Sodexho sees revenue grow 4.6%

That represents a revenue figure of £9.28 billion, which is actually an 8.4% rise on the figure for 2006, but drops to 4.6% after allowance is made for the impact of currency changes and acquisitions. The sales figure for its UK and Ireland operation was £1.02 billion, a jump of 6.1% on the 2006 total. The strength of the pound, though, means that the total year-on-year change is an increase of 7.7%. Chief executive Michel Landel said: "For the second consecutive year, organic growth improved two percentage points over the prior year. "This excellent performance demonstrates acceleration in all our client segments. Client retention was close to 94%; comparable unit growth was around 5% and the business development rate of new contract awards remained high at about 9%." He said this meant operating profit for 2007, excluding the impact of currency variations, should be in the range 12%-15%. In the UK and Ireland the business and industry (B&I) sector registered growth in sales of 6.8% on the back of what a spokesman called "relatively stable demand from corporate clients". It was also helped by the full-year impact of defence contracts awarded in 2006, such as the Catterick Garrison and the Royal Navy Base support contract, and the "robust activity levels" at leisure events this summer like Royal Ascot and the World Scout Jamboree at Chelmsford. However, the healthcare and care catering sector showed even better organic growth at 7.9% based on improved client retention and the "full ramp up" of contracts opened in 2006, in particular private finance initiative (PFI) contracts which have now reached normal activity levels. There was, though, disappoint for the caterer in the UK education sector, with sales at £104 million down 1.2% on 2006. Sodexho Alliance will present its full 2007 results on November 15th. For more details visit www.sodexho.com