Catering giant Compass Group said this morning that it is continuing to “trade well” after third quarter revenue grew 5.7% year-on-year.
Growth during the three months to June 30 was driven by strong net new business in North America, an acceleration in Europe and good progress in Rest of World, according to the company.
In Europe, organic revenue increased 3.2%, largely fuelled by strong rates of net new business in the UK.
The company said that the benefits from cost actions it has taken to offset above average inflation in the UK are starting to come through with an improving run rate. However, these were offset by a more challenging volume and cost environment in the UK, it reported.
Compass invested £27m in acquisitions in the third quarter mainly in small infill vending businesses in North America. It has now spent £355m on acquisitions over the past nine months.
The company stated: “Compass continues to have a good year. Revenue growth in North America is strong, Europe is accelerating as expected and Rest of World is progressing well. Better-than-planned margin improvement in Rest of World is offsetting a more difficult volume and cost environment in Europe.
“As a result, our full year expectations are unchanged, with organic growth above the middle of our 4%-6% range, and modest margin progression. Looking to the longer term, we continue to be excited about the significant structural market opportunity globally and the potential for further revenue growth, margin improvement and continued returns to shareholders.”