Compass finds improved revenues and profits

Food service giant Compass Group (LON:CPG) said that revenues for the year ended 31st March rose by 8.8%, driven by a strong performance in North American markets. Operating profits rose by 6.9% as the company maintained its margins while revenues rose.

Chief executive Dominic Blakemore commented: “Compass had a strong first half. Organic revenue growth was 6.6%, driven by excellent growth in North America, a strong performance in Europe, particularly in UK Defence, and good growth in Rest of World.

“We maintained our strong margin whilst absorbing the increased mobilisation costs in Europe from the higher growth as well as strategic investments being made by the business. Our focus on efficiencies and pricing have continued to offset inflation and helped mitigate ongoing volume weakness in the UK and Continental Europe.

“We have continued to invest in the business to support the exciting long term growth opportunities. During the first half we spent £370 million on bolt-on acquisitions, principally in North America. We have made further progress with our disposal programme and have now exited c. 2% of revenues of non-core businesses. This active portfolio management had a positive impact on the margin in the first half“.

Shares in Compass Group rose by 2.83% to 1,777.50p (as of 13:45 BST).