Compass figures in healthy shape

Compass Group, the catering giant that feeds soldiers, patients, schoolchildren and inmates across the world, enjoyed a tasty rise in its shares today as the City digested a trading update.

The company says the fourth quarter was strong, boosted by rising margins and favourable currency movements. The currency gain alone could add £120 million of profit when Compass unveils annual results in November.

Compass has recently won deals to feed Google staff in Australia and Electrolux employees in Sweden.

"Throughout the year the level of new contract wins and underlying retention has remained strong," said the statement.

"In the medium-term, a combination of the growth in outsourcing and global economies recovering should produce an upswing in demand." The shares rose as high as 376p in early trading, the best for 12 months. They were later up 10p at 369½p.

Compass, whose clients include Chelsea Football Club and the Bank of England, is trying to distance itself from the Turkey Twizzler scandal of several years ago when it was attacked for feeding poor-quality food to schoolchildren.