Compass reports annual profits up by a third
Compass catering company announces annual profit rise of more than a third
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By Darren Estwick. |  |
Wednesday, 25, Nov 2009 10:47
By Sarah Garrod.
Compass, the catering company, has reported an annual rise in profits of more than a third.
The company, which provides food and support services to schools, hospitals and offices, said the pre-tax profit rise of 36.6 per cent, to September 30th, was a result of cost cutting.
Richard Cousins, chief executive, said: "Compass has delivered an excellent performance in a challenging environment. Consistently high levels of net new business and a step change in operating efficiency, generating £161 million of savings, have contributed to a further £100 million of profit growth and 60 basis points of margin growth.
"Whilst in the short term the prevailing economic conditions are likely to continue to impact organic revenue growth, the pipeline of new business looks strong.
Furthermore, the considerable potential to deliver ongoing efficiencies underpins our expectation of further progress in the margin."
Compass, which employs more than 388,000 employees, was recently buoyed by a contract with Lloyds Banking Group, to provide catering to the group's 78 UK sites for the next five years. Other contracts to UK businesses include the Royal Institution of Chartered Surveyors, BSkyB, National Grid and Heinz.
Reported revenue had grown by 17.5 per cent in the year.
Compass added that, very encouragingly, it had continued to win high levels of good quality new business, at levels consistent with last year.