Compass forecasts flat FY revenue growth

LONDON — Shares in Compass Group PLC, the world’s biggest catering company, dropped nearly 8 percent after the world’s biggest catering company said it expects revenue growth this year to be essentially flat — up only 1 percent.

The company said that economic conditions in North America, continental Europe, Britain and Ireland were difficult over the nine months to June 30.

Revenue over that period was up 1.8 percent on a constant currency basis and organic revenue — net new business plus comparable revenue — was up 0.8 percent. Currency movements added 105 million pounds ($173 million) to operating profit in the period, it added.

The company said that it continued “to see good growth” in its so-called offshore and remote businesses, including Australia, Angola and the United Arab Emirates.

“New business opportunities remain encouraging,” it said, citing a “very significant” contract with Chevron to provide food and a full range of support services at its facilities in Western Australia.

Compass said it was focused on a significant market opportunity to grow its core food service business organically. The company completed the acquisition of Lackmann Culinary Services in North America in June and has also increased its stake in its joint venture with U.S. celebrity chef Wolfgang Puck to 90 percent.

Compass shares closed down 7.5 percent at 326.25 pence.