Mitie reports rise in Q1 revenue, Compass ups full-year outlook

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The FTSE 100 is expected to open 33 points lower on Tuesday, having closed up 0.53% on Monday at 8,198.78.

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Mitie Group reported a 10.5% increase in first quarter revenue in an update on Tuesday, reaching £1.16bn, driven by acquisitions, increased projects, and pricing adjustments. The FTSE 250 outsourcing specialist said it secured £2bn in total contract value from wins and renewals, including significant extensions with major clients, and initiated a three-year margin enhancement program aimed at £20m in cost savings for the 2025 financial year. It also launched a £50m share buyback programme, and acquired ESM Power for £5.5m, boosting its position in the high voltage power connections market.

Catering giant Compass Group boosted its full-year guidance on Tuesday, following a bumper third quarter. Updating on trading, the world’s largest catering company said organic revenues rose 10.3% in the three months to 30 June, It saw growth in all regions, with sales up 12% in Europe and 9.9% in North America. Compass provides food for work and school canteens in around 30 countries. North America is its biggest market, however, accounting for around 70% of group revenues.

Newspaper round-up

Kamala Harris has secured enough delegates from her party to clinch the Democratic presidential nomination, as she pledged to offer Americans a “brighter future” compared to the “chaos, fear and hate” proposed by Donald Trump. The US vice-president was speaking in Wilmington, Delaware, on Monday, the first full day since President Joe Biden dropped his re-election bid and endorsed her for the Democratic presidential nomination, shaking up the 2024 race for the White House. – Financial Times

A US Congressional committee has called on CrowdStrike’s chief to testify at a hearing about the cybersecurity firm’s role in the global tech outage that brought flights, banks, and hospital procedures to a halt. On Friday, a major tech outage embroiled the world in chaos as computers running Microsoft Windows began to show the “blue screen of death”, which later became clear was due to a faulty update to a CrowdStrike software. – The Independent

Vivendi plans to float its French TV business Canal+ in London, providing a shot in the arm for the capital’s stock exchange after a number of high-profile companies opted for rival international financial centres such as New York. The move is part of a drive to break up the media conglomerate controlled by the billionaire Vincent Bolloré to realise value from its different operations. – The Guardian

The flooring retailer Tapi has struck a multimillion-pound deal to rescue the Carpetright brand and a number of stores from its collapsed rival’s administrators. Tapi is to buy the Carpetright brand, intellectual property, 54 stores and two warehouses, in a pre-pack administration deal that will complete today and save over 300 jobs. – The Times

The former Cabinet minister Nadhim Zahawi is leading a potential bid to buy The Telegraph, it has been claimed. Mr Zahawi, whose Cabinet appointments included a two-month stint as chancellor in 2022, has been approaching investors about a £600m bid for The Telegraph and The Spectator, according to Sky News. Mr Zahawi has discussed funding a potential bid with the Reuben family, the property billionaires who own a stake in Newcastle United Football Club, it was reported. – The Telegraph

US close

Major indices closed higher on Monday after Joe Biden dropped out of the US presidential race over the weekend.

At the close, the Dow Jones Industrial Average was up 0.32% at 40,415.44, while the S&P 500 advanced 1.08% to 5,564.41 and the Nasdaq Composite saw out the session 1.58% stronger at 18,007.57.

The Dow closed 127.91 points higher on Monday, reclaiming a portion of the losses recorded in the previous session.

President Joe Biden's decision to drop out of the election race was in focus on Monday, with him opting to endorse vice-president Kamala Harris for the Democratic Party's nomination.

Both Biden's performance in last month's debate and a recent attempt on Donald Trump's life led to calls for the incumbent to bow out of the race in favour of Harris.