Airline passengers boost sales for Elior

An increase in passenger traffic in France and Spain this year helped a 4% rise in turnover for French contract caterer Elior.

The group saw overall turnover rise to €2.4b (£1.6b) in the year ended 30 September 2003 from 2.3b (£1.5b) in the previous year.

The greatest increase in sales growth came from its airport business where turnover increased by 12%. It said that it reflected an increase in passenger traffic and the start of new contracts in the new terminal at Roissy, France.

Elior's city sites also showed strong growth, increasing turnover by 10%. This was helped by UK contracts in museums and tourist sites such as its contract at Edinburgh Castle, expected to give Elior €15m (£10.4m) in turnover over six years.

Elior said that the business and industry sector, particularly in the UK and the Netherlands, continued to be affected by a difficult economic environment. Here, sales dropped by 1%.

In education, turnover increased by 5.8%, with a significant boost in the fourth quarter of 12.7%.

The group, which will post its definitive results in December, said that it expects an operating margin of 5.6% of turnover for the year.

Next year, it expects to generate sales growth of between 4% and 6%.

by Christina Golding

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