Catering giant Compass has posted better-than-expected first half results as demand for its services in North America help off-set ongoing difficulties in its offshore division due to the slump in oil and commodity prices.
In six months ended 31 March 2016, the group’s revenues rose 5.8% to £9.7bn with operating profits before restructuring costs up 6.4% to £735m.
Organic revenue growth was 5.8%, boosted by an 8.3% increase in North America. In Europe, organic revenue was up 3.7%, whilst the Rest of World grew 5% (excluding Offshore & Remote).
Richard Cousins, Group Chief Executive, said: “Compass has had another strong six months. North America continues to deliver excellent growth. Our business in Europe is growing nicely as we are rewarded for our investment in previous years to accelerate growth in the region. In Rest of World, reasonable growth in Business & Industry, Healthcare & Seniors, Education and Sports & Leisure was partly offset by ongoing weakness in Australia, Brazil and our Offshore & Remote sector.”
He added: “We continue to drive operating efficiencies around the business, which is being reinvested in the growth opportunities we see. The savings from the restructuring are starting to come through, and are offsetting the weakness in Offshore & Remote and some emerging markets. Therefore, margins pre-restructuring were flat.”
“Our expectations for FY 2016 are positive and unchanged. Our pipeline of new contracts is encouraging and our focus on organic growth, efficiencies and cash gives us confidence in achieving another year of delivery.”