending capability and joins sister companies
Canteen Vending and Selecta, the largest vending companies in North America
and Europe respectively.

Crothall

Crothall Services Group is a US healthcare services company specialising in
housekeeping, portering and laundry services. The US healthcare market is
almost unique in increasingly requesting a 'one-stop' service combining
foodservice with other facilities management services.

This acquisition, along with that of Morrison, will help build the Group's
strength and presence in this strategically important market.

Financial Position

Compass Group has a strong balance sheet and will continue to seek
opportunities to deliver shareholder value through investment in the
foodservice market. The opening net debt position for the year was £3.7bn and
during the year significant cash flows include some £3bn  received from the
sale of Forte Hotels and some £1.4bn  of expenditure on acquisitions.

Outlook

The Group remains committed to branding, international expansion and market
segmentation in foodservice, with a focus on organic growth, margin
improvement and return on capital employed.

The characteristics of the marketplace in which the Group operates and its
balanced portfolio of business across the world and across different sectors
indicates its recession resilient nature.  The management look forward with
confidence to the future growth of the business.  The company is well-placed
to respond to recessionary pressures through its purchasing power, flexibility
in cost structure and proactive approach to protecting its margin.

Francis Mackay, Chairman, said 'Foodservice offers significant growth
opportunities as only 30% of the £200bn marketplace in which we operate is
contracted out.  As organisations look to improve their cost-effectiveness so
we can offer them an effective route to maintain or improve their quality of
service whilst often significantly reducing costs. '



Michael J Bailey, Chief Executive, commented 'I am delighted with the hard
work and commitment shown by all of our staff during the year - and
particularly those working in North America during the last month.  We expect
to demonstrate continued strong performance this year and believe we are
well-placed for future growth.'


Teleconference



An investors teleconference including a Webcast of the presentation slides
will start at 9.00am (BST) on Friday 5 October 2001.

To participate in the teleconference call dial:  [phone] or +44
(0) 20 8240 8241

To access the web presentation: http://www.compass-group.com/
investor-relations.cfm

Enquiries:

Compass Group PLC                               Telephone:  [phone]
Michael J Bailey, Chief Executive
Andrew Lynch, Finance Director

Hudson Sandler                                  Telephone:  [phone]
Nick Lyon / Wendy Baker