Catering giant decides it's time to aim even higher

French catering group Sodexho has reported a 43% jump in net profits for the six months ended 29 February 2000.

Its profits for the half year stood at €73m (£45.4m), while sales increased by 22% to €5.27b (£3.2b).

Operating profit climbed 24% to €278m (£172.9m).

Sodexho said strong growth in its hotels and leisure catering businesses had contributed to the steep climb in its first half-year earnings.

It had set a target of increasing net profits by 20% during the current financial year but it has now raised this to 30%.

During the first six months of the year Sodexho won a number of contracts, including one to cater for 2,200 people at five military bases in Edinburgh.

It also won a contract with Shell, based in Aberdeen, to provide the catering at 15 of its remote offshore oil platforms.

Looking ahead to the year ending 31 August 2000, Sodexho predicts its turnover will increase by 18% and its operating profit by 25%, compared with last year.

It had previously set these targets at 8% and 15% respectively.

City analysts said the financial results for the first six months of the year were broadly in line with expectations.