compass Foodservice company Compass Group was tipped as one of the stocks to watch at the start of ...
Foodservice company Compass Group was tipped as one of the stocks to watch at the start of 2006.
Founded in 1941, the firm employs 400,000 staff and specialises in providing food, vending and related services. Annual turnover stands at around £11bn.
Despite its business successes, shares traded below 300p until the end of 2006 before a recent run in the past month saw the stock jump from 310p to close to 360p today.
The share price hike followed interim results for the first five months of the current fiscal year which were well ahead of analysts' expectations.
For the six months to 31 March, Compass said it is expecting mid-single-digit organic revenue growth and a margin improvement of around 60 basis points compared to a year ago.
However it warned that while profitability has been improved at operations around the world, it remains stubbornly stagnant in the UK, as does revenue.
On 18 April, Compass Group was priced at 358.25p, which represents its 12-month high.
Its 12-month low was 283.75p.