2 February 2012
Compass continues to trade as expected on the back of good revenue growth and contract retention, according to its first interim management statement for 2012.
Group revenue growth was more than 8 per cent, said the statement, issued ahead of its annual general meeting scheduled for today in London.
The brief statement noted: “Compass has had a good first quarter and our expectations for the full year remain positive and unchanged.”
The improved level of retention achieved in the second half of 2011 has continued into the new financial year.
North America recorded good levels of organic revenue growth across all sectors. “In the fast-growing and emerging markets, organic revenue growth has been strong, with good performances in Australia, Brazil, Turkey, India, China and Russia.”
But the European market continues to be impacted by the challenging economic environment in some countries, while in Japan is gradually returning to normal activity levels.
Since 30 September 2011 Compass said it has announced £140 million of acquisitions.
In support services, Compass picked up Integrated Cleaning Management in the UK and has also agreed to buy South African cleaning business Supercare Services Group.
In foodservice, it acquired Dora Gastro in the Czech Republic and completed the acquisition of Obasan in Turkey.
The statement concluded that “there has been no significant change in the strong financial position of the group in the period since 30 September 2011”.
Recent contract wins and renewals in the UK include food provision at 47 Reading Borough Council schools and 32 primary and special schools for Derby City Council. For Reuters information group, Compass added security services to its existing food contract.
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