14th Feb 2005 07:01
Compass Group PLC14 February 2005 14th February 2005 Compass Group PLCChairman's AGM Statement Compass Group holds its AGM today at the Queen Elizabeth II Centre, London at11.00am. At this meeting Sir Francis Mackay, Chairman of Compass Group PLC, willprovide shareholders with the following update: Current Trading and OutlookIn the first four months of 2005, turnover growth has remained strong in NorthAmerica and has developed in line with our expectations in the UK. The picturein Continental Europe and Rest of World division remains mixed. The Middle East,Asia/Australasia and Latin America continue to perform well, while NorthernEurope and in particular, France, Germany and the Netherlands are verychallenging. For the Group as a whole, we continue to expect that we willdeliver at least 6% like-for-like turnover growth in the current year. The trends in turnover growth in the first four months of the financial year2005 are broadly similar to those experienced in the second half of 2004. Newbusiness wins have been driven by the continued outsourcing of foodservice inthe Healthcare, Education and Defence, Offshore and Remote Site sectors,although as we expected, the rate of growth in the Defence, Offshore and RemoteSite sector has slowed. Today we are announcing a number of important contractwins, the details of which can be found in Appendix 1. Since the start of the new financial year, our focus has been on putting thenecessary actions in place to deliver strong free cash flow and improving returnon capital employed over the medium term. At the interim results in May, we willprovide further guidance on our longer-range objectives for the Group. Ourguidance for free cash flow in 2005 remains unchanged at £350m to £370m on aconstant currency basis. We have included a list of the key profit and losstranslation rates for the year ending 30th September 2004 in Appendix 2. Non Executive DirectorsWith effect from today, and after eleven years with the Group, Mr Denis Cassidywill retire from the board as non-executive director. We would like to take thisopportunity to thank him for his invaluable contribution to the development ofthe Group and wish him well in his retirement. 2005 CalendarIn advance of announcing the interim results on 18 May 2005, the Group willprovide its customary pre-close trading update at 7:00 a.m. on Thursday 31 March2005. ENDS Enquiries: Sarah Ellis Compass Group PLC 01932 573000Simon Sporborg / Pamela Small Brunswick 020 7404 5959 Note to Editors Compass Group PLC is the world's leading foodservice company providing food,vending and related services to clients and customers in the workplace, atschool and colleges, hospitals, on the move, at leisure and in defence, offshoreand remote locations. Compass Group has annual revenues of £12 billion andemploys 400,000 people in over 90 countries. Appendix 1 Today, we are announcing a number of significant contract wins and renewalsacross the business. In North America, University Place at Indiana University-Purdue University Indianapolis (IN) awarded Flik Conference Center Management anew ten-year contract with annual turnover of £8.6 million. Norfolk StateUniversity (VA) awarded Thompson Hospitality a new five-year contract withannual turnover of £3.0 million. In the UK, West Hertfordshire Hospitals NHS Trust renewed its contract withMedirest for a further five years with annual turnover of £8.6 million. Medirestwas also awarded a new five-year contract with Homerton University Hospital NHSFoundation Trust with annual turnover of £4.0 million. In Continental Europe and Rest of World, Statoil renewed its contract with ESSOffshore for a further five years with annual turnover of £11.5 million(Statfjord A, B & C platforms, North Sea). In France, Bouygues Arc de Seineawarded Eurest a new three-year contract with annual turnover of £1.7 millionand in Japan, Japan Post awarded Seiyo Food Systems a new three-year contractwith annual turnover of £18.3 million. Appendix 2 Key profit and loss translation rates for the year ending 30th September 2004 1 pound sterling - US $1.791 pound sterling - Euro €1.47 Approximate translation rate effect of a movement in these key exchange rates For every 5-cent movement in the US$ (from the 2004 profit and loss exchangerate of $1.79), the approximate translation effect on North America 2004turnover and operating profit (1) would be £89 million and £6 millionrespectively. The approximate translation effect on Continental Europe and Restof World 2004 turnover and operating profit (1) would be £8 million and £2million respectively. For every 5-cent movement in the Euro (from the 2004 profit and loss exchangerate of €1.47), the approximate translation effect on Continental Europe andRest of World 2004 turnover and operating profit (1) would be £93 million and £5million respectively. Note: (1). Before goodwill amortisation. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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