Compass Group catering chefs

Compass Group has released a positive trading update ahead of its full-year results in November

Compass Group has said it expects its full-year sales growth to be around 4.5%.

In a trading update this morning, the catering giant, which will release its full-year results on 27 November, also predicted its operating profit margin would be over 7% for the first time, and 20 basis points higher than the year before.

Trading during the year had been driven by “strong levels of new business wins, good retention rates and modest inflationary price increases”, it added.

Compass described sales growth in North America and Fast Growing & Emerging markets as “strong”, but said “challenging economic conditions” in Europe & Japan were continuing to impact like-for-like volumes, particularly in southern Europe.

“Looking forward, we remain very positive about the opportunities to grow the business and we are well placed to capitalise on the significant structural growth potential in both food and support services globally,” the company added.

“We also expect to deliver further cost efficiencies which will help to support future growth and enable us to make further progress in the operating margin. As a result we remain confident in our ability to continue to create significant value for our shareholders.”