Compass Group (LSE:CPG) PLC has posted an improvement across all its segments but the Business & Industry arm, which includes conferences, continues to be weak.
Revenue in the fourth quarter, ending on 30 September, is expected to be 86% of 2019 levels, slightly ahead of guidance of 80-85%.
For the full year, revenues are expected to be around 76% of 2019.
Trading was led by Sports & Leisure with improved attendance, particularly in outdoor sports, and strong per capita spend.
The Healthcare and Defence, Offshore & Remote sectors have been resilient throughout the pandemic and continued to trade above 100% of 2019 revenues during the period.
Since the start of September, the return to Education has been strong with high on campus spending.
The FTSE 100 catering group’s underlying operating margin in the fourth quarter is expected to be around the mid-point of the guidance range of 5.5% to 6%, dipping to 4.4% in the full year.
“Compass Group (LSE:CPG) is pointing in the right direction. The contract caterer has benefitted as more of us have ventured out to watch live sport, while more resilient divisions including feeding the defence industry have held up remarkably well. The bigger question now turns to the Business & Industry division. Office occupancies and schooling remain disrupted, and to some degree these changes will be permanent," analysts at Hargreaves Lansdown commented.
"A dogged cost saving schedule and sticky demand in other areas means Compass’ margins are expected to return to sturdier levels, but exactly what the shape of full recovery’s going to look like is a bit harder to map.”
Shares dipped 1% to 1,477.5p on Tuesday at the opening bell.