Chris Morris, sales and marketing director for Compass's leisure and hospitality division, said Compass had gained business from more companies which, with tighter budgets, were choosing to entertain fewer clients at "crown jewel events" such as the Grand National and Cheltenham race meetings. In a move to drive sales, Compass has bought three specialist hospitality agents, All Leisure, Peter Parfitt Sport, and Langston Scott in the past 12 months.

At the Grand National, corporate hospitality sales were up 10% and public sales from Compass's mobile units rose 27%, while Payne & Gunter's bookings for the forthcoming Hampton Court Flower Show and Henley Festival in July have more than doubled, the company reported.

Caroline Howe, sales and marketing executive at Artizian Catering Services, said its clients had been "very wary because of the war", but said it was normal for companies to tighten the reins before the end of the financial year.

Artizian, with annual sales of £5.7m in 2001-02, has 24 clients in Greater London, including Alfred Dunhill, Sotheby's, Ogilvy & Mather, and Weber & Shandwick.

At Blue Strawberry, financial controller Jason Witney said clients such as Merrill Lynch and Barclays had cut their hospitality budgets, and were either doing events in-house or using cost-cutting measures such as arranging drink expenditure themselves.

The company's regular business from private clients throwing dinner parties, property launches, and weddings had not been affected by the war, but Witney added: "People are cautious. We're doing quotes galore, but clients tend to confirm at very short notice, not paying the deposit until two weeks before the event."

Chris Morris, sales and marketing director for Compass's leisure and hospitality division, said Compass had gained business from more companies which, with tighter budgets, were choosing to entertain fewer clients at "crown jewel events" such as the Grand National and Cheltenham race meetings. In a move to drive sales, Compass has bought three specialist hospitality agents, All Leisure, Peter Parfitt Sport, and Langston Scott in the past 12 months.

At the Grand National, corporate hospitality sales were up 10% and public sales from Compass's mobile units rose 27%, while Payne & Gunter's bookings for the forthcoming Hampton Court Flower Show and Henley Festival in July have more than doubled, the company reported.

Caroline Howe, sales and marketing executive at Artizian Catering Services, said its clients had been "very wary because of the war", but said it was normal for companies to tighten the reins before the end of the financial year.

Artizian, with annual sales of £5.7m in 2001-02, has 24 clients in Greater London, including Alfred Dunhill, Sotheby's, Ogilvy & Mather, and Weber & Shandwick.

At Blue Strawberry, financial controller Jason Witney said clients such as Merrill Lynch and Barclays had cut their hospitality budgets, and were either doing events in-house or using cost-cutting measures such as arranging drink expenditure themselves.

The company's regular business from private clients throwing dinner parties, property launches, and weddings had not been affected by the war, but Witney added: "People are cautious. We're doing quotes galore, but clients tend to confirm at very short notice, not paying the deposit until two weeks before the event."