Compass Group PLC (LSE:CPG) said the current year has started on an encouraging note, with little impact from the omicron variant as all its sectors continued to improve.
Organic revenue grew by 38.6% in the first quarter, with revenues reaching 97% of their pre-COVID-19 level, the support services company said in a statement.
In its regions, four out of five sectors are trading above 100% of pre-pandemic 2019 revenues.
Growth was particularly strong in North America in Sports & Leisure and Education, while in Europe, all sectors traded well except for Business & Industry, which continues to be impacted by reopening delays.
The group repeated its full-year organic revenue growth forecast of 20%-25%. Quarterly growth rates are expected to slow through the year, reflecting more challenging comparatives.
The full-year underlying operating margin is expected to be over 6%, returning to around 7% by the year end.
The acceleration in new business wins seen in FY21 continued into the new year, with three out of the five top wins globally coming from first time outsourcing.
The company cautioned that foreign currency headwinds could negatively impact 2021 revenue by £75mln and operating profit by £3mln.
It also said it may see some impact from omicron in the second quarter, with Business & Industry clients delaying their return to work, some Sports & Leisure events being postponed and Education facilities extending remote learning.
Shares climbed almost 8% to 1,785.50p midmorning.