Trading Statement

Compass Group PLC
31 March 2005

                        Compass Group PLC Trading Update

31 March 2005

Compass Group PLC will issue its interim results for the six months ended 31
March 2005 on 18 May 2005. Prior to its close period, the Company today issues
the following scheduled trading update.

TRADING

Group
In the first six months of 2005 and for the full year 2005, like-for-like
turnover growth for the Group is expected to be at least 6%, with continuing
strong performance in North America. Turnover growth has been driven by new
business wins and a continued high level of contract retention.

UK
In the first six months and for the full year 2005, like-for-like turnover in
the UK is expected to be in line with our expectations, with solid growth in
both the Contract and Concession businesses.

We have recently commenced a programme of rationalising some of our back office
functions and have taken the decision to invest additional resource into our
operational and front line management teams. Both of these initiatives are
intended to underpin future profitable growth. Accordingly, there will be an
additional cost of approximately £5 million in the first six months and
approximately £9 million in the full year 2005.

Continental Europe & Rest of World
As reported in our AGM statement, the picture in Continental Europe & Rest of
World Division remains mixed. Asia, Australasia, Latin America and Spain
continue to perform well, while Northern Europe and in particular France,
Germany and the Netherlands remain very challenging.

Over the last few weeks, we have seen a shift in the volume and mix of our
Middle East business as some of our military contracts have been replaced by
peacekeeping activity, which is at a lower margin. Our current expectation is
that profit in the first six months will be approximately £4 million lower than
anticipated and approximately £15 million lower in the full year 2005. The
evolving nature of this part of the business makes it slightly more difficult to
forecast definitively.

North America
North America continues to perform well. In the full year 2005, profit is
expected to be in line with our previous expectations, but slightly weighted
towards the first six months of the year, reflecting the flow-through effect of
significant purchasing benefits that were realised in the second half of 2004.

Cash Flow
An increased emphasis on the management of cash within the business means that
our guidance for the full year 2005 remains unchanged at £350 million to £370
million on a constant currency basis (included in Appendix 2 is a list of the
key profit and loss translation rates for the year ending 30 September 2004).
The Group's business profile is such that cash flows are seasonal and free cash
flow will be weighted towards the second half, as in previous years.

Michael J. Bailey, Chief Executive, said:

'I see 2005 as an important year for the business. Our focus is firmly on
putting the necessary actions in place to deliver strong free cash flow
generation and improving return on capital employed over the medium term. Since
the start of the financial year we have undertaken a number of initiatives to
accelerate the delivery of this, including a recently commenced review of our
operational and cost structure.'

NOTES

A number of adjustments and reclassifications were made to full year 2004
numbers that will have an impact on the comparison of the six months ended 31
March 2005 with the six months ended 31 March 2004. Appendix 1 provides an
outline of the relevant pro-forma adjustments.

Today, the Group is announcing a number of important contract wins, the details
of which can be found in Appendix 3.

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.

Teleconference:
A teleconference for investors and analysts will start at 8.00am (BST) on
Thursday, 31 March 2005. To participate in the teleconference call dial: +44 (0)
20 7784 1004, password 'Compass Group'.

A replay of the call will be available for seven days by dialling +44 (0) 20
7784 1024 or [phone]. The passcode for both replay numbers is 4700112#.

Enquiries:
Compass Group PLC
Sarah Ellis
Director of Corporate Strategy and Investor Relations     [phone]

Brunswick
Simon Sporborg                                            [phone]

Appendix 1

Outline of pro-forma adjustments for the six months ended 31 March 2004

Turnover (£m)           UK            CE&ROW      NA           Fuel      Group
2004 reported           1,292         2,549       1,772        231       5,844
Currency (1)                -           (32)        (19)         -         (51)
Defence transfer (2)      (48)           48           -          -           -
2004 acquisitions (3)      15            54          28          -          97
2004 Pro-forma          1,259         2,619       1,781        231       5,890
                                                                                
           
Notes:
(1) Retranslation of 2004 reported numbers from 2004 half year average rates to
    2004 full year average rates.
(2) Transfer of defence business, previously managed from the UK, and now
    managed locally.
(3) Adjustment to include a full six month estimate in respect of acquisitions
    made in 2004.


Operating Profit (£m)              UK     CE&ROW   NA     Associates      Group
2004 reported (1)                 133      128    84               1       346
Currency (2)                        -       (2)   (1)              -        (3)
Defence transfer (3)              (11)      11     -               -         -
Trading update (4)                 (5)       -     -               -        (5)
Pensions charge (5)                (8)       -     -               -        (8)
Purchasing & cost allocation (6)   (9)       6     3               -         -
Accounting items (7)               (6)      (1)   (3)              -       (10)
2004 Pro-forma                     94      142    83               1       320

Notes:

(1) Based on continuing activities, including fuel and before goodwill
    amortisation.
(2) Retranslation of 2004 reported numbers from 2004 half year average rates to
    2004 full year average rates.
(3) Transfer of defence business, previously managed from the UK, and now
    managed locally.
(4) Estimated effect that the issues highlighted on 9th September 2004 had on H1
    2004.
(5) H1 2005 impact of additional pension costs in the UK, as highlighted on 30th
    September 2004.
(6) Reallocation between segments of purchasing income and central costs
    highlighted on 30th November 2004.
(7) H1 2005 impact of the accounting items, as highlighted on 30th November
    2004.

Appendix 2

Key profit and loss translation rates for the year ending 30 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 profit1 would be £89 million and £6 million respectively.
The approximate translation effect on Continental Europe & Rest of World 2004
turnover and operating profit1 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 & Rest
of World 2004 turnover and operating profit1 would be £93 million and £5 million
respectively.

Note: 1. Before goodwill amortisation.

Appendix 3

New contract gains and renewals announced today and previously released in the
financial year 2004/2005. Please note that contract gains/renewals announced
today are indicated with an '*'.

Business & Industry

• * Sweden - Saab AB Linkoping awarded Eurest a new three-year contract
    with annual turnover of £1.3 million.
• France - Bouygues Arc de Seine awarded Eurest a new three-year
  contract with annual turnover of £1.7 million.


Healthcare

• * Norway - Ulleval Patient Hospital awarded Medirest a new three-year
    contract with annual turnover of £2.1 million.
• * USA - Rest Haven Christian Services (IL) awarded Morrison Management
    Specialists a new five-year contract with annual turnover of 
    £4.1 million.
• UK - West Hertfordshire Hospitals NHS Trust renewed its contract
  with Medirest for a further five years with annual turnover of £8.6
  million.
• UK - Homerton University Hospital NHS Foundation Trust awarded
  Medirest a new five-year contract with annual turnover of £4.0 million.


Education

•* UK - Durham County Council renewed its contract with Scolarest for
   a further two years with annual turnover of £8.6 million.
• * UK - Millfield School (Somerset) renewed its contract with Scolarest
    for a further three years with annual turnover of £2.5 million.
• * USA - Olivet College (MI) awarded Chartwell's Higher Education a
    new ten-year contract with annual turnover of £0.8 million.
• USA - Norfolk State University (VA) awarded Thompson Hospitality
  a new five-year contract with annual turnover of £3.0 million.


Defence, Offshore & Remote Site

• * UK - Armada project (MoD PFI) awarded ESS Support Services
    Worldwide a new five-year contract with annual turnover of £4.0
    million.

• Norway - Statoil renewed its contract with ESS Offshore for a
  further five years with annual turnover of £11.6 million, covering
  Statfjord A, B and C platforms.

Sports & Leisure
• * Germany - SAP Arena (Mannheim) awarded Eurest Sports & Food a new
    two-year contract with annual turnover of £2.7 million.
• * Japan - Fukuoka Mutual Aid Association awarded Seiyo Food Systems a
    new five-year contract with annual turnover of £2.3 million.
• * Spain - AVE-Renfe renewed its contract with Railgourmet for a further
    four years with annual turnover of £24.1 million.
• * UK - Hatfield House awarded Leith's a new ten-year contract with
    annual turnover of £1.0 million.
• Japan - Japan Post awarded Seiyo Food Systems a new three-year
    contract with annual turnover of £18.3 million.
• USA - University Place at Indiana University-Purdue University
    Indianapolis (IN) awarded Flik Conference Center Management a new
    ten-year contract with annual turnover of £8.5 million.

Vending

• * USA - Cardone Industries, Inc. awarded Vendlink a new one-year
    contract with annual turnover of £0.5 million.





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