28th Mar 2006 07:01
Compass Group PLC28 March 2006 28 March 2006 Compass Group PLC: Trading Update This statement updates investors on the Group's progress in the current year,ahead of the announcement of its interim results to 31 March 2006 on 16 May2006. Trading Further to the Chairman's statement at the AGM in February 2006, we anticipatethe Group will trade in line with expectations for the six months to 31 March2006. The Group continues to see good levels of new business and contractretention. The focus remains on improving operating and capital efficiency anddriving free cash flow. In achieving the targeted £50m of overhead savings, themajority of the restructuring costs will be incurred in the first half of 2006,with the benefits more weighted towards the second half. Trading in North America remains strong across all sectors, and has been drivenby new business wins and high contract retention levels. In the UK, trading is developing in line with our expectations across the mainbusiness sectors. As previously outlined, the State Education sector is stillthe most challenging as we continue to work with our clients to manage thetransition to healthier eating. Our priority remains the improvement of theoverall performance of the UK contract business, particularly throughrenegotiating or exiting poorer performing contracts. In Continental Europe, the macro-economic environment remains challenging withturnover growth currently at similar levels to 2005. Against this backdrop, ouremphasis remains on cost-management, including capital expenditure and contractretention. In the Rest of the World, our ongoing businesses, particularly in Australasiaand South America, continue to trade strongly driven by new business wins andimproved throughput. As previously indicated, the scaling-back of our MiddleEast military business is on track to be completed by mid-2006. Sale of Travel Concessions Business The Group announced on 28 September 2005 its decision to sell its TravelConcessions business, Select Service Partner (SSP). We continue to see goodunderlying growth in the business, particularly in Europe. The sale processcontinues to proceed well. It is now in its final stages and remains on schedulefor completion by mid-2006. ENDS Enquiries: Compass Group PLC +44 (0) 1932 573000Investors/Analysts Andrew MartinMedia Paul Kelly Website:www.compass-group.com Notes: Compass Group PLC is the world's leading foodservice company providing food,vending and related services to clients and customers in the workplace at schooland colleges, hospitals, on the move, at leisure and in defence, offshore andremote locations. Compass Group has annual revenues of over £12 billion andemploys 410,000 people in over 90 countries. The financial statements for the six months ending 31 March 2006 will bereported in accordance with International Financial Reporting Standards ('IFRS')issued by the International Accounting Standards Board ('IASB'). Comparativeinformation for the year ended 30 September 2005 has been reissued on an IFRSbasis, with appropriate reconciliations to the previously reported UK GAAPposition and results. Details can be found on the Group website using thefollowing link: http://www.compass-group.com/MediaCentre/NewsReleases/01032006_IFRS.htm This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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