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The food and support services business has announced strong net new business and double-digit underlying operating profit growth in its Half Year results for the six months ended 31 March 2025.
The group says it delivered a strong first-half performance, with underlying operating profit increasing by 11.6%. Organic revenue was up 8.5%, driven by strong net new business growth of 4.4% and client retention rates remained strong at over 96%.
On a statutory basis, revenue increased by 8.8% to $22,568m (2024: $20,744m), reflecting the strong trading performance. Statutory operating profit was $1,476m (2024: $1,420m), an increase of 3.9%.
Investing for future growth, Compass states its has acquired attractive businesses which are helping to expand the company’s addressable market through further sub-sectorisation and use of technology. Following the reshaping of its portfolio, which saw divestments of Chile, Colombia, Mexico and Kazakhstan, Compass says it is now even more focused on core markets in which it has a strong pipeline of future business.
Commenting on the latest trading results, Dominic Blakemore, Group Chief Executive, said: “The Group achieved double-digit underlying operating profit growth driven by strong organic revenue and margin progression across both regions. We are now in the fourth year of net new business growth within our 4-5% target range, supported by an improved performance in Europe and client retention rate of over 96%.
“The market opportunity is very attractive, with first-time outsourcing accounting for 45% of new business wins. Over the last 12 months, we have signed over $3.6bn of new contracts, an increase of 8.5%2 year-on-year, and we have a strong pipeline of future business across all our markets. Our size, and balance sheet strength, give us the most scope in the industry to invest as we further enhance our unique sectorised approach and technology capabilities.
“We have a diverse sector portfolio, wide-ranging client base and significant local purchasing scale. Although not immune to macroeconomic pressures, we are confident in the resilience of our business model, strength of our value proposition and ability to capitalise on outsourcing opportunities.
“This year, we continue to expect high single-digit underlying operating profit growth, driven by organic revenue growth above 7.5% and ongoing margin progression. Longer term, we remain confident in sustaining mid-to-high single-digit organic revenue growth with ongoing margin progression, leading to profit growth ahead of revenue growth.”
