Compass share price leaps as group reports strong start to year

Compass Group’s (LON:CPG) share price rose to a record high this morning after the world’s largest catering firm reported a rise in revenue during the first quarter of the financial year and said its outlook for 2016 remained positive.

Compass revealed that its organic revenue had grown 5.9 percent year-on-year in the three month ended December 31, with like-for-like revenue also increasing thanks to modest pricing and some volume improvement. In North America, which accounts for more than half of the group’s business, underlying revenue growth was 7.9 percent, while Europe and Japan, which make up around 30 percent of the business, saw a 3.6 percent rise. Compass said, however, revenue from the Rest of World region slid to 3.6 percent, as continued weakness and a challenging environment in some emerging markets, dragged on robust growth in Spanish speaking Latin America.

“Our outlook for 2016 remains positive,” Compass stated. “Growth in North America is strong, Europe is improving, and we are managing the challenges in the Rest of World region. We continue to focus on driving efficiencies throughout the business and our margin expectations are unchanged. In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue and margin growth,” the FTSE 100-listed company added.
Compass’ share price jumped more than five percent in early trading today to a record high of 1,238p. As of 10:36 GMT, the stock was changing hands at 1,219.00p, 3.83 percent up intraday. The FTSE 100 index meanwhile stood 1.38 percent better off at 5,917.85 points.
As of 10:48 GMT, Thursday, 04 February, Compass Group plc share price is 1,222.50p.