Compass Group (CPG) is the world’s largest foodservice company, with c.7% market share, providing primarily contract food and support services mainly in North America and Europe but with an increasing share in Emerging Markets. CPG has a diverse client base, covering both cyclical and defensive industries, led by Business & Industry (42%), Healthcare & Seniors (18%) and Education (16%). Organic revenue growth was 5.4% in 2010/11 and has picked up from the 3.5% in 2009/10. A GBP 200bn foodservice marketplace, with only c.50% outsourced, represents a considerable opportunity for future expansion. CPG is pursuing both organic growth and add-on acquisitions, particularly in the fast growing support services market now 22% of revenue. Despite food price pressure (34% of operating costs in 2010/11) CPG’ focus on efficiency has improved operating margin the recent years. Financials are sound, with low Net Debt/EBITDA (2010/11: 0.5X), which makes room for a GBP 500m share buyback during fiscal 2011/12 and still have flexibility. Dividend is raised to 19.3p up 10%.