Compass profits increase while Sodexho stutters
Compass Group, the world's largest catering firm, this week reported solid half-year rises in turnover and profit but said it would slow its acquisitions and concentrate on developing the businesses it already owns.
The group, whose restaurants and take-aways include Little Chef, Upper Crust, Ritazza and Harry Ramsden's, reported a 23% increase in turnover to £5b for the six months ended 31 March, compared with £4.1b last year. Like-for-like turnover increased by 7% and pre-tax profit by 59.5% to £126m, from £79m in 2001.
In the UK, Compass recorded a 4% increase in turnover to £1.45b, compared with £1.39b last year. Operating profit increased by 10% to £149m, from £135m 12 months earlier.
In North America, turnover was up 37% to £1.8b, with operating profit up 41% to £86m, from £61m last year. Like-for-like turnover growth was 7%.
In Continental Europe and the rest of the world, turnover was £1.75b, up 25% from £1.4b and operating profit increased by 34% to £94m, from £70m. Like-for-like turnover was up 8%.
Chairman Francis Mackay said: "The food service market continues to grow for contract food service providers as the trend toward outsourcing continues. We are the clear market leader and we continue to gain market share."
Meanwhile, Compass's nearest rival, French contract catering company Sodexho Alliance, last week reported difficult trading in the UK for the six months to 28 February. During the half-year its operating margin - the percentage of profits compared with sales - more than halved in the UK, to 2.2% from 4.6% last year. It said this was partly the result of problems it experienced with the management of its UK division.
A company spokesman said there were problems with the management of the UK subsidiary, so changes were made in management in order to return to an increase in trading for the next six months.
Last month David Ford, former chief executive in the UK and Ireland, left the company and was replaced by Mark Shipman, former chief executive of Wood Dining Services.
by Louise Bozec
