Compass has confirmed that it is on track to meet its financial targets for 2004 despite the tough economic environment.
In a trading update for the year up to September 30, the world's largest contract caterers said it would meet its targets of comparable turnover growth of at least six per cent.
Chief executive Mike Bailey said that the economic gloom, notably in France and Germany, had been exacerbated by the decline in travel resulting from the war in Iraq and the Sars Virus.
The company is said to be on track to meets its promise of generating approximately £400 million of cash flow, which enabled it to return £209m to shareholders through a share buyback programme.
Bailey believes that despite the continuing economic uncertainty the trend towards outsourcing of catering, particularly in healthcare and education, made him confident about the coming year's performance.