Compass Group Soars: 7% Growth Driven by New Business

Compass Group has reported another strong quarter, with its third-quarter trading update highlighting organic revenue growth exceeding 7%. The company successfully maintained its client retention rate at 96% during this period. Group Chief Executive Officer Dominic Blakemore noted that net new business growth accelerated back into the company's targeted 4% to 5% range. This positive momentum indicates Compass is on track to achieve this level of net new business growth for the fifth year in a row, potentially surpassing GBP 2.2 billion.

Blakemore attributed this consistent growth to the company's sector-focused model, disciplined execution, and robust client demand. New business wins saw a significant increase of 16% year over year, totaling GBP 4.3 billion over the last 12 months, with approximately half of these wins representing first-time outsourcing agreements. The business and industry sector was a standout performer, contributing double-digit organic growth and over GBP 2 billion in new business wins.

Growth was also evident across other key sectors, including education, healthcare, and sports and leisure. Compass reported a record sales season in U.S. education and significant wins in healthcare, with six of the company's top 20 largest wins originating from this sector. International sports and leisure demonstrated double-digit growth, driven by demand for premium fan experiences. Executives anticipate further acceleration in net new business growth in the fourth quarter.