Compass 'coping' with food price inflation

The UK-based caterer says in a statement: "We are continuing to be successful in our management of the impact of input cost inflation through rigorous application of the MAP (Management and Performance Programme) 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." It reports trading in the first five months to March 31st "has been ahead of our expectations" and the strong performance seen in the first three months has continued into the second quarter. "We expect organic revenue growth to be just over 5% for the half year and expect to deliver around 50 basis points of margin improvement compared with the same period last year. "Overall, we expect a favourable impact of around £6 million on operating profit from the movement of our key currencies for the six months to 31 March 2008. We have had an encouraging start to the year." In the UK, as analysts anticipated, Compass expects revenues and margins to be broadly in line with last year. The statement adds: "The education sector continues to make solid progress and the business and industry (B&I) 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." For more detail visit www.compass-group.com.