Compass Group (LSE:CPG) raised its 2026 underlying operating profit growth guidance to above 11% after a strong half year to 31 March.
The global food services group reported revenue of $24,983m for the half year (2025: $22,568m), up 10.7% and 8.7% on a constant-currency basis, with underlying operating profit up 11.7% on a constant-currency basis to $1,839m, underlying operating margin rising 20 basis points to 7.4% and underlying EPS to 72.8c (up 12%).
Underlying operating cash flow increased to $1,324m and underlying free cash flow was $825m, the group spent $2.3bn on acquisitions and $0.8bn on capital expenditure (3.4% of revenue), and leverage was 1.71x net debt to underlying EBITDA at 31 March, outside its 1-1.5x target.
Organic revenue grew 7.2% with 96% client retention, new business wins rose 14% year on year to $4.1bn, and mobilised net new business growth was 3.8% in H1 and 4.2% over the last 12 months.
On a statutory basis operating profit was $1,605m with $234m of non-underlying acquisition-related charges.
The board declared an interim dividend of 25.5c per share, an increase of 13% versus the prior year.
"We have great momentum across the business, driven by excellent new business wins, high levels of client retention and margin progression in both regions," Dominic Blakemore, Group Chief Executive, said.
Management will present the half-year results in a live webcast today and the group expects to report full-year 2026 results on 24 November.
