MARKET REPORT: Compass Group looks north as workers return to the office

Compass Group is cashing in on workers returning to office canteens and moving away from more expensive High Street restaurants.

The world’s largest catering company, which produces fresh food for everything from sporting events to schools and hospitals, has benefited from more people returning to work after the pandemic.

Compass said employees are buying meals in the office instead of eating at restaurants, which have raised prices to combat high inflation.

That helped the major firm raise its annual forecast for the second time this year.

It now expects profit to rise more than 15 percent in the 12 months to the end of September, while revenue should grow by more than 10 percent.

This is higher than its previous forecasts. The improved outlook came after revenue rose by more than a tenth in the third quarter to the end of June.

This was above the 9.5% rise analysts had forecast for the three months. The shares gained 4.5%, or 99 pence, to 2,290 pence.

The FTSE 100 fell 0.38%, or 31.41 points, to 8,167.37 and the FTSE 250 fell 0.22%, or 47.19 points, to 21,091.49.

Mining stocks fell into the red as copper prices weakened amid concerns about weaker demand from China.

Glencore fell 2.2%, or 9.95 pence, to 433.4 pence, Rio Tinto fell 1.5%, or 72.5 pence, to 4872 pence, Anglo

The US dollar lost 2.2%, or 49.5p, to 2,184.5p and the Antofagasta fell 1.1%, or 22p, to 1,913p.

Airline stocks were mixed after a sell-off on Monday fuelled by Ryanair’s warning that airfares will be “materially lower” this summer than last year.

Wizz Air fell 2.2%, or 45p, to 1,985p, EASYJET rose 0.3%, or 1.4p, to 427.7p and British Airways owner IAG added 0.4%, or 0.7p, to 164.9p.

Beazley investors breathed a sigh of relief after the insurer insisted it was not affected by the global IT disruption caused by a botched upgrade by US cybersecurity firm CrowdStrike.

The London-listed company maintained its forecast for the year. Shares rose 1.9%, or 12 pence, to 662 pence.

Recruitment firm S Three said its net fees fell 7% to £188.7m in the six months to the end of May. Shares rose 1.1%, or 4.5p, to 422.5p.

Mitie won and expanded public and private sector contracts with companies including British Airways, Aldi and the Home Office. The total value of the outsourcing firm’s contracts reached £2bn in the first quarter to 30 June, up from £1.1bn a year earlier.

Revenue rose 10% to £1.16bn during the period, while shares fell 2.5%, or 3p, to 119.6p.

Brewer Fuller’s has had a “strong start” to the financial year as costs continue to fall. The company, which runs 332 pubs across the UK, said sales rose 5.3% during the 16 weeks to July 20. The brewing group added that profits are also growing as inflation falls, with food and drink costs falling over the past year.