New deals swell Granada coffers

By Christina Golding

GRANADA Food Services has agreed to buy Cheshire-based contract caterer Carlton Support Services in a deal that will give the sector giant more than 65 contracts worth an annual turnover of £13.5m.

Carlton, which specialises in business and industry contracts, was formed in 1992 by former in-house catering managers from ICI.

Managing director John Salisbury said that, apart from six redundancies, the current team will continue to manage the business.

Granada has also secured the contract to run 90 in-store public restaurants for Littlewoods, the retail chain, in a deal worth around £53m in annual turnover.

The seven-year contract was described by Granada as the UK's largest multi-site catering contract.

Reporting interim results for the half-year to March 1998, Granada's profits from contract catering and restaurants were up by 25% to £102m. Hotels reported a 15% increase to £124m.

Chairman Gerry Robinson confirmed that the group is in talks to sell the Russell, Cavendish and St George's hotels in London, understood to be worth around £145m. He also signalled an interest in forming international marketing alliances in the hotel sector. Overall, the group saw pre-tax profits rise by 13% to £274m, with turnover up by 12% to £1.9b.