Compass Group PLC (LON:CPG) said it now back to break even again following the reopening of many of its customers' premises.
The FTSE100 group said it is pleased with progress in its fourth-quarter but said the pace of further recovery in margins and revenues is unclear especially with the possibility of more lockdown restrictions in Europe and the US.
In North America, schools have started to re-open and business & industry activity is recovering while healthcare has remained strong, the contract caterer said in a trading update.
Healthcare has also traded well in Europe with a meaningful increase in clients reopening in both Business & Industry and Education sectors.
Sports and Leisure sites remain closed in both continents.
Revenues for the year to 30 September are now expected to decline by 19% from the previous year, with the fourth quarter seeing a 36% fall compared to 44% for the third quarter.
Compass said its operating margin for the fourth quarter will be break-even, but it has taken an audit of contracts and will incur a £100mln impairment charge.
Liquidity at 30 September is expected to be around £5bn.