Compass serves up healthy trading statement

Catering giant Compass Group has issued an upbeat trading statement ahead of today's AGM, saying that business in the first four months of the current year have been in line with expectations.

The biggest catering company in the world said it is on track to deliver 6% growth in like-for-like turnover.

Last December the group reported a 9% hike in turnover to £11.2bn (€16.5bn) and a 12% jump in profits to £654m (€967.5m).

"2004 has started well and trading in the first four months of the current financial year has been in line with expectations," chairman Francis Mackay is set to tell shareholders later today.

"The strong start to the year gives us confidence in re-iterating our full year targets for 2004."

Mackay said that strong growth seen last year in new business has continued in 2004 in all parts of the group.

"The trends that we reported on at the preliminary results in December 2003 have remained broadly unchanged, with the ongoing outsourcing in healthcare and education and increased activity in the defense, offshore and remote site sector driving new business wins," he said in the statement.

The company's Eurest operation employs 1,500 staff in the Republic, and provides catering and foods ervice operations to companies such as General Electric and Eircom. It signed up a number of new clients last year, including Halifax and Wyeth.