UK recovery buoys Sodexho
French catering giant Sodexho surprised the financial markets today with better than expected full-year profit figures, partly thanks to a recovery in the UK.
The company, the world's second largest catering firm, said net income for the year to 31 August was €183m (£128.5m), up from €162m (£113.8m) at the same point last year.
Forecasts had been for net income to be either flat or only slightly up, with the top prediction being €170m (£119.4m).
The company had previously revealed a slight decline in turnover, down by 1.6% to €11.5b (£8.1b).
The increase in profits was put down to an improved performance in the UK and Ireland, where operating profits were up by 35% to €28m (£19.7m).
Lower interest costs and a better tax rate were other factors in the stronger figures, said Sodexho.
Contracts struck during the year in the UK included deals with the bank HBOS, the Scottish Parliament, Stoke Mandeville Hospital and Colchester army garrison.
In a briefing to financial journalists, the company predicted net profits would rise next year by between 7% and 8%.
Looking further forward, it also expects to get a £100m boost from the 2007 Rugby World Cup in France, having secured contracts to provide catering, hospitality services, event organisation and ticket sales.
by Nic Paton
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