MARKET REPORT: Catering giant Compass gets paid when staff return to the office

Compass Group shares hit an all-time high as the world’s largest catering company cashed in on workers returning to the office.

The FTSE 100 company rose 1 per cent, or 27p, to 2,680p, valuing it at almost £45bn and taking profits for this year to 25 per cent.

The stock has risen nearly 170 percent since its Covid-19 lows in early 2020, when lockdown restrictions closed offices, schools and other buildings, hurting demand for its food.

The latest spike came after Compass, which serves 15 million meals a day or 5.5 billion a year in schools, offices, hospitals, sports venues and government buildings around the world, reported a 10.8 percent increase in its annual revenues to 33 billion pounds.

Profits in the 12 months to the end of September rose 11.7 per cent to just over £2 billion and the company increased its annual dividend by 13.7 per cent per share.

The company, which began feeding workers ammunition in wartime factories in the early 1940s, was listed on the London Stock Exchange in 1988 and joined the FTSE 100 in 1998.

The stock has risen in each of the past 19 years except 2020, when the pandemic weakened it.

“Compass has produced a recipe for reliable growth in an attractive market,” said Derren Nathan, head of equity research at brokerage Hargreaves Lansdown.

It was a choppy day in global stock markets after Donald Trump announced plans to impose tariffs on China, Canada and Mexico, some of the United States’ largest trading partners.

The FTSE 100 fell 0.4 per cent, or 33.07 points, to 8,258.61 and the FTSE 250 lost 0.9 per cent, or 180.61 points, to 20,568.65.

However, aerospace parts maker Melrose Industries led the way, after JP Morgan raised its price target to 850p from 650p and said the stock was “significantly undervalued”.

The shares rose 7.7 per cent, or 40.4p, to 567.6p.

Burberry shares rose 2.8 per cent, or 25 pence, to 925.8 pence – their highest level since June – as their recent rally continued. However, the luxury brand’s shares are still down about a third this year.

per cent Testing and certification company Intertek rose 3.3 per cent, or 150 pence, to 4,662 pence after saying it was “on track” for a strong performance this year.

Shares in utility Telecom Plus gained 2.2 per cent, or 38 pence, to 1,800 pence, as it stuck to profit forecasts for the year despite warning the budget will add £3 million to its profits. annual costs.

Topps Tiles’ annual profits almost halved to £6.3 million as it grappled with a tough home improvement market and warned of “significant” cost pressures in 2025. Shares fell 1.3 per cent, or 0.5p, to 39p.

Sausage maker Cranswick reported a 6.1 per cent rise in first-half revenue to £1.3bn and a 3.8 per cent rise in profits to £90.2m.

With demand strong in the run-up to Christmas, the pork and poultry producer said it expects full-year results to be “in line” with city expectations. But the shares fell 3.8 per cent, or 190 pence, to 4,880 pence.

Commercial property firm London Metric lost 0.3 per cent, or 0.5p, to 190p after profits and rental income rose following its purchase of property investment trust LXi.