Compass Group: makes progress despite tough market

London / UK. (cg) «Against the backdrop of deteriorating economic conditions, Compass has had a positive first half», said Richard Cousins, Chief Executive Officer of the British Compass Group, in an Interim Results Announcement for the six months ended 31 March.

«We have demonstrated our ability to flex our cost base and respond to more variable demand. Furthermore, the rigorous application of MAP has enabled us to drive further operating and cost efficiencies of over 50 million GBP, helping to deliver another significant step up in profit and margins. Looking forward, the trends in revenue seen in the first half of the year are expected to continue into the second half of the year. The acceleration in the rate of cost efficiencies should enable us to deliver further progress in the second half of the year».

Highlights of the first half of the year: revenue 6,9 billion GBP; underlying operating profit 455 million GBP; underlying operating margin 6,5 percent; underlying earnings per share 0,154 GBP; interim dividend 0,044 GBP; free cash flow 240 million GBP.

Organic revenue growth was 2,6 percent for the first half and constant currency revenue growth, including acquisitions, was 3,6 percent. Encouragingly, the level of new business wins in all sectors has remained strong at 8,5 percent; consistent with last year. As expected, like for like revenue has continued to weaken in parts of the Business + Industry and Sports + Leisure sectors, as clients have reduced discretionary spend on event catering and corporate hospitality and headcounts. However, like for like revenue growth in the Education, Healthcare and Defence, Offshore and Remote Site sectors has remained strong.

Info: «Significant progress in a challenging environment – Compass Group PLC – Interim Results Announcement For The Six Months Ended 31 March 2009» (PDF, 41 pages, 293 KB).