Compass: strong start to year lifts shares

(CercleFinance.com) - British caterer Compass has said it has had an "excellent start to the year," prompting a slight rise in its London-listed shares on Thursday.


The group said it now expects to be slightly above the middle of its full-year target organic growth range of 4%-6%, with a modest progression in its margin.

Compass' organic revenue for the three months to 31 December 2018 grew by 6.9%, driven by new business wins, a good retention rates of existing clients,having been bolstered by the impact of the new UK Defense contracts and a positive sporting events calendar.

The company is also continuing to generate efficiencies to offset inflationary headwinds, it said.

"The company saw first-quarter organic growth better than expectations and raised its organic growth expectation for 2019," noted analysts at UBS.

As a result, the Compass share is currently up 4.4%.

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