Strong US trading lifts Compass Group to first half rise in profits
COMPASS Group, the world’s biggest caterer, posted a 7.7 per cent rise in first half profit yesterday, as strong trading in North America and emerging markets helped dampen the impact of challenging economic conditions in Europe.
The group, which provides meals for the likes of office workers, soldiers and school children, said underlying pre-tax profit for the six months to 31 March was £572m. Revenue rose 8.6 per cent to £8.6bn, up from £7.9bn for the same period in 2011.
Compass said organic revenue in its core North American region grew by seven per cent supported by growing outsourcing trends in healthcare and education sectors.
Revenues grew 12.4 per cent in its emerging markets unit, helped by a strong resources sector in Australia, where it provides food, accommodation and cleaning services to mining firm Rio Tinto.
“Looking forward, whilst we are not immune from the current economic difficulties in Europe, the fundamentals of the business are strong and I remain excited about the opportunities for future growth and margin progression,” chief executive Richard Cousins said.