Catering giant Compass (CPG), one of our tips of the year for 2013, has got off to a strong start by reporting growth in its first quarter above most analysts’ expectations.
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Organic revenue growth came in at an impressive 6 per cent in the first three months of its financial year, with particularly strong trading coming from North America. The other growth area, emerging markets, also performed strongly. However, trading in Europe and Japan, which account for about one third of sales, remains sluggish. The catering group continues to use its strong cash generation to good effect by making £77m worth of bolt-on acquisitions in the period as well as continuing with its £400m buy back programme.