AGM and Trading Update

RNS Number : 9662N

Compass Group PLC

04 February 2016

 

4 February 2016                                                                                                           

AGM and Trading Update

Compass Group PLC is issuing a trading update ahead of its Annual General Meeting to be held at 12:00 noon today in the Live Room, Rugby Football Union, Rugby House, Twickenham, Middlesex TW2 7BA.  At this meeting, shareholders will be provided with the following update on the Group's performance since 30 September 2015.

Group

Compass had a strong first quarter.  Organic revenue grew 5.9% for the first three months to 31 December 2015.  Our focus on organic growth continues to drive good levels of new business and high retention rates. Like for like revenues increased, driven by modest pricing and some volume improvement.

We continue to drive operating efficiencies around the business, which we are partly reinvesting in the growth opportunities we see across the Group.  The previously announced restructuring programme in the Offshore & Remote sector and in some emerging markets is progressing well and is on track to deliver the expected savings. 

Regions

North America grew organic revenues by 7.9%, driven by growth in technology within Business & Industry, new wins in Healthcare & Senior Living, and a good performance in our Sports & Leisure business.  In Europe, organic revenue grew by 3.6%, driven by a continuation of the trends seen in the past twelve months.  New business wins have been strong, particularly in the UK and the Mediterranean countries, retention is good and like for like revenues have stabilised.  Organic revenue in the Rest of World region was up 3.6%, with robust growth in Spanish speaking Latin America partly offset by the expected weakness in our commodity related business and a challenging environment in some emerging markets. 

Currency

Currency movements, compared to the same quarter last year, had a negative translation impact on revenues and profit in the quarter of £116 million and £7 million respectively.  If current spot rates were to continue for the remainder of the year, foreign exchange translation would positively impact revenue by £253 million and operating profit by £24 million.

Outlook

Our outlook for 2016 remains positive.  Growth in North America is strong, Europe is improving, and we are managing the challenges in the Rest of World region.  We continue to focus on driving efficiencies throughout the business and our margin expectations are unchanged.  In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue and margin growth.

 

Compass will hold a conference call for investors and analysts today 8:30a.m. (UK time).

Participants dial-in numbers

UK Toll Number:                     0203 139 4830

UK Toll-Free Number:            0808 2370 030

US Toll Number:                     [phone]

US Toll-Free Number:            [phone]

Participant PIN Code:             53502831 #

A replay service will be available until 11^th February 2016

UK Toll Number:                     0203 426 2807           

UK Toll-Free Number:            0808 2370 026

US Toll-Free Number:            [phone]

Pin Code:                                667389 #        

Enquiries:                  Sandra Moura / Agatha Donnelly                    [phone]

Media:                         Clare Hunt                                                       [phone]

Website:                     www.compass-group.com                            

 

Note to Editors

a)    Compass Group PLC is one of the world's leading foodservice and support services companies which generated annual revenues of £18 billion in the year to 30 September 2015. It operates in over 50 countries, employs over 500,000 people and serves over 5 billion meals every year. The Company specialises in providing food and a range of support services across the core sectors of Business & Industry, Healthcare & Seniors, Education, Defence, Offshore & Remote, Sports & Leisure and Vending with an established brand portfolio.

b)    MAP (Management and Performance) is a simple, but clearly defined Group operating framework. MAP focuses on five key value drivers, enabling the businesses to deliver disciplined, profitable growth with the focus more on organic growth and like for like growth.

The five key value drivers are:

MAP 1: Client sales and marketing

MAP 2: Consumer sales and marketing

MAP 3: Cost of food

MAP 4: Unit costs

MAP 5: Above unit overheads

c)   Organic revenue growth, a term used throughout the announcement, is calculated by adjusting for acquisitions (excluding current period acquisitions and including a full period in respect of prior period acquisitions), disposals (excluded from both periods) and exchange rate movements (translating the prior period at current period exchange rates).

d)    Forward looking statements

Certain information included in this announcement is forward-looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of expected future revenues, financing plans, expected expenditures and divestments, risks associated with changes in economic conditions, the strength of the foodservice and support services markets in the jurisdictions in which the Group operates, fluctuations in food and other product costs and prices and changes in exchange and interest rates. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as "believes", "estimates", "anticipates", "expects", "forecasts", "intends", "plans", "projects", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are not guarantees of future performance. All forward-looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

e)   A copy of this release, together with all other recent announcements and presentations can be found on Compass Group's website at www.compass-group.com.

 

END

 

 

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