Sodexo, the world’s largest services company, has today announced its full year results for the fiscal year ending 31 August 2016. The company has achieved another successful year of growth and record trading in the UK and Ireland.
For the year ending 31 August 2016, Sodexo revenues amounted to €20.2bn, up 2.2% on Fiscal 2105 and organic growth of 2.5% (for full group results click here).
Revenues in the UK and Ireland increased 9.6% to €2bn. Organic growth of 11.3% was in part due to the signficant contribution of the Rugby World Cup contract in the first quarter of the year. However even without the Rugby World Cup effect, the organic growth trend was a solid 5.3% due to the ramp up of many new contracts won in Fiscal 2015 and strong retention during the year.
In the past year, Sodexo has grown its business in the UK and Ireland and has won several private and public sector contracts.
In the defence sector, Sodexo was awarded the Hestia South Regional contract which includes 31 Army and RAF units across southern England and was awarded the contract for the North of England region multi-activity contract. In the the corporate and sports & leisure sectors Sodexo won contracts with Covance, Shell, Scottish Public Pensions Agency, National Trust for Scotland, and the Northern Ireland National Football Stadium at Windsor Park.
In the university and schools sectors, Sodexo was awarded contracts with National Univeristy of Ireland, Galway, Northumbria University, Stoneygate School, Rathmore Grammar School, Brentwood School and University of Nottingham.
In addition to new business successes, Sodexo has achieved a retention rate of over 96% – the fourth year that the company has achieved a rate above 95%. The company has retained or increased business with some key clients such as Dundas and Blair Castles, Oasis Academy schools, Queen’s Hospital in Romford, Royal Botanical Garden Edinburgh, Everton Football Club, Hampden Park stadium, Honda and Virgin Atlantic lounges.
Commenting on the last year, Sean Haley, Regional Chairman for Sodexo UK & Ireland, said:”We are delighted that over the past year we have won some significant new business while at the same time growing our existing accounts and achieving an excellent retention rate. At the heart of our strategy is our mission to improve the quality of life for our clients, customers and employees and this is key to how we do business.”
Since the start of the 2016/2017 financial year, Sodexo has made two acqusitions – five public catering contracts in London from Peyton & Byrne and the acquisition of PSL, a leading procurement provider to the UK hospitality industry.