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Global profit rise for Compass Group

16 | 05 | 13

Food service organisation the Compass Group saw its global profits grow by eight per cent in the six months up to March 31st this year.

Its pre-tax earnings rose to £611 million, with much of this increase generated by success in emerging markets and North America. Meanwhile, total revenues grew by 4.1 per cent to £8.8 billion. 

Sir Roy Gardner, Compass chairman, stated: "With good levels of organic revenue growth and a further increase in the margin, these results are testament to the ongoing commitment and hard work of everyone at Compass. 

"Our cash flow also remains excellent, which has enabled us to continue to invest in the business, make acquisitions and reward shareholders."

Despite its overall profit growth, Compass saw revenue in Europe and Japan fall by 3.6 per cent to £3.1 billion. However, it did secure a contract to provide a range of services to the Ministry of Defence in the UK. 

The group's retention rates in Europe fell slightly, mainly due to the increased number of business closures and choosing to exit uneconomical contracts.

Richard Cousins, Compass chief executive, stated: "Economic conditions in Europe and Japan remain challenging, but we are executing the action plans we announced last year and improving our operating efficiency significantly.

"This, combined with ongoing efficiencies across the business, has delivered a 15 basis points increase in the operating margin."

The Compass Group is one of the leading food service organisations in the world, using catering equipment to serve billions of meals across the globe.
 
Another company that has reported positive financial results is the Restaurant Group, which runs brands such as Frankie and Benny's and Chiquito. It experienced an 11 per cent rise in total sales for the first 19 weeks of 2013 and a 4.5 per cent increase in like-for-like sales.
 
The company has announced plans to launch between 30 and 35 new restaurants in the UK this year, the majority of which will be Frankie and Benny's sites.ADNFCR-16001031-ID-801586370-ADNFCR


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