Elior UK sees 5% increase in revenue but profits dip
Contract catering company Elior UK has seen a 5% increase in turnover from £281.3m to £295.3m thanks in part to its acquisition in 2014 of Lexington Catering.
Profit before taxation for the year to 30 September 2016 decreased by 7% to £5.5m compared to £5.9m the year previous.
The company's gross profit also decreased by 11% in the last year from £52m to £46m. Operating profit was also down 5% from £6.9m in 2015 to £6.5m in 2016.
Elior UK has over 11,000 employees and is part of Elior Group which operates worldwide. It operates catering contracts across the B&I, health & care home, defence, education, stadia and heritage sectors.
In April this year, Elior UK acquired 100% of the share capital of contract catering company Edwards and Blake, which is based in Norfolk and has a portfolio of contacts in the education, business and industry sectors.
Last year, new business contracts worth £40.3m per annum were signed.
In October 2014, Elior UK acquired Lexington Catering. Lexington Catering is the specialist team for Elior UK's city clients and provides food services in the form of cafes, delis, coffee shops and restaurants.
Elior UK's turnover increased by 5% in 2016, reflecting the acquisition of Lexington. Average sales per outlet on a full year basis increased by 1.2% in 2016.
Revenue for Lexington Catering for the year end 30 September 2016 was £38.5m. It made a £2.5m pre-tax profit in the same period.
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