Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

Compass Group achieves cost saving target of £50m

Compass Group achieves cost saving target of £50m

Compass Group has announced that it has achieved its target of cutting costs by £50m in the financial year which ends on 30 September.

In a trading update, the catering giant also said its UK business was now showing positive signs of stabilising and it was confident it would deliver a similar level of turnover and profitability as the year before.

However, the group said its efforts to strengthen its financial and operational disciplines, while addressing lower margin contracts, would result in a reduced level of overall revenue growth in the near term.

Compass said progress has been made in the education sector, after the Government’s introduction of new nutritional standards at the start of the current school term.

Following the completion of the sale of its travel concessions business, Select Service Partners, in June, the company has now commenced a £500m share buyback programme.

As of 26 September, 54.4 million shares had been bought back at a cost of £139.6m.

The company is poised to embark on a massive restructuring programme, which will see a review of its brand estate, 200 management job cuts and a number of senior executives leaving.

Compass to simply brand simplify restructure >>

Compass faces second US lawsuit >>

Compass Group appoints new UK & Ireland boss >>

Compass Group sells roadside and travel catering business for £1.82b >>

Compass Group’s profits continue to head south >>

By Chris Druce

E-mail your comments to Chris Druce here.

Get your copy of Caterer and Hotelkeeper every week – click here to subscribe and save 25%.

Join the craze and play Sudoku online!
For the latest hospitality news, sign up for our e-mail news alerts.

Start the discussion

Sign in to comment or register new account

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free