Contract Catering group Compass has played down the problems of its nearest rival Sodexho - which has announced that it expects operating profits to fall - saying that its problems are company specific and not universal to the industry.

Compass remains positive about hitting targets for the year, with its six month interim results showing turnover was up 23 per cent to £5bn, and announced the decision to focus on organic growth to drive up returns after a £2bn string of acquisitions over the past year and a half.

Michael J Bailey, chief executive, said; 'We expect a reduction in acquisition activity going forward and with our focus on organic growth coupled with the integration of past acquisitions we remain confident that our expectations of organic turnover and margin rate increases will be delivered.'

Bailey also denied that the company is considering buying the Burger King chain - for which owner Diageo is seeking a buyer - or food supplier Brake Bros.

The Compass group, which owns brands such as Little Chef, Upper Crust and Harry Ramsden's, saw its share price fall 16p to 435p, a decrease it blames on 'background noise' in the industry, which was contributed to by Sodexho. Details: www.compass-group.co.uk