British foodservice industry giant Compass group has reported a 30 per cent profit increase in its annual results announcement.

It details pre-tax profits of £589 million, a 30 per cent rise and a 46 per cent increase in free cash flow to £520m.

The results also show an overall revenue of £11.4 billion and a 45 per cent increase in underlying earnings per share, at 22p each.

Sir Roy Gardner, Compass chairman, said: “We are pleased with the results delivered in the last financial year against a background of weakening economic conditions. We have a clear and focused strategy and we are the market leader in an industry that has potential for significant structural growth.

“Our cash flow and balance sheet are strong. The strengths of the business that are highlighted in these results support the board's view that 2009 will be another year of progress for the company,” he said.

The report outlines the sources of the extra revenue, including new net business, an increase in like-for-like sustainable growth and a £6m cut in overheads. The company remains strong in the FTSE 100, despite the economic downturn.

Richard Cousins, Compass ceo, said: “The new financial year has started well and the visibility we have on the sales pipeline is encouraging. We are continuing to deliver good organic revenue growth and operating efficiency.

“In the context of a more challenging economic environment we are not complacent. We have considerable flexibility in the cost base and further significant scope for cost reduction,” he added.

Topics