Revenue for the Group increased by 4.1% on a constant currency basis in the year to 30 September 2014, however when the strengthening of sterling against many of the group’s key currencies is taken into account, overall revenue declined by 2.8%.
In Europe and Japan revenue was down 5.3% to £5.7 billion, a decline from 2013’s £6b, while operating profits were also down 2.6% to £409 million, compared to 2013’s figure of £420m.
Sales in Europe and Japan are worth just over a third, or 33.5%, of the group’s total revenue.
Richard Cousins, group chief executive, said: “Compass has had another good year, with strong growth in North America and Fast Growing and Emerging and further improvement in Europe & Japan. This, combined with our ongoing focus on efficiencies, has enabled us to continue to improve margins.”
The group claims that they have seen good levels of new business in the UK, Spain and across the Nordics. It has reported new contracts with the Ville de Cannes, Philharmonie de Paris and retained contracts with Chelsea Football Club and Somerset House in the UK.
Trends in like-for-like volume rates varied across the Europe and Japan, with rates in the UK, Germany, Netherlands and across Southern Europe improving, but still negative.
Compass also saw operating profits in the region increase by £5m, or 1.2%, to £409m. This increase equates to 20 basis points of operating margin progression to 7.2%
Cousins added: “Our strategy is clear. Food is and will remain our core competence and is backed with some strong support service businesses. All our markets have exciting opportunities and as a result we are investing more resources around the world to deliver strong growth.
“At the same time we remain disciplined with regards to margins. I remain positive about our potential for continuing progress in the years ahead.”
Compass Group is a world-leading food and support services provider operating in over 50 countries.
Compass Group’s full year results presentation can be found at http://www.compass-group.com/documents/FY_Results_Presentation_FINAL_PRINT.pdf