Compass Group – the world's largest foodservice company – this morning announced a 5% increase of organic growth revenue. The firm revealed that for the six months before March 31 it made an operating profit of £322m on revenues of £5.6bn. This put profit up 21% on a reported basis and 18% on a constant currency basis. Compass said its margins had increased by 5.7% or 60 basis points and also revealed that earnings per shares were up 44% at 10.8p. Richard Cousins, chief executive, said: 'The Group has delivered a strong set of results as we continue to benefit from the implementation of the MAP (Management and Performance) framework and the tight operational focus it has instilled across the organisation. “We have seen another step up in our margin, with all our geographies contributing to a 60 basis points group wide increase. “Our improved operational performance lifted free cash flow generation by 32%, whilst underlying earnings per share rose by 44%. The group has also strengthened its contract mix by continuing to win high quality new business in key markets.” Chairman Sir Roy Gardner said: “After more than two years of disposals, country exits, restructuring and the roll out of MAP across the business, it is clear that our strategy is delivering value for our shareholders. “We believe that we have a well balanced and sustainable business model which has the capacity to drive continued revenue and margin growth over the medium term. “Balance sheet efficiency (whilst not compromising flexibility) remains a priority and looking forward, we are confident about the second half of the year and the future potential for the business. “With this as the background, we are increasing the interim dividend by 11% and will buy back a further £400 million of our shares over the next 18 months.”

Topics