Compass Group PLC

AGM and Trading Update

RNS Number : 3013P
Compass Group PLC
07 February 2019
 

Legal Entity Identifier (LEI):                          No. 2138008M6MH9OZ6U2T68

 

 

 

7 February 2019                                                                                                         

 

AGM and Trading Update

 

Compass Group PLC today issues a trading update ahead of its Annual General Meeting to be held at 12:00 noon today in the Live Room, Rugby Football Union, Rugby House, Twickenham, Middlesex TW2 7BA. At this meeting, shareholders will be provided with the following update on the Group's performance since 30 September 2018.

 

Group

 

Compass' organic revenue for the three months to 31 December 2018 grew by 6.9% driven by strong levels of new business wins, continued good retention rates and bolstered by the impact of the new UK Defence contracts and a positive sporting events calendar.

 

We continue to generate efficiencies through our management and performance (MAP) programme to offset inflationary headwinds.

 

Regional performance

 

Organic revenue in North America increased by 8.0%.  Growth was very good across all sectors particularly in Business & Industry and Sports & Leisure, the latter of which benefited from the timing of certain events. 

 

In Europe, organic revenue grew by 6.4% reflecting continued momentum from new business wins, notably the significant impact of Defence contracts in the UK mobilised in the second half of 2018, a beneficial Sports & Leisure calendar and continuing good growth in Continental Europe.

 

Organic revenue in Rest of the World increased by 2.8%, with ongoing good performance in developing markets partially offset by the run-off of the last Offshore construction project in Australia.

 

Currency

 

Currency movements, compared to the same quarter last year, had a positive translation impact on revenues and profit in the quarter of £107 million and £10 million respectively.  If current spot rates were to continue for the remainder of the year, foreign exchange translation would positively impact 2018 revenue by £508 million and operating profit by £43 million.

 

Acquisitions and disposals

 

In the first quarter the Group spent £197m on acquisitions in North America.  Targeted and disciplined bolt-on acquisitions, focused on our core food offering, strengthen our capabilities and there is a good pipeline of opportunities across the Group.

 

We continue to make progress on the disposal programme.  We will provide a full update at the Half Year results.

 

Outlook

 

We had an excellent start to the year and now expect to be slightly above the middle of our target 4-6% organic growth range for the full year, with modest margin progression.  In the longer-term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue growth and margin expansion.

 

****

 

Compass will hold a conference call for investors and analysts today at 8:00a.m. (U.K. time).

 

Participant dial in number:

 

UK Toll Number: +44 (0) 330 336 9105

UK Toll-Free Number: 0800 358 6377

 

US Toll Number: +1 323 794 2093

US Toll-Free Number: +1 866 548 4713

 

Pin number: 8851953

 

Replay dial in number (available until 14 February 2019):

 

UK Toll Number: +44 (0) 207 660 0134

UK Toll-Free Number: 0 808 101 1153

 

US Toll Number: +1 719 457 0820

US Toll-Free Number: +1 888 203 1112

 

Pin number: 8851953

 

Enquiries

 

Investors         Kate Postans, Helen Javanshiri & Agatha Donnelly   +44 (0) 1932 573000

Press              Fiona Micallef-Eynaud, Brunswick                              +44 (0) 207 404 5959

Website           www.compass-group.com                            

  

Note to Editors

 

a)    Compass Group PLC is the world's leading food service company, which generated annual revenues of £23.2 billion in the year to 30 September 2018.  It operates in around 50 countries, employs over 600,000 people and serves over 5.5 billion meals a year. The Company specialises in providing food and a range of support services across the core sectors of Business & Industry, Healthcare & Seniors, Education, Sports & Leisure and Defence, Offshore & Remote, with an established brand portfolio. 

 

b)    Organic revenue growth, a term used throughout the announcement, is calculated by adjusting for acquisitions (excluding current period acquisitions and including a full period in respect of prior period acquisitions), disposals (excluded from both periods) and exchange rate movements (translating the prior period at current period exchange rates).

 

c)     Forward looking statements

 

Certain information included in this announcement is forward-looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of expected future revenues, financing plans, expected expenditures and divestments, risks associated with changes in economic conditions, the strength of the foodservice and support services markets in the jurisdictions in which the Group operates, fluctuations in food and other product costs and prices and changes in exchange and interest rates. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as "believes", "estimates", "anticipates", "expects", "forecasts", "intends", "plans", "projects", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are not guarantees of future performance. All forward-looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

 

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

 


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