Search
The Caterer

Compass expects healthy boost to profits

27 September 2007 by
Compass expects healthy boost to profits

Compass Group today said 12 months of improving its margins and the retention of existing business will lead to a healthy boost in profit when it announces full-year results in November.

In a trading statement, the world largest caterer said the positive trading of the first six months had continued into the second half of the year with organic turnover growth for the full year expected to be around 5%.

Compass said it also expected to deliver improved profit margins in the 12 months to 30 September with a 60 to 70 basis point increase.

In the first six months of the year a similar improvement in basis points boosted the caterer's operating margin to 5.1%.

Compass said that thanks to its Management and Performance programme it was achieving a much better balance between growth through new contract wins and retention and development of existing deals.

While organic turnover growth in North America should be 6%, around 4% in Continental Europe and 9% in the rest of the world, the company said it expected UK growth and operating profit to be similar to last year's full-year totals of £1.96b turnover and £115m operating profit.

Caterer the company's UK operations would be revitalised and ready to face the challenges of the rapidly changing contract catering market within months after a series of management and structural changes.

GMB protests as Compass sacks employee for wearing a nose stud >>

Eurest wins £1m Asda contract >>

Compass restructure ready ‘within months' >>

Compass Group officially unveils new fine dining brand >>

Compass nets £11m deal at National Ice Centre, Nottingham >>

Compass boss continues drive to refocus business >>

Compass Group achieves cost saving target of £50m >>

By Chris Druce

E-mail your comments to Chris Druce](mailto:chris.druce@rbi.co.uk?subject=Compass expects healthy boost to profits) here.

[The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.