Compass Group show continued growth in Q1
Compass Group, the multinational services company that work across foodservice, cleaning and property management sectors, have expanded into a truly global conglomerate since they were founded over seventy years ago. Now, they are set to continue this growth if their first fiscal quarter is anything to go by.
They supply catering and other services to over 50 countries now, so their results depend on many variables across a range of regions. So, investors will have been reassured to see that Compass Group were able to post first quarter revenue growth and maintain their outlook for the rest of 2017.
The British firm were able to post organic revenue growth of 2.8% for the three months to 31 December 2016, which was in line with expectations – and caused the company’s share price to rise 2.3% on the back of the news.
The company stated that continued strong levels of new business wins and good retention rates had caused this organic revenue growth. They also said that like-for-like revenues increased modestly (6%), with ‘currency movements also adding £924 million to revenues, with a £74 million boost to operating profit’.
Compass Group share price over the last two years
As of 09 February 2017: 1437.00
SOURCE: Yahoo Finance
The company stated: ‘Our outlook for 2017 remains positive and unchanged. Growth in North America is strong, and both Europe and Rest of World are performing as expected with growth weighted to the second half. We continue to focus on driving efficiencies throughout the business and our margin expectations are also unchanged. In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue and margin growth.’
Dominion holds Compass Group in its Global Trends Managed Fund.
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