Monday office work return boosts Compass profits

Office workers and commuters walking through Canary Wharf in London during the morning rush hour (PA) (PA Wire)

Catering group Compass today hailed the return of workers to the office on Mondays, which allowed the business to up its full-year guidance after profits grew by 20% in the six months to 31 March.

Revenue topped $20 billion (£16 billion), with the strongest growth coming from its office canteens arm, which brought in $7.7 billion, thanks to “the continued return to office trend”.

CFO Petro Parras said much of the growth came on Mondays, with levels of activity on the first day of the working week now similar to Thursdays. Transaction volume is still significantly lower on Fridays, but Compass noted that those who did some in were spending more, suggesting a rise in Friday office workers treating themselves.

Compass continues to do most of its business in North America, which has led to speculation it could sell its shares in the US, but it saw strong growth in Europe during the six month period. It put that growth down to “investment and best practice sharing”, as well as quitting smaller eastern European markets where it was struggling.

Steve Clayton, head of equity funds at Hargreaves Lansdown, said: “Historically, the group has struggled on the Continent, with too much exposure to declining industries and ill-structured contracts.

“Current performance looks much better and Compass is transferring best practices from the rest of the group to build a stronger European division.”

The business - which also provides the food for the Championships at Wimbledon, and will bring Michel Roux’s Le Gavroche to the All-England Club for this year’s tournament - is also looking at dealmaking opportunities, saying it plans to invest in “strategic in-fill M&A”.

The business raised its guidance for underlying profit growth to 15%, from 13.5%.

However, that wasn’t enough to please the market, as shares slid by 3% to 2248p. They’re still up 5% for the year.