Compass FY pre-tax profit and revenue rise
Catering firm Compass Group posted a 5.8% rise in underlying revenue and a small increase in pre-tax profit for the year to the end of September thanks to continued growth in North America and a strong recovery in its European and Japanese businesses.
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Revenue came in at £17.8bn, while pre-tax profit rose 1.3% to £1.16bn.
Operating profit increased to £1.26bn from £1.21bn and the group declared a final dividend of 19.6p per share, bringing the total dividend for the year to 29.4p, up from 26.5p the previous year.
Chief executive Richard Cousins said: “Our expectations for 2016 are positive and unchanged. The pipeline of new contracts is strong, and the savings from the restructuring, together with the margin improvement in the rest of the group, are expected to offset the impact of lower volumes and pricing pressures in our Fast Growing & Emerging region.”
Compass said the North American business saw organic revenue growth of 7.9%, driven by good new business wins and solid retention rates.
Organic revenue growth in Europe and Japan was 1.9% in the full year and nearly 3% in the second half, driven by improving rates of net new business, reflecting the investments made over the last two years in the company’s sales and retention teams.