Compass Group Says 4Q Underlying Revenue to Be 86% of Fiscal Year 2019's

By Anthony O. Goriainoff

Compass Group PLC said Tuesday that it expects fourth-quarter underlying revenue on a constant currency basis to improve to 86% of 2019 revenue, and for it to be slightly ahead of the previous guidance range of 80% to 85%.

The U.K. catering contractor said although it expects most of its sectors to continue performing well, it remained cautious about its Business & Industry segment given the continuing uncertainty surrounding the pace of office reopenings in its major markets.

For the year ending Sept. 30, it expects underlying revenue on a constant currency basis to be around 76% of what it was in fiscal 2019, it said. The company reported underlying revenue of 25.15 billion pounds ($34.35 billion) for fiscal 2019.

The FTSE 100 company said it expects fourth-quarter underlying operating margin to be around the midpoint of the guidance range of 5.5% to 6.0% as it continues to manage mobilization costs and inflation, while adapting operations to suit clients' changing requirements.

For fiscal 2021 as a whole, Compass expects an underlying operating margin of around 4.4%.

"We continue to be encouraged by the ongoing growth opportunities including strong momentum in new business wins, from the acceleration in first-time outsourcing, and increased potential for market share gains," the company said.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

September 21, 2021 02:43 ET (06:43 GMT)

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