Compass Group off to a flyer with new business wins

Big player: Compass counts the O2 Arena among its clients

11 April 2012

Compass Group, the world's biggest caterer, is winning new contracts and plotting takeovers as its expansion continues.

The server of 4 billion meals a year in schools, offices, prisons and hospitals around the world, said today it has made a good start to the year.

Compass, which counts London's O2 arena, Amazon.com and the Super Bowl among its clients, reported first-quarter revenue growth of 5.5% as it benefited from new business wins in both its food and support services business.

Since last September, Compass has made £25 million worth of acquisitions. These include deals to buy Life's A Party in Australia, a 90% interest in Chiyoda Food in Japan, Menke Menue in Germany and Sabora in Spain.

The company said that while the primary focus remains on driving organic growth, it is looking to make bolt-on acquisitions to take advantage of opportunities in both developed and emerging countries.

Stockbroker Panmure Gordon said the statement was "strong" and advises clients to buy the shares.

These gained 2.5p to 558p today, leaving Compass Group valued at £10.5 billion.