Compass Group upgraded its outlook for full year, expecting organic growth to come in slightly above the middle of its guidance as strong levels of new business wins bolstered first-quarter revenues.
Compass' organic revenue for the three months to 31 December 2018 grew by 6.9%, supported by growth in North American, Europe and Rest of the World of 8%, 6.4% and 2.8%, respectively.
The revenue growth was driven by strong levels of new business wins, continued good retention rates and bolstered by the impact of the new UK Defence contracts and a positive sporting events calendar, the company said.
Currency movements, compared to the same quarter last year, had a positive translation impact on revenues and profit in the quarter of £107m and £10m respectively, the company said.
'If current spot rates were to continue for the remainder of the year, foreign exchange translation would positively impact 2018 revenue by £508m and operating profit by £43m,' it added.
In the first quarter, the group spent £197m on acquisitions in North America.
'We had an excellent start to the year and now expect to be slightly above the middle of our target 4-6% organic growth range for the full year, with modest margin progression, Compass Group said.