Cityam%202013-05-16

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CITY MOVES
ICAEW
The Institute of Chartered
Accountants for England and
Wales (ICAEW) has appointed
Giles Derry as chairman of its
corporate finance faculty.
Derry is currently a partner at
Dunedin, and previously
worked at Sand Aire Private
Equity. It is the first time
someone from private equity
has become a chair at the ICAEW.
Bird & Bird
The law firm has appointed two new partners to its
London office. Victoria Hobbs and Graeme Payne
Compass raises
dividend 11pc
as profits surge
BY HARRY BANKS
COMPASS Group, the world’s biggest
caterer, posted an eight per cent rise
in first half profit yesterday, and said
a strong pipeline of new work in
North America and emerging markets
gave it confidence for its full-year
prospects.
The firm, which operates in some
50 countries and serves 4bn meals a
year, said underlying pretax profit for
the six months to 31 March rose 8.1
per cent to £611m on revenues up 4.1
per cent to £8.8bn, in line with analysts’
consensus forecast.
The strong performance enabled
the group to raise its interim dividend
11 per cent to 8p per share.
The group, which provides catering
to everyone from schools and hospitals
to offshore rigs and the
Wimbledon tennis, said revenue
growth had been driven in particular
by new contracts and retentions in its
core North American market and in
Australia’s oil and gas industry.
As expected, in Europe, where the
firm is cutting loss-making contracts
and selling businesses in the south to
ENERGY services company John
Wood Group said yesterday delays
in its gas turbines division should
recover by the end of the year to
allow the group to meet forecast
growth of 15 per cent for 2013.
The company, which designs,
builds and maintains oil and gas
facilities and pipelines, said its gas
turbines producing division, Wood
Group GTS, was currently behind
schedule due to delays to engine
overhauls but is expected to
recover over the rest of the year.
The engineering division and
Wood Group PSN – which offers
services to brownfield energy
WHO’S SWITCHING JOBS Edited by Annabel Palmer
both previously worked in the franchise dispute
resolution team at Field Fisher Waterhouse.
Pinebridge Investments
Wael Aburida has joined the asset management firm
as chief investment officer of its Middle East, North
Africa and Turkey team. Aburida was most recently at
Waha Capital, where he was director of mergers and
acquisitions (M&A). Prior to that, he was director of
the global M&A group at Intel.
Marsh
The insurance firm has appointed Neil Irwin to lead its
business development across its Middle East and
North Africa region. Irwin joined the firm in 1991, and
has since held a variety of strategic business
offset weak markets, revenue fell at
constant currency, although its operating
profit margin increased due to
cost savings.
The firm, which makes 35 per cent
of revenue in its Europe and Japan
division, said it had started to see hospitality
budgets being squeezed in
countries like Sweden and the Czech
Republic, while France has worsened
in recent months.
Compass said group organic revenue
growth was 4.1 per cent including
the negative impact of Easter
timing, or 4.8 per cent on a comparable
working days basis, in line with
forecasts.
THURSDAY 16 MAY 2013
Restaurant Group is planning to open more Frankie & Benny’s sites this year
Restaurant Group shares hit
record high as margins improve
BY CITY A.M. REPORTER
BRITAIN’S Restaurant Group said
yesterday it had the best new site
pipeline in years after reporting
rising organic sales and margins in
the first 19 weeks of the year,
sending its shares up 6.8 per cent
to an all time high of 519p.
The chain, which owns over 400
restaurants and pubs in Britain,
said it expected to open at least 30
new sites this year, the majority of
which will be Frankie & Benny’s
restaurants, and has more
openings planned for 2014.
Adding to its portfolio of
American-style eateries,
Contract wins
boost Serco
BY KATIE HOPE
INTERNATIONAL services firm Serco
said yesterday that it was on track
for 2013.
New contract wins since the start
of the year total £0.9bn, and the firm
continues to expect a small
improvement on the 3.3 per cent
rate of organic revenue growth seen
last year. The firm, which operates
over 700 outsourcing contracts
worldwide, said it remained
confident in its “overall outlook and
future growth prospects.”
All resolutions were passed at
Serco’s subsequent AGM including
its remuneration report, which 4.4
per cent voted against.
development, consulting, and senior management
positions.
Gide Loyrette Nouel
The law firm has made two appointments to its
structured finance and securitisation team. Samir
Bensake joins as an associate from Allen & Overy’s
Paris office, where he advised arrangers and
originators on securitisation transactions. Jeremie
Bismuth, who also joins as an associate, was
previously at Orrick.
Informatica
The data integration software company has
announced that Andrew M. Miller will join its board of
directors. He is currently president and chief
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Compass Group PLC
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15 May
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Wood Group set to meet growth
forecasts despite turbine delays
BY CITY A.M. REPORTER projects – were performing in line
with expectations, the company
said, with growth coming from the
North Sea and shale in the United
States.
Wood Group said it expected
about 15 per cent underlying
growth in 2013.
European peers such as
Norway’s Aker Solutions and
Italy’s Saipem both issued profit
warnings earlier this year.
“Our balance sheet remains
strong and we remain confident of
achieving full year performance in
line with expectations,” chief
executive Allister Langlands told
investors at the company’s AGM
yesterday.
Restaurant Group’s new Coast to
Coast restaurants also performed
particularly well, it said. Total
sales rose by 11 per cent and likefor-like
sales by 4.5 per cent.
Restaurant Group PLC
520 p
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15 May
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CIDER group C&C said yesterday
sales of its star brand Magners
had fallen for the first time in a
decade, as it hailed strong sales
of Tennent’s lager for propping
up its core brands.
Profits at the company rose
2.4 per cent to €113.9m on
revenues 0.8 per cent lower at
€476.9m, as Magners volumes
fell almost 14 per cent with
sporting events such as the
Olympic Games failing to lift
sales.
Overall, cider volumes fell
by two per cent – their first
decline in a decade – as poor
IN BRIEF
Barratt refinances ahead of time
n House builder Barratt
Developments impressed investors
yesterday by agreeing a new loan
facility of £850m and paying off
private placement notes ahead of
schedule. FTSE 250-listed Barratt said
the measures will help it become free
of net debt by 2015. The firm has also
cancelled £55m of interest rate swaps.
Shares in the group closed up 5.7 per
cent at 329.1p yesterday.
Birds Eye secures new captain
n Fish finger maker Birds Eye has a
new captain – former music boss Elio
Leoni Sceti. Sceti, who was chief
executive of EMI Music, will take over
the top job at the iconic fish brand’s
owner Iglo Group, taking over from
interim boss Erhard Schoewel, who
reverts back to his role as nonexecutive
chairman. Iglo Group, which
also owns frozen food maker Findus, is
backed by private equity outfit
Permira.
Lookers hails excellent trading
n Motor dealership Lookers said
yesterday that trading had been
“excellent” in the first three months of
the year. Its new car retail sales
increased by 13 per cent,
outperforming the overall UK retail
market which rose 11 per cent in the
same period. It said however that fleet
volumes fell seven per cent, lagging
the seven per cent rise in the UK fleet
market over the same period. It
attributed the fleet weakness to a low
margin deal last year which has been
discontinued.
Magners sales fall as C&C battles
against weak market for cider
BY CITY A.M. REPORTER UK weather depressed
NEWS
executive of Polycom. He previously led high-growth
sales organisations for Cisco.
17
TIW
The technology company has announced the
appointment of David Hay as business development
director. He has over 25 years’ experience as an
underwriter, and joins from Cognizant, where he led
its London market practice.
Cluff Natural Resources
The oil, gas and mining investment company has
hired Graham Swindells as chief financial officer.
Swindells has worked in corporate finance for the
past 12 years, and was most recently a director in
Ernst & Young’s M&A team.
consumption in the market’s key
summer months.
Strong sales of Tennent’s helped
boost international sales, while
UK lager sales fell by 5.9 per cent.
“While it has not been an easy
year for our core cider brands,
with poor weather and
increased competition,
particularly in the UK, the
second half did bring some
trading stability in
Ireland,” said chief executive
Stephen Glancey.
Sales of Magners have fallen for
the first time in a decade