Interim results announcement for the six months ended 31 March 2013
Delivering sustainable growth and further efficiencies
|
|
Underlying |
Year on year change |
Reported |
|
Revenue |
£8.8 billion |
+4.1% |
£8.8 billion |
|
Operating profit |
£650 million |
+6.6% |
£615 million |
|
Profit before tax |
£611 million |
+8.1% |
£575 million |
|
Earnings per share |
24.5 pence |
+10.9% |
23.1 pence |
|
Free cash flow |
£386 million |
+4.9% |
£343 million |
|
Interim dividend per share |
8.0 pence |
+11.1% |
8.0 pence |
Good start to the year with continued revenue growth and further efficiencies.
- Reported revenue up 4.4% year on year, on a constant currency basis, including impact of acquisitions and disposals.
- Organic revenue growth of 4.1% (including negative Easter impact); 4.8% on a comparable working days basis.
- Operating profit margin increased by 15 basis points to 7.3%.
North America and Fast Growing & Emerging generating excellent growth; European action plans on track.
- Organic revenue growth in North America of 8.2%; Ascension Health contract expanded and Texas A&M fully mobilised.
- Fast Growing & Emerging organic revenue growth of 10.5%, driven by strong levels of new business and like for like revenue.
- Good progress on European action plans to manage difficult economic environment.
Future prospects remain encouraging; overall expectations for the full year are unchanged.
- Healthy pipeline of new business in North America and Fast Growing & Emerging.
- Further operational progress in Europe & Japan to manage economic challenges.
- Longer term, Compass remains well placed to capitalise on significant structural growth opportunities in food and support services globally.
Richard Cousins, Group Chief Executive, said:
"Compass has started the year well. We have generated organic revenue growth of over 4%, reflecting the strength of the performance in North America and Fast Growing & Emerging. Economic conditions in Europe & Japan remain challenging but we are executing the action plans we announced last year and improving our operating efficiency significantly. This, combined with ongoing efficiencies across the business, has delivered a 15 basis points increase in the operating margin. Looking forward, I remain positive about the significant structural growth opportunities in our markets and the potential for further revenue and margin growth".
Sir Roy Gardner, Chairman, said:
"With good levels of organic revenue growth and a further increase in the margin, these results are testament to the ongoing commitment and hard work of everyone at Compass. Our cash flow also remains excellent, which has enabled us to continue to invest in the business, make acquisitions and reward shareholders. I'm pleased to announce that the interim dividend has been increased by 11% and we remain on track to complete the £400 million buyback by the end of this calendar year."
