Avenance goes for growth with extra sales staff

Avenance is set to open a new sales and marketing office in west London. As part of its growth strategy for 2004, the company is creating 14 new sales positions and also recruiting specialists in food innovation, creative design, diet and nutrition, market research, and retailing. This year the company sees the defence sector as a significant area for business growth.

The expansion coincides with Elior, Avenance's Paris-based parent company, forecasting growth in pre-tax profit of between 15% and 25% this year. The group expects overall organic sales growth of more than 4% and says it sees health and education as growth areas and predicts a slight pick-up in the business and industry sector.

In concession catering, the group expects turnover to be boosted by contracts at Roissy-Charles de Gaulle airport's new terminal and the Paris-Expo exhibition centre at Porte de Versailles, both in Paris.

Elior is the largest contract caterer in France and Spain, while the UK accounts for one-tenth of its business. The group reported a 15% rise in pre-tax profit from €57.7m (£40.5m) to €66.2m (£46.4m) on sales up 4% to €2.42b (£1.7b) for the year to 30 September 2003.

Elior won new contracts representing annual sales of g165m (£117m) in 2003.

Performance in the UK was in line with the results. Avenance chief executive Tim West said: "We have met our net profit objectives and our high level of business retention is based simply on serving the best quality food and employing people who have a real passion for what they do."

Contract catering operation teams increased the efficiency of the supply chain and were helped by improved IT systems. Turnover grew moderately (2.3%) and profit margin was up 0.6% to 5.9% compared with the previous year.

Concession catering sales were up by 10%, helped by new UK contracts at Edinburgh Castle and the Royal Festival Hall in London.