Booming Compass to set new course
Wednesday 11 December 1996
Francis Mackay, chief executive, said: "Our strategy is to grow organically and improve margins through a combination of better local purchasing power and economies of scale."
He was speaking as Compass reported a sharp jump in annual profits boosted by the first full-year contribution from Eurest International as well as the Eurest France and Service America acquisitions.
He said each of the group's divisions had shown good organic growth and margin improvement on a like-for-like basis.
In the UK the healthcare catering market has been particularly strong. In the US the margin rose in line with expectations to 4.2 per cent from 3.9 per cent and there was a good growth of 7.1 per cent in turnover on a like-for-like basis.
In the continental Europe and rest of the world division, the results were boosted by the integration of Eurest. Margins were boosted by increased volumes of food and beverages.
Compass group profits, before an exceptional item of pounds 13m, jumped 56 per cent from pounds 73.2m to pounds 114m in the year to 29 September.
Turnover rose by more than 70 per cent to pounds 2.65bn and the dividend was raised 13 per cent to 6.6p.
Compass said it did not expect any material impact from the strength of sterling in the current year as over 90 per cent of its key currencies are hedged.
Though the emphasis has shifted to organic growth the company said some smaller "in-fill" acquisitions were still likely. However, management has ruled out deals on the scale of Eurest.
- 1 Planes go hybrid-electric in important step to greener flight
- 3 Antonio Martin shooting: Mayor says there should be 'no comparison' to Ferguson
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...