Compass, the world’s largest caterer, on Thursday dismissed concerns about its exposure to rising food prices, saying trading in the past five months had been ahead of its expectations and sounding an upbeat outlook for 2008.

In what analysts described as a strong trading update, Compass said it expected organic revenue growth for the six months to March 31 to be just over 5 per cent and forecast a larger-than-expected 50 basis point rise in profit margins.