Catering giant Compass expects revenue growth to slow in the short term as a result of its efforts to tighten financial controls and generate higher margins.
The group has continued to trade in line with expectations for the year to 30 September and hit its target of £50m in overhead savings.
In a trading statement, ahead of the full year results annnouncement on 29 November, Compass said that the UK business was showing positive signs of stabilising and that it was confident of delivering a similar level of revenue and overall profitability to the previous year. It added that it had made particularly good progress in the education sector where it had helped deliver meals to the UK government’s new nutritional standards.
Compass completed the deal to sell its railway station, airport and roadside catering division for £1.8bn in June. It sold its Moto motorway services chain to a consortium led by Australia’s Macquarie Bank, and offloaded its fast food brands - including Upper Crust, Whistlestop and Caffè Ritazza - to a private equity group.
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