Compass Group PLC has issued a trading update showing that organic revenue for the first three months to 31 December 2016 grew by 2.8%, in line with expectations.
The company continues to see strong levels of new business wins and good retention rates. Like-for-like revenues increased modestly, with some pricing offsetting weak volumes in its Offshore & Remote sector.
The operating margin moved forward slightly, as efficiencies generated through the group's management and performance (MAP) programme more than offset cost inflation and the investment in the growth opportunities seen in the group.
In addition, the end of the restructuring programme in the Offshore & Remote business also contributed to the improvement in the operating margin in the quarter.
Organic revenue in North America increased by 7%, with very good growth across most sectors. The firm's core Business & Industry, Vending and Higher Education sub-sectors performed particularly well, whilst trading in the oil and gas business continued to be tough.
In Europe, organic revenue was flat as expected. Net new business trends were in line with the last months of FY2016, and like-for-like revenues were unchanged as pricing offset weak volumes in the North Sea and France.
Organic revenue in the Rest of the World declined by 6.5% due to the expected weakness in the group's commodity related business and a challenging environment in Brazil.