Compass Group reports stable profits despite fall in revenue
Compass Group has seen revenue fall 4.5% but maintained flat operating profit for the six months to 31 March 2010.
Revenues in the UK and Ireland were £897m, down from £939m for the same period in 2009. However a string of new business wins combined with continuing efforts to "streamline the back office" and improve productivity has resulted in operating profit remaining stable at £54m.
Richard Cousins, chief executive officer, said that Compass has delivered another strong performance in a challenging environment. "As we look forward we will retain our relentless focus on efficiency, but at the same time we are laying strong foundations for the future of the Group," he said.
Compass has won significant new contracts across all sectors. In particular, the business and industry sector was boosted by a £25m new contract for Restaurant Associates to provide catering and hospitality services at the UK's largest insurance firm Aviva.
A £34m win at Sheffield United's Bramall Lane stadium and a £50m extension with Chelsea Football Club has helped Compass' sports and leisure sector maintain growth, while £50m of new business at King's College Hospital, London, and the Queen Elizabeth Hospital in Birmingham has helped the healthcare division grow like for like volume.
Compass Group's global business saw a 14% rise in pre-tax profits to £462m. The group said that while it expects economic conditions to remain challenging in the second half of the year, the combination of strong new business pipeline and stabilisation in like-for-like volumes should see it deliver modest organic revenue growth.
Chairman Sir Roy Gardner said: "It is a testament to the strength of the Group that whilst the economic background has remained uncertain the business has displayed strong operational discipline and consistently generated momentum in profitability.
"There are multiple opportunities for the business to develop and we are positioning ourselves to take advantage of the significant growth opportunity in our core food and fast growing support services markets in both developed and emerging countries."
Compass sitting pretty on £600m as Elmo departs >>
Restaurant Associates wins £25m contract with Aviva >>
Compass nets £34m contract with Sheffield United >>
Compass buys French caterer Caterine Restauration >>
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