Compass profit hit by impairment charge

27th Nov 2013 07:06

- Solid full-year revenue growth- Pre-tax profit hurt by impairment charge - Upbeat about future trading, ups dividendCompass, the world's largest catering group, reported solid full-year revenue growth, driven by strong performances in North America and Fast Growing & Emerging.The FTSE-100 caterer for schoolchildren and troops across the world, said revenue increased 4.3% to £17.6bn. Like-for-like (LFL) revenue increased 1.8%. On an underlying basis pre-tax profit rose 8.7% to £1.2bn.On a reported basis pre-tax profit fell to £721m for the year ended September 30th from £789m previously after it was hit by impairment charges. The group said it has taken a goodwill impairment charge of £377m in relation to its business in the UK. Underlying earnings per basic share from continuing operations rose to 47.7p compared to 42.6p a year ago. Chief Executive Richard Cousins 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 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."A full year dividend of 24p has been offered, up 12.7% from last time. CJ