Catering giant Compass has posted a drop of 9.9 per cent in annual profits.

The business, which is under investigation by US authorities, said pre-tax pre-exceptional profits fell to £581 million .

The catering group has suffered a troubled year, with the United Nations suspending the company last month after allegations of contract bidding irregularities.

Compass said that no final conclusions in the investigation had been reached and that it was continuing to co-operate fully with the UN.

The investigation surrounds allegations that Compass's Eurest Support Services (ESS) division improperly obtained confidential information concerning a three-year contract to supply food and water to UN peacekeepers in Liberia.

Earlier this month, Compass sacked the head of its UK division and two other employees as the investigation continued.

The corruption allegations have also been referred to the UK's Serious Fraud Office (SFO).

The caterer described its UK performance as “unsatisfactory”, with like-for-like sales to schools down by one per cent.

UK operating profits fell by a third to £205m, though turnover was six per cent higher on a like-for-like basis.

Despite the bad performance, trading elsewhere in the world was reported to be better, with business described as performing to expectations.