Compass expects interim revenue growth of 5.5%, warns of impact of lower commodity prices

LONDON (ShareCast) - Catering group Compass Group (Other OTC: CMPGF - news) said it remained confident of achieving first half organic revenue growth of approximately 5.5%. In a trading update on Monday, the company cited strong demand in North America and a return to growth in its European and Japanese businesses as the major driving factors behind the expected growth in revenue.

The FTSE 100 group said it expected revenue growth in North America for the six months to 31 March to be 8% on the back of an improvement in like-for-like revenues and unexpectedly high retention rates.

Meanwhile, organic revenue in Europe and Japan is expected to be approximately 0.5%, despite mixed economic conditions in both regions.

However, Compass warned that the economic environment in some of its emerging markets remained uncertain, while lower commodity prices were weighing on its offshore operations.

Compass shares were up 1.19% to 1,188.00p at 08:25 on Monday.