Compass pointed in right direction

The financial world might be filled with strife, but folk have still got to eat.

Compass Group, the world's largest catering firm, revealed today that its business continues to grow under the new leadership of chief executive Richard Cousins.

In charge for 18 months, Cousins has shrugged off a scandal involving the United Nations and the fallout of Jamie Oliver's campaign to remove Turkey Twizzlers from school-dinner menus.

A trading update ahead of full-year results in November revealed that revenue is rising at more than 5% over the year while margins have improved despite the soaring price of food.

In the UK, where Compass is a big supplier of food to hospitals and prisons, as well as to schools, business is steady. Here the company's other customers include the Bank of England and soccer giant Manchester United.

But in North America, Japan, Australia and Latin America sales are rising. In these markets the weakness of the pound has helped Compass.

City analysts reckon the company will make a profit of around £560 million for the year to the end of September.

Compass shares were up 4p at 335.75p today despite the slump in the wider market.

The company has used excess cash to buy back £346 million worth of shares so far this year.