Compass profit jumps 41%

13th May 2009 07:32

Catering giant Compass Group reported a stronger-than-expected 41% rise in half-year profits thanks to new contract wins and cost cuts. The group said it made 'significant progress in a challenging environment' as it reported underlying operating profit of £455m in the six months ended 31 March 2009. Revenue rose 24% to £6.9bn. The level of new business wins in all sectors has remained strong at 8.5%, consistent with last year. An interim dividend of 4.4p has been offered, up 10% from last time. "Looking forward, the trends in revenue seen in the first half of the year are expected to continue into the second half of the year. The acceleration in the rate of cost efficiencies should enable us to deliver further progress in the second half of the year," said chief executive officer Richard Cousins in a company statement. Chairman Sir Roy Gardner added, "Whilst these are undoubtedly challenging times, we look forward to the future with confidence."