UK caterer Compass, which has significant Irish operations through its Eurest subsidiary, today saw its share price stumble 25% on the FTSE100 after it said future profits would be hit by a raft of factors and reported disappointing trading over the summer.
The world's largest catering firm said that 'for 2004 and onward' operating profit would fall by £30m sterling.
Compass made the disclosure in a pre-close statement before results for the year to September 30 are released on November 30.
The company blamed the poor profitability of school food contracts after Local Education Authorities cut meal budgets, higher distribution costs and start-up costs for new contracts and weak trading at some of its European operations.
It warned profit will be reduced by a further £15m per year from 2005 as it continues to pump money into its pension funds.
The Compass Group employs around 1,500 people at 160 locations in Ireland through the Eurest workplace catering firm.
