Compass has released its annual results for the year ended 30 September 2013.
Richard Cousins, Group Chief Executive, said:
“Compass has maintained good momentum during the year.
“High levels of new contract wins in North America and Fast Growing & Emerging have driven good organic revenue growth of over 4% and our operating margin has increased by 20 basis points to over 7% for the first time.
“Economic conditions in Europe & Japan remain challenging, but the actions we’ve taken have enabled us to manage these and improve profit and margins. Looking ahead, I remain positive about the exciting structural growth opportunities in all of our markets and the potential for further progress.”
Sir Roy Gardner, Chairman, said:
“I’m delighted to report another successful year for Compass, with good levels of growth in organic revenue, margin and cash flow. That has enabled us to continue investing in the business, at the same time as rewarding shareholders.
“Given our confidence in the outlook for the Group, I’m pleased to announce that the full year dividend has been increased by nearly 13% and we’ve announced a further share buyback of £500 million, which we expect to complete in the 2014 calendar year.”
Organic revenue growth of 4.3%, driven by strong performances in North America and Fast Growing & EmergingSustained momentum in organic revenue growth and operating margin
- Operating profit margin up 20 basis points; now over 7% for the first time
Good progress across all three regions
- Organic revenue growth in North America of 8%, with significant contribution from Ascension Health and Texas A&M contracts
- Actions taken in Europe successfully mitigating ongoing economic challenges; 60 basis points increase in the operating margin
- Strong levels of new business in Fast Growing & Emerging delivered organic revenue growth of 10.2%
Confident in future prospects and ability to deliver further shareholder value
- Healthy pipeline, particularly in North America and Fast Growing & Emerging
- New £500 million share buyback announced for 2014; £1.4 billion capital returns in three years
- Compass remains well placed to capitalise on exciting structural growth opportunities in food and support services globally