Compass revenue grows in Q3 amid strong new business wins

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Food services group Compass reported third quarter organic revenue grew by 36.4% on strong business wins in the quarter.

The company saw strong new business wins across all regions, with around 50% of new wins coming from first time outsourcing.

Growth in its B&I and education divisions improved gradually whilst healthcare & seniors and defence, offshore & remote sectors continued to grow.

The sports & leisure business benefitted 'significantly from higher attendance levels following an easing of restrictions in North America,' the company said.

The group's operating margin increased by 80 basis points from 4.2% in Q2 to 5.0% in Q3 amid ongoing cost cuts, and the resizing of its business.

'In Q4, with the ongoing reopening and mobilisation of sites in some of our biggest markets, we expect to be trading at 80-85% of pre-COVID levels and our operating margin is expected to increase by a further 50-100 bps to 5.5%-6.0%, the company said

'We are confident in our ability to return to a Group underlying margin above 7% before we return to pre-COVID volumes,' it added.

On 21 September 2021, the company will release its Q4 pre-close statement ahead of the FY 2021 results on 23 November 2021.