AGM Statement

Compass Group PLC
14 February 2005


14th February 2005


Compass Group PLC
Chairman's AGM Statement


Compass Group holds its AGM today at the Queen Elizabeth II Centre, London at
11.00am. At this meeting Sir Francis Mackay, Chairman of Compass Group PLC, will
provide shareholders with the following update:


Current Trading and Outlook
In the first four months of 2005, turnover growth has remained strong in North
America and has developed in line with our expectations in the UK. The picture
in Continental Europe and Rest of World division remains mixed. The Middle East,
Asia/Australasia and Latin America continue to perform well, while Northern
Europe and in particular, France, Germany and the Netherlands are very
challenging. For the Group as a whole, we continue to expect that we will
deliver at least 6% like-for-like turnover growth in the current year.


The trends in turnover growth in the first four months of the financial year
2005 are broadly similar to those experienced in the second half of 2004. New
business wins have been driven by the continued outsourcing of foodservice in
the Healthcare, Education and Defence, Offshore and Remote Site sectors,
although as we expected, the rate of growth in the Defence, Offshore and Remote
Site sector has slowed. Today we are announcing a number of important contract
wins, the details of which can be found in Appendix 1.


Since the start of the new financial year, our focus has been on putting the
necessary actions in place to deliver strong free cash flow and improving return
on capital employed over the medium term. At the interim results in May, we will
provide further guidance on our longer-range objectives for the Group. Our
guidance for free cash flow in 2005 remains unchanged at £350m to £370m on a
constant currency basis. We have included a list of the key profit and loss
translation rates for the year ending 30th September 2004 in Appendix 2.


Non Executive Directors
With effect from today, and after eleven years with the Group, Mr Denis Cassidy
will retire from the board as non-executive director. We would like to take this
opportunity to thank him for his invaluable contribution to the development of
the Group and wish him well in his retirement.


2005 Calendar
In advance of announcing the interim results on 18 May 2005, the Group will
provide its customary pre-close trading update at 7:00 a.m. on Thursday 31 March
2005.


ENDS

Enquiries:

Sarah Ellis                        Compass Group PLC         01932 573000
Simon Sporborg / Pamela Small      Brunswick                 020 7404 5959


Note to Editors


Compass Group PLC is the world's leading foodservice company providing food,
vending and related services to clients and customers in the workplace, at
school and colleges, hospitals, on the move, at leisure and in defence, offshore
and remote locations. Compass Group has annual revenues of £12 billion and
employs 400,000 people in over 90 countries.

Appendix 1

Today, we are announcing a number of significant contract wins and renewals
across the business. In North America, University Place at Indiana University-
Purdue University Indianapolis (IN) awarded Flik Conference Center Management a
new ten-year contract with annual turnover of £8.6 million. Norfolk State
University (VA) awarded Thompson Hospitality a new five-year contract with
annual turnover of £3.0 million.


In the UK, West Hertfordshire Hospitals NHS Trust renewed its contract with
Medirest for a further five years with annual turnover of £8.6 million. Medirest
was also awarded a new five-year contract with Homerton University Hospital NHS
Foundation Trust with annual turnover of £4.0 million.


In Continental Europe and Rest of World, Statoil renewed its contract with ESS
Offshore for a further five years with annual turnover of £11.5 million
(Statfjord A, B & C platforms, North Sea). In France, Bouygues Arc de Seine
awarded Eurest a new three-year contract with annual turnover of £1.7 million
and in Japan, Japan Post awarded Seiyo Food Systems a new three-year contract
with annual turnover of £18.3 million.


Appendix 2

Key profit and loss translation rates for the year ending 30th September 2004


1 pound sterling - US $1.79
1 pound sterling - Euro €1.47


Approximate translation rate effect of a movement in these key exchange rates


For every 5-cent movement in the US$ (from the 2004 profit and loss exchange
rate of $1.79), the approximate translation effect on North America 2004
turnover and operating profit (1) would be £89 million and £6 million
respectively. The approximate translation effect on Continental Europe and Rest
of World 2004 turnover and operating profit (1) would be £8 million and £2
million respectively.


For every 5-cent movement in the Euro (from the 2004 profit and loss exchange
rate of €1.47), the approximate translation effect on Continental Europe and
Rest of World 2004 turnover and operating profit (1) would be £93 million and £5
million respectively.


Note: (1). Before goodwill amortisation.





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