09 February 2023
If you are covering Compass Group’s latest trading update, please see the following comment from Mamta Valechha, equity research analyst at Quilter Cheviot:
“Compass reported a good set of Q1 numbers this morning, which have come in ahead of estimates. Organic revenue growth was up 24%, which means the group is now trading ahead of 2019 levels and suggests that there has been some market share gains.
“Compass continues to see strong outsourcing trends due to ongoing operational challenges and heightened inflation, with new business growth of 5.5% outpacing the historical rate of 3% - and this is across all regions, so not just relying on the US. This is very encouraging as new wins will flow into the outer years as organic growth.
“There is a small slowdown in the rate of new wins, but Q1 is usually a smaller quarter for this - particularly in education. Volumes were particularly high in Business and Industry as employees continued to return to the office, and in Sports and Leisure. The group remains positive on the outlook for 2023, and reiterated guidance.”
