Compass Group PLC (LON:CPG) said it continues to have a good year, with the world’s biggest catering firm reporting organic revenue growth of 3.9% in the third quarter, boosted by strong growth in North America.
In a trading update, the FTSE 100-listed firm said that, for the nine months to 30 June 2017, its organic revenue growth was 3.7%, while its operating margin increased by 20 basis points.
Compass said its full year expectations remain positive and unchanged, with North America performing strongly and it anticipates further progress in Europe and Rest of World in the fourth quarter.
In North America, the firm saw its organic revenue grow by 7.1% in both the third quarter and the nine months to 30 June, with good growth across all sectors except in its oil & gas business.
In Europe, organic revenue declined by 0.3% in the third quarter, impacted by the late timing of Easter, but grew by 1.0% in the nine month period to 30 June 2017, while in the Rest of the World organic revenue was down 1.3% in the third quarter, and fell by 3.8% over the nine month period.
The group added: “We remain focussed on driving efficiencies throughout the business and our margin expectations for the full year are also unchanged.”
Shares gain 1%
In early trading, Compass shares were up 1%, or 17p at 1,616p.
Steve Clayton, fund manager, HL Select UK Growth Fund which holds shares in Compass Group said: “At current exchange rates, these underlying numbers will be boosted hugely by the weak pound. Compass earns most of its money abroad and current exchange rates will add around £2.2bn to sales and £175mln to profits.
The fund manager added: “Compass has the ability to keep pushing the top line forward, managing margins upwards and throwing off cash in the process. The business has a great track record and looks well set to continue serving up more of the same.”