Compass and Britvic shake off recession

Two major UK companies in the food and drink industry today provided some relief in the business gloom.

Compass, the world's biggest catering group, today reported a sharp rise in profits and said an overhaul of its UK arm was starting to show benefits.

Underlying pre-tax profits for the year to September 30 jumped 33 per cent to £589 million after revenues grew to £11.4 billion - an increase of 5.9 per cent on an organic basis - and the company improved efficiency.

In the UK, operating profits edged up £1 million to £108 million as a new management team ditched loss-making and low margin contracts and focused efforts on improving service and controlling costs.

Major contract wins and renewals have included the Bank of England, Asda and its joint venture contract to provide food service to Royal Mail employees.

Compass said of the UK division: "The restructuring we have seen in the business over recent years is beginning to show benefits."

Shares in the company rose more than 5 per cent after chief executive Richard Cousins said the new financial year had started well, with an encouraging pipeline of future sales.

He added: "We are continuing to deliver good organic revenue growth and operating efficiency. In the context of a more challenging economic environment we are not complacent."



Meanwhile, the soft drinks maker Britvic reported a 14 per cent increase in full-year pretax profit and said each of its key brands had gained market share, outperforming the broader market.

Britvic, whose brands include Tango, Robinsons squash, and R Whites lemonade, said pretax profit for the year to Sept. 28 was £ 70.1 million compared with £61.3 million the previous year.

That was at the top end of expectations which ranged between £59 million pounds and £71 million pounds, according to a Reuters Estimates poll of nine analysts.

"This is a strong performance achieved despite very challenging trading and cost environments," said Chief Executive Paul Moody.

Britvic, which is Britain's second biggest soft drinks maker behind Coca-Cola Enterprises, said it had seen particular growth in Great Britain from Robinsons and its Fruit Shoot juice drink, as well as Pepsi, which it has the rights to sell in the UK and Ireland.

Sales had also been boosted by new launches such as the Gatorade sports drink, Drench water, and Pepsi Raw, a new cola drink, it said.

Britivic said conditions in the soft drink market had been tough at the beginning of the new financial year, but it had been reassured with its performance since the year end.

The company is paying a final dividend of 8.8p per share, making a total dividend of 12.6p, up 14.5 per cent.

PROMOTED VIDEO
News
Teeth should be brushed twice a day to prevent tooth decay
education
News
Bryan Cranston as Walter White, in the acclaimed series 'Breaking Bad'
news
Sport
footballChelsea 6 Maribor 0: Blues warm up for Premier League showdown with stroll in Champions League - but Mourinho is short of strikers
News
Those who were encouraged to walk in a happy manner remembered less negative words
science
Arts and Entertainment
Princess Olga in 'You Can't Get the Staff'
tvReview: The anachronistic aristocrats, it seemed, were just happy to have some attention
News
Renee Zellweger as Bridget Jones
i100
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech

Board creates magnetic field to achieve lift

News
There have been various incidents of social media users inadvertently flouting the law
news

Life and Style
Stack ‘em high?: quantity doesn’t always trump quality, as Friends of the Earth can testify
techThe proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
Sport
CSKA Moscow celebrate after equalising with a late penalty
footballCSKA Moscow 2 Manchester City 2: Premier League champions let two goal lead slip in Russia
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Helpdesk Analyst

£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...

Senior Helpdesk Analyst / Service Desk Co-ordinator

£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...

Senior Pensions Administrator

£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...

Corporate Actions Administrator / Operations Administrator

£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
Ed Sheeran hits back after being labelled too boring to headline festivals

'You need me, I don’t need you'

Ed Sheeran hits back after being labelled too boring to headline festivals
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Anderlecht vs Arsenal: Gunners' ray of light Aaron Ramsey shines again

Arsenal’s ray of light ready to shine again

Aaron Ramsey’s injury record has prompted a club investigation. For now, the midfielder is just happy to be fit to face Anderlecht in the Champions League
Comment: David Moyes' show of sensitivity thrown back in his face by former Manchester United manager Sir Alex Ferguson

Moyes’ show of sensitivity thrown back in his face... by Ferguson

Manchester United legend tramples on successor who resisted criticising his inheritance
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Lonely Planet’s Best in Travel 2015

UK city beats Vienna, Paris and New York to be ranked seventh in world’s best tourist destinations - but it's not London