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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Leisure, gaming and gambling

Compass Group falls as French rival sees sales slump

Compass Group PLC (LSE:CPG), the catering company, fell 2% after it suffered a negative read across from French rival Sodexo's warning that sales were lower than expected in the third quarter.

Shares in the Paris-listed food caterer dropped close to 5.5% after it said demand had slowed in China, causing quarterly sales growth to slow.

Revenue increased by 6.8% year-on-year to €6.07 billion during the quarter, missing company guidance of €6.11 billion.

The group said slower growth was caused by lower pricing, tougher comparatives and the downturn in Chinese markets.

"The slowdown in China is impacting mainly the tech sector, particularly the corporate service segment," chief financial officer Sébastien de Tramasure stated.

However, Sodexo remained confident about its prospects in the country, predicting that the market will recover in the long term.

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