Trading Statement

Compass Group PLC
27 March 2008


                                    
                       Compass Group PLC: Trading update


27 March 2008


This statement updates investors on the Group's progress in the current year,
ahead of the announcement on 14 May 2008 of its half year results for the six
months to 31 March 2008.


Group

Trading in the first five months of the current financial year has been ahead of
our expectations and the strong performance seen in the first three months as
detailed in the interim management statement on 8 February 2008 has continued
into the second quarter. We expect organic revenue growth to be just over 5% for
the half year and, with the MAP (Management and Performance)(1) programme more
deeply embedded throughout the whole organisation, expect to deliver around 50
basis points of margin improvement compared with the same period last year. Cash
flow conversion remains very good with ongoing success in driving working
capital improvements and careful control of capital expenditure.


We are continuing to be successful in our management of the impact of input cost
inflation through rigorous application of the MAP framework, as reflected in the
continued improvement in margins, particularly in the key areas of purchasing
and supply chain efficiencies, unit cost efficiencies (including menu planning)
and both client and consumer pricing.


Overall, we expect a favourable impact of around £6 million on operating profit
(2) from the movement of our key currencies for the six months to 31 March 2008
compared with the same period last year(3).


North America

In North America trading remains strong and we again expect good organic revenue
growth for the half year of around 7%. Positive like for like revenue growth
together with good management of input cost inflation and ongoing operating
efficiencies throughout the businesses are expected to deliver further margin
improvements of 50 to 60 basis points.


Continental Europe

The organic revenue growth rate in Continental Europe continues to improve and
for the half year is expected to be around 5%, with good performances in Spain,
Turkey, Eastern Europe and the Nordic countries. We are achieving good
conversion of incremental revenues through to operating profit and expect to see
margin growth of 60 to 70 basis points.



UK

In the UK, as anticipated, we expect revenues and margins to be broadly in line
with last year. The Education sector continues to make solid progress and the
Business and Industry and Healthcare sectors are performing in line with the
same period last year. We are making good progress with unit labour and overhead
efficiency plans and food cost is being well managed through supply chain
efficiencies, menu planning and price increases.


Rest of the World

We expect to see around 9% organic revenue growth for the half year in the Rest
of the World, driven by positive trends in South America, UAE and our remote
site businesses. Margins are expected to show an improvement of 80 to 90 basis
points. Our Japanese business continues to make good progress.


Brazil Acquisition

The Group has now completed the acquisition of the remaining 50% stake in GR
S.A., our Brazilian contract catering business, for a total cash consideration
of 305 million Brazilian Reals (£90 million). The operational and management
integration of the business into the Group is proceeding well and we are
optimistic about the growth opportunities.


Share Buy Back Programme

The Group's £1 billion share buy back programme is now complete. Between 1
October 2007 and 19 March 2008, the Group repurchased for cancellation 89
million ordinary shares for a total consideration of £280 million. This brings
the total number of shares repurchased since the share buy back programme began
in 2006 to 328 million for a total consideration of £1 billion.


Full Year Outlook

We have had an encouraging start to the year with a continuation of the positive
trading momentum seen over the last 18 months. Looking forward, a combination of
good market growth from a diversified geographical and sector base, improving
working capital management, capital expenditure control and clearly identified
cost efficiencies, leaves us confident that this trend will continue through the
second half of the year.


ENDS


Enquiries:


Analysts                   Andrew Martin                01932 573000
Media                      Chris King                   01932 573116


Website: www.compass-group.com


Note to Editors:


Compass Group is the world's leading foodservice company. We specialise in
providing food, vending and related services to our clients' premises and we
generated annual revenues of over £10 billion in the year to 30 September 2007.
The company operates across the following core sectors of Business and Industry
(B&I), Defence, Offshore and Remote, Education, Healthcare, Sports and Leisure
(S&L) and Vending with an established brand portfolio. For more information
visit www.compass-group.com.


This Press Release contains forward looking statements within the meaning of
Section 27A of the Securities Act 1933, as amended, and Section 21E of the
Securities Exchange Act 1934, as amended. These statements are subject to a
number of risks and uncertainties and actual results and events could differ
materially from those currently being anticipated as reflected in such forward
looking statements. The terms 'expect', 'should be', 'will be', 'is likely to'
and similar expressions identify forward looking statements. Factors which may
cause future outcomes to differ from those foreseen in forward looking
statements include, but are not limited to: general economic conditions and
business conditions in Compass Group's markets; exchange rate fluctuations;
customers' and clients' acceptance of its products and services; the actions of
competitors; and legislative, fiscal and regulatory developments.


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



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


The five key value drivers:

     -          MAP 1: Client Sales and Marketing
     -          MAP 2: Consumer Sales and Marketing
     -          MAP 3: Food Cost
     -          MAP 4: Unit Costs
     -          MAP 5: Above Unit Overheads

(2) Operating profit, a term used throughout this announcement, includes share
    of profit of associates and is wholly consistent with the presentation in the
    Group's 2007 Annual Report and Accounts.


(3) The main exchange rates used to translate the results of subsidiaries
    reporting in foreign currency were:


Average exchange rate for the        Five months to          Six months to
                                   29 February 2008          31 March 2007 
    US Dollar                            2.02                     1.95
    Euro                                 1.38                     1.49






                      This information is provided by RNS
            The company news service from the London Stock Exchange