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Catering and services supplier Elior posts 5.6% sales growth

5th Jun 2015 - 11:38
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Elior Group UK results Philippe Salle
Abstract
Global catering and support services provider Elior has announced revenue growth of 5.6% to €2.8bn (£2.04bn) over the six months ended March 31st 2015 as against the same period in 2013-14.

Attributable profit for the period was €40.2m (£29.3m), nearly double the figure of €20,8m from last year.

The group’s acquisition of London-based B&I contract caterer Lexington in October 2014 generated additional revenue growth of 2.8% by contributing £18.1m.

The results also showed Elior UK’s performance in the education sector helped offset a slowdown in the group’s operations in Italy, while in the healthcare market British efforts were part of a strong performance internationally.

Elior reported signing a number of major contracts in the period, including private retirement homes and Royal Air Force bases in the UK.

Philippe Salle, Elior's new chairman and chief executive officer, said: "The group's first-half performance was in line with our forecasts with organic growth at 2.8% and EBITDA margin slightly down year-on-year.

“For the second quarter we saw sustained business development despite our more selective approach to contracts (particularly in Italy), with solid organic growth of 2.2% and a slight year-on-year increase in EBITDA margin.

“In the first six months of 2014-2015 we continued to seize numerous growth opportunities in our various markets while keeping tight control over costs.

“We expect our business momentum to be strong in the second half of 2014-2015, thanks to the favorable impacts of the cost efficiency plans put in place in late 2014 and the ramp-up of new concessions during the high season.

“We are confident that we will be able to meet our full-year targets and our bottom line will be boosted by the positive effects of the accretive refinancing operations we have carried out since the beginning of the fiscal year.”

Salle was appointed chairman in March this year, going on to become also chief executive in April.

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Written by
PSC Team