Granada eyes acquisitions

Granada is considering a major contract catering acquisition to take it into the US or European market.

Chief executive Charles Allen, speaking after Granada unveiled its annual financial results earlier today, admitted such a move would be logical.

"When you compare us to international contract catering businesses, we run more profitably and have seen greater growth," he said.

Unlike its two major contract catering rivals in the UK, Gardner Merchant and Compass, Granada Food Services does not have any significant overseas interests.

Last month Granada chairman Gerry Robinson said he would like to make one more big acquisition before he retires in four years' time.

Allen added: "We have a good management team in place in each of our businesses and there's an opportunity for senior management to look at the next move. That could be in either of our two core areas - media or hospitality."

Following a major acquisition, Granada would be likely to split itself into two separate stock market-listed companies, Granada Media and Granada Hospitality.

"If we were to do a deal in the next three to five years then we would de-merge the companies," Allen said.