Compass Group (CPG.L) raised its guidance for 2026 as it delivered higher profits and revenue for the first six months of the fiscal year, supported by a double-digit-percentage rise in new business wins.
The British food services provider now expects an increase in underlying profit of between 10% and more than 11% at constant currency, compared with its previous forecast of 10%, according to a Monday earnings release. Meanwhile, organic revenue growth is still anticipated to come in at 7%.
For the fiscal first half ended March 31, the group reported $24.98 billion in statutory revenue, compared with $22.57 billion a year before. Organically, this was up 7.2% on the back of new business growth and robust client retention. New business wins amounted to $4.1 billion, up 14% on an annual basis.
Underlying operating profit rose to $1.84 billion from $1.65 billion over the period. On a statutory basis, operating profit rose to $1.61 billion from $1.48 billion, and attributable profit grew to $1.07 billion from $919 million.
In terms of shareholder returns, the board approved an interim dividend of $0.255 per share, higher than the year-ago $0.226 per share.
Analysts at RBC Capital Markets described Compass' first-half performance as "solid," with a positive sentiment on the group.
"Net new business wins of +3.8% for H1 a touch below the typical 4-5% range (with Q2 implied rate muddied by Q1 rounding), but promise of H2 acceleration should be taken reassuringly. Guidance for FY underlying EBITA growth ticked up by at least 1 pp which appears to be driven by organic operating leverage. Cash flow lumpy - reported FCF only +3%, with capex/sales +40bps YoY, though this would be consistent with an expectation of better NN for H2 and (likely) into FY27," RBC said in a quick take note. "Stock has materially underperformed ARMK YTD which has looked anomalous to us - we think the H1 print should reassure."
The group's shares were trading 1% higher in London as of Monday midday.
