The shakiness of the eurozone is even hitting Compass, though the FTSE 100 catering giant is still on track to make more than £1 billion in profits this year.
That’s thanks to growth in Australia and particularly in the US, where it has won contracts at universities and hospitals. In the half-year to the end of March sales are up 5%, roughly in line with City expectations. Broker Panmure Gordon reckons it will rack up profits of £1.15 billion for 2013, which should mean there is plenty of cash to make acquisitions, keep buying back its own shares and ensure a healthy divi.
The company admitted that “economic conditions across Europe and Japan remain difficult” with like-for-like revenue declines in the first half, and it has exited some uneconomic contracts. At its North American business organic revenue growth is expected to be around 8.5%.
The group provides catering to schools and hospitals to offshore rigs — and those strawberries at the Wimbledon tennis.
Shares today slipped 19p to 815p, valuing Compass at £15 billion.
