Compass organic revenues grow in Q1

Compass said it continued to benefit from "strong outsourcing trends", with net new business growth of 5.5%, significantly above its historical rate of around 3%.

The FTSE 100-listed firm highlighted that like-for-like volumes were "particularly strong" in business and industry, as employees continued to return to the office, and sports leisure, where participation rates remained high.

"Whilst inflation remained elevated, we continued to work closely with our clients to help mitigate this pressure both operationally and through appropriate pricing," said Compass.

All regions were said to have "performed strongly" in the quarter - with organic growth of 23% in North America, 26% in Europe and 27% in its rest of world segment.

"The outsourcing market remains strong, and we are excited about the significant growth potential across our markets. The increasingly complex operating environment and growing focus on sustainability and digitalisation, combined with our market leading offering, mean we are best placed to capture these opportunities," said the firm.

"We remain positive for FY 2023 and reiterate our guidance. We expect operating profit growth above 20% on a constant currency basis, organic revenue growth of around 15%, weighted towards the first half of the year, and an underlying operating margin above 6.5%."

Reporting by Iain Gilbert at Sharecast.com