5th Feb 2015 07:43
LONDON (Alliance News) - Catering and outsourcing company Compass Group PLC Thursday said it made a strong start to its new financial year, citing like-for-like revenue growth, with modest pricing and sales volume improvements in its first quarter.
The company said organic revenue grew by 5.7% in the three months to end-December, whilst it also improved its operating margin.
"Our focus on organic growth continues to drive strong levels of new business and good retention rates across all regions," the company said in a statement.
Compass said that revenue growth was driven by double-digit organic growth in emerging markets, a strong start to the year in North America and Europe, and Japan returning to growth, driven by good levels of new business wins and better retention rates.
However, the company said that some of that growth in emerging markets, which was driven by a continued trend to outsourcing, was offset by volume pressures in some countries due to a mixed macroeconomic back drop.
"Compass had a strong first quarter, and we maintain our positive expectations for the full year. However, the economic environment is uncertain in some of our markets, and lower oil prices may impact our oil extraction related offshore and remote business. Our pipeline of new contracts is encouraging," the company added.
The company said adverse exchange rate movements in the quarter hit revenue by GBP40 million and its profit by GBP2 million.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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