Trading Statement

Compass Group PLC
28 March 2006



28 March 2006

                        Compass Group PLC: Trading Update


This statement updates investors on the Group's progress in the current year,
ahead of the announcement of its interim results to 31 March 2006 on 16 May
2006.


Trading

Further to the Chairman's statement at the AGM in February 2006, we anticipate
the Group will trade in line with expectations for the six months to 31 March
2006. The Group continues to see good levels of new business and contract
retention. The focus remains on improving operating and capital efficiency and
driving free cash flow. In achieving the targeted £50m of overhead savings, the
majority of the restructuring costs will be incurred in the first half of 2006,
with the benefits more weighted towards the second half.

Trading in North America remains strong across all sectors, and has been driven
by new business wins and high contract retention levels.

In the UK, trading is developing in line with our expectations across the main
business sectors. As previously outlined, the State Education sector is still
the most challenging as we continue to work with our clients to manage the
transition to healthier eating. Our priority remains the improvement of the
overall performance of the UK contract business, particularly through
renegotiating or exiting poorer performing contracts.

In Continental Europe, the macro-economic environment remains challenging with
turnover growth currently at similar levels to 2005. Against this backdrop, our
emphasis remains on cost-management, including capital expenditure and contract
retention.

In the Rest of the World, our ongoing businesses, particularly in Australasia
and South America, continue to trade strongly driven by new business wins and
improved throughput. As previously indicated, the scaling-back of our Middle
East military business is on track to be completed by mid-2006.


Sale of Travel Concessions Business

The Group announced on 28 September 2005 its decision to sell its Travel
Concessions business, Select Service Partner (SSP). We continue to see good
underlying growth in the business, particularly in Europe. The sale process
continues to proceed well. It is now in its final stages and remains on schedule
for completion by mid-2006.


ENDS
 

Enquiries:     

Compass Group PLC        [phone]
Investors/Analysts       Andrew Martin
Media                    Paul Kelly

Website:
www.compass-group.com


Notes:

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 over £12 billion and
employs 410,000 people in over 90 countries.

The financial statements for the six months ending 31 March 2006 will be
reported in accordance with International Financial Reporting Standards ('IFRS')
issued by the International Accounting Standards Board ('IASB'). Comparative
information for the year ended 30 September 2005 has been reissued on an IFRS
basis, with appropriate reconciliations to the previously reported UK GAAP
position and results. Details can be found on the Group website using the
following link: 
http://www.compass-group.com/MediaCentre/NewsReleases/01032006_IFRS.htm



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