International catering firm Compass Group has reported better than expected results.
The company, which provides food services to UK schools and colleges through its subsidiary Chartwell, said in a trading update that its organic revenues had declined by 1.7% in the first quarter, compared to a 3% fall in the fourth quarter of 2009.
Compass said it was relying on cost cutting and improved margins this year, but would return to growth in 2011.
Analysts at Shore Capital said that "defensive" sectors of the firm's business, such as education, had helped bolster its position.
And broker Evolution described it as a "better than expected performance", with revenues falling less than the 3-4% expected. "The share price has hit a plateau after a strong six months but still offers good value as it trades on a P/E equivalent to its 5-year average low," it said.
Compass supplies food services to schools and universities, as well as healthcare, leisure and corporate organisations, in 55 countries.