Provides contract food, catering and support services to a wide range of commercial businesses and government departments operating in over 50 countries. I have a holding in my income portfolio (epic code: CPG).
Compass Group issued their first quarter IMS yesterday and organic revenue growth was stated as being approximately 4% (at constant currency). They also mentioned that the underlying trends in the three regions have been consistent with the second half of 2013:
North America - like for like revenue remains broadly flat.
Europe & Japan - economic conditions continue to be difficult and overall organic revenue in the first quarter remains negative, although they are starting to see some signs of stabilisation.
Fast Growing & Emerging - the slowdown in the Australian mining sector has continued, although elsewhere organic revenue growth remains strong.
Compass has had a good first quarter and their expectations for the full year remain unchanged. They are though facing translation headwinds, due to the on-going strength of sterling and the effect of translating weaker currencies for reporting purposes into sterling. They state that if the current spot rates were to continue through 2014, they would expect a negative currency impact of 5.4%, or £942m, on 2013 reported revenues and 5.7%, or £72m, on 2013 underlying profit.
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