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Compass publishes Q3 trading update

26th Jul 2018 - 09:33
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Compass Group has published its third quarter trading update today (26 July), with organic revenue up 5.7% for the nine months to 30 June.

Happy with the results, Compass said the business “continues to trade well and (its) full year expectations are unchanged” – meaning its 'on track' to deliver modest margin progression for the full year.

 

Strong rates of net new business in the UK drove organic revenue growth in Europe - +3.2% in the third quarter and +1.4% in the nine months to 30 June.

 

Compass North America also continued to perform 'strongly,’ with organic revenue growth of 7% in the third quarter and 7.2% in the nine months to 30 June.

 

It said growth was particularly good in its business and industry, vending, and healthcare businesses, “partly offset by the impact of the timing of sports and leisure events.”

 

Rest of World meanwhile saw organic revenue grow by 3.1% in the third quarter and by +3.3% in the nine months to 30 June.

 

Looking ahead, Compass said: “(The company) continues to have a good year. Revenue growth in North America is strong, Europe is accelerating as expected and Rest of World is progressing well.

 

“Better than planned margin improvement in Rest of World is offsetting a more difficult volume and cost environment in Europe.

 

“As a result, our full year expectations are unchanged, with organic growth above the middle of our 4-6% range, and modest margin progression.

 

“Looking to the longer term, we continue to be excited about the significant structural market opportunity globally and the potential for further revenue growth, margin improvement and continued returns to shareholders.”

Written by
Edward Waddell