The world’s largest contract caterer, Compass, is reported to have made half yearly profits much ahead of expectations. Strong demand from global healthcare and education organisations for its services coupled with weakening of pound helped it in delivering profitability.

Compass, operating in 55 countries, informed that fall in its UK business was more than offset by the buoyant revenue growth in Australia, North America and other countries. The UK business was down due to decline in corporate hospitality in leisure sectors and automotive industry.

According to its group chief executive, Richard Cousins, the UK sales were affected largely due to suspension of operations by the automotive industry, its major customer in the UK and the snow fall in February. He added that Compass signed a landmark 10 years deal worth £500 million with Jockey Club, the operators of 14 UK racecourses, to provide food services and still had good prospects of new global business.

Compass is expecting its like-for-like sales, organic and new business growth to touch 2.5% over 6 months to March, 31. Its underlying revenue in healthcare, education and remote site sector is performing robustly.

Compass is expecting favourable impact of £70 million on its operating profits due to weakening of sterling against dollar, although its overall UK revenues are expected to decline by 4%. It is also expecting operating margins to improve 50 basis points, as a result of strong performance by all its 4 regions over the half year.

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