Strong performance in UK defence and sport & leisure contracts helped increase Compass Group’s annual revenue by 6.4% to £25.15b.
The figure for the year to 30 September 2019 was ahead of the company’s target growth of 4-6% and was despite a volume weakness in UK business & industry contracts. Operating profit across the group was up by 4.7% to £1.88b.
Worldwide growth was led by North America, where a 7.7% increase in organic revenue was reported. Europe was up by 4.1% and the rest of the world – driven by Turkey, Indian and Spanish-speaking Latin America – increased by 4.3%.
Dominic Blakemore, group chief executive, said that despite a good performance for the year, the company was not immune to the macro environment. “Deteriorating business and consumer confidence in Europe has impacted our business & industry volumes, new business activity and margin. Given these trends, we are taking prompt action in Europe and certain rest of world markets to adjust our cost base. As well as offsetting short-term margin pressures, by taking this action from a position of strength, we will be better placed to capitalise on future growth opportunities.
He added that expectation for the company in 2020 are positive, while remaining cautious on the macro environment in Europe, with expected organic growth of “around the mid-point of our 4-6% range”.