Compass Group PLC (LSE: CPG) said it is continuing to perform well and that, as expected, organic revenue growth has continued to slow as a result of the more challenging economic conditions.
In a third quarter interim management statement, the catering and support services company said encouragingly, the level of new business wins and underlying retention has remained strong and consistent with the levels seen in the first half of the year and the last financial year.
Investors chose to focus on the slowing sales growth, sending the shares down more than 7 percent by late morning.
In the first nine months of the financial year, to June 30 2009, revenue growth on a constant currency basis was 1.8 percent, and organic revenue growth was 0.8 percent, the company said.
Looking forward to the full year, revenue growth on a constant currency basis is expected to be around 1 percent and organic revenue growth is expected to be broadly flat. “The delivery of accelerated cost efficiencies underpins our expectation of making continued progress in operating profit, margin and free cash flow throughout the remainder of the year,” Compass added.
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