Compass: Weak Sterling Will Boost Fiscal Year Earnings
February 02 2017 - 3:10AM
Dow Jones News
By Tapan Panchal
LONDON--Compass Group PLC (CMPGY) said Thursday that the weak
pound would support fiscal 2017 earnings, as it reported 2.8%
organic revenue growth for the first quarter of the fiscal
year.
The British support services company said if current foreign
exchange spot rates continued for the remainder of the financial
year, this would boost operating profit by 186 million pounds ($234
million) and revenue by GBP2.3 billion.
Currency movements had a positive impact on revenue and profit
for the three months ended Dec. 31, 2016, of GBP924 million and
GBP74 million, respectively, the company said.
Compass Group, which provides cleaning, property management and
contract food services, also attributed the organic revenue growth
to strong levels of new business wins and retention rates.
It has retained its positive outlook for fiscal 2017.
-Write to Tapan Panchal at tapan.panchal@wsj.com
(END) Dow Jones Newswires
February 02, 2017 02:55 ET (07:55 GMT)
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