Sodexho celebrates profit growth in UK and Ireland

04 October 2006 by
Sodexho celebrates profit growth in UK and Ireland

Sodexho has returned to positive growth in the UK and Ireland for the first time in three years.

In a pre-trading statement today, the contract caterer said turnover in 2006 was up 4.8% to €1.37b (£924m) - thanks to large contract wins in the NHS, defence and prison sectors.

Its healthcare division saw a 17.8% jump in revenue, while a more modest increase of 3.9% was registered in the business and industry market.

Credit Suisse analyst Karl Green said the figures marked a "distinct turnaround" in Sodexho's fortunes in the UK.

He said: "Its strategy of client retention is paying off and it will move into 2007 with a pretty strong tailwind."

Chief executive Michel Landel emphasised the group's policy of selectivity in the education arena but denied Sodexho was planning a pullout.

"No, we won't exit the market at all. For us education is a very important market and is still very attractive in the medium term," he said.

Landel said group turnover in 2006 would be up by 9.4% to €12.79b (£8.62b), propelled by 9.5% growth in North America and a 23% rise in the rest of the world.

Jamie Oliver forces Sodexho to rethink plans for education>>

Contract caterer Sodexho reviewing education strategy in UK>>

Sodexho posts fall in profits>>

By Tom Bill

E-mail your comments to Tom Bill]( celebrates profit growth in UK and Ireland) here.

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