Contract caterer Compass has reported organic revenue in its European arm up 1.2% for the nine months to 30 June, driven by improving performances in the UK and Spain.
Globally organic revenue was up 5.5% for the year to date with margins improving by 10 basis points for the year to date globally and in the Europe and Japan region.
The company said in addition to ongoing restructural activities it continued to ”proactively reduce the cost base in our Offshore & Remote business globally and in some emerging markets”.
It said: ”This incremental restructuring plan will cost around £20-£25 million per year in 2015 and 2016, and will be included in operating profit. With our continued focus on costs and efficiencies, we expect the 2015 full year operating margin for the Group to be flat after these additional restructuring costs. In 2016, the savings, together with margin improvement in the rest of the Group, is expected to offset the impact of lower volumes and pricing pressures in our Fast Growing & Emerging region.
On the outlook for the future, the company said: “We remain excited about the significant structural market opportunity globally and the potential for further revenue growth, margin improvement and continued returns to shareholders.”
