Compass Group sees profit up 18%
The world’s largest catering firm has revealed that full year profits to September have risen by 18% to £22.9 billion. That’s up from £19.9 billion the previous year. This uptick in profitability is being driven, in part, by a reversal in the fortunes of its commodities-linked offshore business, which was hit hard by troubles plaguing the oil industry in 2016.
Revenues from the company’s North American business, where clients include Google and Twitter, were up by 7% on a constant currency basis, contributing the bulk of the Group’s positive performance for the year. By contrast, Europe saw a sales rise of just 1.5%, and the Group’s “rest of world” unit saw sales fall by 2.5%.
Meanwhile, the Group’s offshore business, which caters and cleans at oil refineries and gas extraction and mining sites, continued its decline: down 14% over the second half of the year. This, nonetheless, represents a reversal from the previous year, where revenues fell much more dramatically. The Group said that “the rate of decline has slowed in recent months, and we expect this trend to continue into 2018.”
This set of financial results is the last that Compass’ current CEO, Richard Cousins, will oversee. In his 11-year tenure as chief, the Group has seen its share price appreciate by 840%. In a statement, he chose to talk about the Group’s future rather than its past, saying:
“We remain excited about the significant structural growth opportunities globally and the potential for further revenue growth, margin improvement, as well as continued returns to shareholders.”
Dominion holds Compass group in its Global Trends Managed Fund.
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