Compass Group reports 5.8% revenue growth to £17.8b
Compass Group has reported growth of 5.8% to £17.8b in underlying revenue for the 12 months to 30 September 2015, driven by strong performances in North America and emerging markets.
The caterer said that growth in Europe and Japan, which in recent years have struggled to match the performance of sister regions, was accelerating, with revenue up almost 3% in the second half of the year, and 1.9% overall.
North America saw an increase in revenue of 7.9% and emerging markets grew by 11%.
"We continue to focus on operational efficiencies and cost reductions, to support the growth we are seeing and improve the operating margin," he added. "As a result, underlying operating profit grew organically by 3.7% to £397m and the underlying operating margin improved by 10 basis points to 7.3%."
Cousins described the reported financial period as "another strong year" for the company overall.
"North America continues to deliver excellent growth. Our business in Europe & Japan is enjoying a strong recovery as we are rewarded for our investment to accelerate growth in the region. Our Fast Growing & Emerging region continues to perform well despite lower volumes and pricing pressures in the Offshore & Remote sector, and in some emerging markets.
"We continue to drive operating efficiencies around the business, which we are partly reinvesting in the growth opportunities we see across the group. Excluding the £26m of restructuring costs announced in July, underlying operating margin for the group improved by 10 basis points."
He said the company's expectations for 2016 remain positive and unchanged and added that the pipeline of new contracts is strong.
In July, Compass Group announced ongoing plans to restructure elements of its business - including plans to reduce its cost base in the offshore and remote sector and emerging markets. At the time, it said this would cost around £20m-£25m in 2015 and 2016 and impact significantly on its operating margin for these years.
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