RESULTS > INTERIMS > WEDNESDAY 11 MAY

Compass (CPG) £12.11

Investors should expect to see strong revenue growth when food service giant Compass (CPG) releases its first half results on 11 May.

The £20 billion cap delivered a solid first quarter trading statement on 4 February, with organic revenue up 5.9% driven by new business and good retention rates. Modest pricing and some volume improvement resulted in positive like-for-like sales.

The robust expansion in North America and improvement in Europe is expected to continue throughout 2016.

The rest of the world region is still being affected by the ongoing restructuring of Compass’ offshore and remote sector. The stock hit a low of 991p in summer 2015 when it warned the restructuring, which aims to reduce costs, would weigh on margins.

Compass trades on a 2016 price to earnings ratio of 21.5, which reflects its relative defensiveness and high historical returns. Full-year pre-tax profit is expected to grow by 3.3% to £1.2 billion, according to Panmure Gordon. (EP)