LONDON -(Dow Jones)- Compass Group PLC (CPG.LN), a food and support services company, said Tuesday it is performing well in the fourth quarter, with margin growth of around 70 basis points expected in the fourth quarter and 60 basis points in the full year.
MAIN FACTS:
-Continuing management of the flexible cost base and accelerating cost efficiencies have more than offset a modest decline in revenue.
-Expects a favourable impact of GBP120 million on operating profit from the movement of its key currencies compared with last year – translating the profits of last year to this year’s actual exchange rates.
-On a constant currency basis, underlying earnings per share are expected to grow by around 14%.
-Cash flow conversion remains strong.
-Constant currency revenue growth, including acquisitions, expected to be around 1% for the full year and organic revenue growth, which is the combination of net new business and like for like revenue growth, is expected to be broadly flat.
-Throughout the year the level of new contract wins and underlying retention has remained strong across the business at levels consistent with last year.
-In the more cyclical Business & Industry (B&I) and Sports & Leisure sectors, like for like volumes continue to be impacted by reduced levels of employment and lower levels of client discretionary spend.
-Like for like volumes in the Education, Healthcare and Defence, Offshore and Remote Site (DOR) sectors have remained solid throughout the year.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com