LONDON (ShareCast) - (Sharecast News) - Compass Group saw shares fall on Wednesday after the contract caterer held on to full-year guidance, which points to a slight slowdown in underlying revenue and profit growth, despite a strong first half.
On a statutory basis, revenues increased by 8.8% year-on-year to $22.6bn in the six months ended 31 March.

On an organic basis, the company reported 8.5% growth for the half year as a whole, with second quarter momentum easing from the 9.2% organic growth registered in the first quarter.

Underlying operating profits jumped by 11.6% year-on-year to $1.63bn, helped by a 10 basis-point improvement in the underlying operating margin to 7.2%.

However, the company still stuck with full-year guidance for organic revenue growth above 7.5% and high single-digit underlying operating profit growth.

Shares were down around 4% at 2,508p in early deals on Wednesday.

"With consensus forecasts already wandering into double-digit growth territory, there may be some disappointment if Compass doesn't serve up an upgrade alongside [the] half-year results," said Derren Nathan, head of equity analysis at Hargreaves Lansdown in a preview of the earnings last week.

Despite the market's disappointment at the results, chief executive Dominic Blakemore delivered a bullish outlook, saying: "The market opportunity is very attractive, with first-time outsourcing accounting for 45% of new business wins. Over the last 12 months, we have signed over $3.6bn of new contracts, an increase of 8.5% year on year, and we have a strong pipeline of future business across all our markets."

The company raised its interim dividend by 9.2% to 22.6 cents per share.

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