The UK’s largest contract catering group Compass expects a seven per cent hike in its global like-for-like turnover this financial year. The UK market performance will come in slightly lower, with a rise of around five per cent.

Compass is confident that it has ridden difficult market conditions and will continue its recent strong performance. Chief executive Mike Bailey said: "2004 has started well, despite the fact that in many parts of the world the economic backdrop has remained challenging.

"Our new business growth has been strong and the pipeline for the year remains encouraging."

Compass believes its expansion is and will continue to be driven by new business wins, combined with an exceptional contract retention rate of 95 per cent.

The fastest-growing sectors of the market continued to be healthcare, education, defence, offshore and remote-site business, it said.

Big new UK contracts for Compass this year have included:

• A deal for Rail Gourmet UK to provide catering and logistics services for trains operated by First Great Western, which will turn over £6m a year and run until March 2006

• A three-year contract for Scolarest to provide catering and hospitality services at Old Swinford Hospital School in Stourbridge, West Midlands, with turnover of £600,000 a year

• A five-year deal with Perkins Engines at its site in Peterborough, Cambridgeshire, where Eurest will provide catering for 3,000 staff at a turnover of £850,000 a year.

The fastest growing sectors of the market in the UK are healthcare, education, defence, offshore and remote-site business, Compass said.

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