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The Markets
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Leisure, gaming and gambling

Compass Group flags strong trading but foreign exchange hit

Compass Group PLC has detailed stronger figures for its first quarter but flagged up a potential hit on currency movements.

Group revenue climbed by 9.2% in its first quarter to the end of December, as growth was recorded across all regions and sectors, the food services firm said.

North American and European sales increased by 9.7% and 8.4% respectively, as revenue across the rest of the world, which Compass said now accounted for 5%, climbed 7.9%.

However, currency movements would hit revenue by US$558 million (£447.9 million) and operating profit by US$36 million if spot rates remained over the coming year, it said.

This would compare to respective hits of US$69 million and US$16 million registered last year.

Guidance remained unchanged though, with high single-digit underlying operating profit growth, organic revenue growth above 7.5% and ongoing margin progression still expected.

Shares fell 3.2% to 2,727p on Thursday.

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