7th Jul 2010 - 00:00
Abstract
Facilities management provider Sodexo may have seen worldwide revenues rise 1.9% in the first nine months of the fiscal year, but its UK operation has seen sales dip by 3.3% over the same period.
Overall group revenue has risen by €144 million in the first nine months of FY 2010 compared to the same period in FY2009 to reach €11.54 billion. Sales in the UK and Ireland, though, fell from €939m to €887m.
Chief executive Michel Landel said: "The global economic environment is volatile and we remain prudent in our outlook.
"However, I remain fully confident in our ability to capitalise on the significant growth potential of our markets, estimated at €780 billion, based on the relevance of our comprehensive service solutions and Sodexo's presence in 80 countries, particularly in the dynamic economies in Asia and Latin America."
In the UK staff feeding sales dropped by 5.1% over the reporting period compared to 2009 (down from €667m to €618m) despite significant contract gains including Heineken, Johnson & Johnson and the Stirling Management Centre.
And the education sector was hit even harder, with sales down by €9m to €92m, a drop of 6.5%, which Sodexo said "reflected continued selectivity in the public sector schools", although the company noted its recent contract gain at Southampton Solent University.
The UK sector that has fared best is healthcare, with revenue rising by 5.6% up to €177m.
Landel adds: "Sodexo expects to achieve an organic revenue growth for FY 2010 of around 2%.
"This slight improvement in outlook for organic growth growth should also increase operating profit by around €10m, so we expect to achieve operating profit between €780m and €800m."
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