Sodexho's second profits warning

French-owned contract caterer Sodexho has issued its second profits warning this year following a "rapid deterioration of profitability in the UK" and "accounting anomalies".

The company said in a statement: "After becoming aware of the problems at Sodexho Land Technology, our grounds maintenance subsidiary, we changed the Sodexho management team in the UK in April 2002.

"In addition, we have continued to examine the UK's accounts and have called in an independent expert to strengthen our analysis and internal audit process.

"We have found serious errors of management as well as accounting anomalies. The impact of these management errors has been more serious and sudden because they have occurred in a difficult economic environment.

"In addition, our statutory auditors in the UK have not been sufficiently vigilant."

The company will report its year-end financial results in November.