Compass Group, the world’s largest catering company, upgraded its estimates for revenue growth for the second time in a year due to new business gains, helping to push its stock to its highest level in more than two years.
The company, which feeds office workers, the armed forces and school children in 44 countries and caters for sporting events such as Wimbledon, said on Tuesday it expected revenue to rise by around 35%, up from the 30% it had previously expected.
Its stock rose 1.3% to £18.69, having risen as high as £18.78, its highest level since February 2020.
The British company has been hit hard by the pandemic, with businesses closing down and having to change its menus and reduce the number of suppliers to cope.
As people return to offices, schools and sporting events with packed stadiums after the pandemic, Compass is also seeing a rise in demand for outsourcing as small businesses find it expensive to manage catering themselves.
The war in Ukraine led Compass to forecast that its profit margin in the latest quarter would slip slightly from around 7%, although it kept its annual margin estimates close to 6%.
In the quarter to June 30, Compass said organic revenue rose 43.4%.
Source: Capital
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