An experimental investigation of the performance of a contra-rotating stage is reported. The influence of factors such as speed ratio of the two rotors, rotor stagger, pitch-chord ratio and axial spacing between the rotors is examined from tests on a 0.66 hub-tip ratio compressor. The study reveals that the performance of a contra-rotating stage is affected by all these factors. Axial spacing between the rotors and the speed ratio of the rotors both exhibit a strong influence on the stalling behaviour of the stage. It has been found that in a stage with close axial gap, rotating stall on the first rotor is suppressed if the second rotor is contra-rotated at a speed 50 per cent faster than the first rotor. This unique advantage of contra-rotation is not obtained if the axial gap is large. Measurements of sound pressure level are also reported to highlight the high noise problems associated with a contra-rotating stage.