5th Feb 2026 09:40
(Alliance News) - Compass Group PLC on Thursday reaffirmed full-year guidance after reporting a "strong" start to its financial year as increased volumes offset weaker prices.
The Chertsey, England-based contract foodservice company reported organic revenue growth of 7.3% in the quarter to December, slightly ahead of 7.1% company compiled consensus.
The North America division delivered 7.3% organic growth in the period, with International a touch softer at 7.1%.
Compass said it delivered strong performances across both regions and all sectors, with Sports & Leisure and Business & Industry remaining "our fastest‑growing areas."
B&I achieved double‑digit organic growth in North America, driven by robust first‑time outsourcing wins and continued expansion within the technology sector.
Net new business growth was within the 4% to 5% range, underpinned by strong client retention above 96%, Compass said.
Pricing moderated as anticipated in a lower inflation environment, while volumes continued to contribute positively to growth, the FTSE 100 listing added.
Annualised new business wins totalled USD4 billion, up 10% year on year, with nearly half generated from first‑time outsourcing.
As a result, Compass reaffirmed 2026 guidance and continues to expect around 10% underlying operating profit growth, at constant currency, driven by: around 7% organic revenue growth, around 2% profit growth from M&A and ongoing margin progression.
In the financial year to September, Compass reported underlying operating profit of GBP3.34 billion.
Shares in Compass fell 3.5% to 2,145.18 pence each in London on Thursday. The wider FTSE 100 was down 0.4%.
Chief Executive Dominic Blakemore said: "We have delivered a strong start to the year with broad based growth across every region and sector. The momentum in our B&I segment, particularly in North America, reflects the strength of our model and the value we continue to deliver for clients."
Blakemore said the acquisition of Dutch food services business Vermaat, completed in December, will further accelerate growth.
"With strong new business wins, disciplined execution, and a clear strategy, we remain confident in our outlook and our ability to drive sustainable, long-term value for shareholders," he added.
In addition, Compass said it intends to change the trading currency of its ordinary shares on the London Stock Exchange from sterling to US dollars, effective April 1.
The change will not affect Compass Group's FTSE index inclusion or its LSE listing.
Dividends will continue to be paid in sterling unless shareholders elect to receive them in USD.
By Jeremy Cutler, Alliance News reporter
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