Compass Group’s Half Year results for the six months ending 31 March 2022 showed a strong performance, with the world’s largest food service provider hitting 100 per cent of pre-COVID revenues by the end of the period, alongside record new business wins and its highest ever client retention rate.
The Group reports it is continuing to recover strongly from the pandemic and has seen a notable improvement in its Business & Industry and Education services as employees return to the office and students to in-person learning. Recovery in the Business & Industry sector has been helped by more clients using free food and events to entice people back to the office, while there has been an increased uptake in its digital offering.
Dominic Blakemore, Group Chief Executive, said:
“Net new business growth has been excellent, particularly in North America and Europe where we have mobilised a significant number of recent wins and benefited from our highest ever client retention rate.”
He reports that although the Group expects inflation to increase and continue at a heightened level in the medium term, there is a resilient business model in place to help mitigate the challenge. Inflation also provides a further impetus to outsourcing as organisations seek savings and we are capturing this growth opportunity as demonstrated by our record new business wins.
Blakemore continued: “Given our strong first half performance and positive outlook, we are increasing our full year organic revenue growth guidance from 20 – 25 per cent to around 30 per cent. Whilst we are cautious about the inflationary environment, our margin guidance remains unchanged, with full year underlying operating margin expected to be over 6 per cent, exiting the year at around 7 per cent.”
“While investing in future growth, our increasing profit and cash flow continue to reduce leverage, which is now back within our target range. Our strong balance sheet and excellent growth prospects give us the confidence to commence a share buyback programme with up to £500m during this calendar year.
“Looking further ahead, we remain excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels and rewarding shareholders with further returns.”
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