2568.11 kb - Compass Group

03 Compass Group PLC Annual Report 2007Regional review at a glanceNorth AmericaFor the 13th consecutive year Master Chef WolfgangPuck was selected to create the menu for The Academyof Motion Picture Arts and Sciences post-Oscar event,the Governor’s Ball. In the same month Compass’foodservice excellence was on show at the 49thAnnual Grammy Awards and for the Players’ Partyand Super Bowl Host Committee VIP Party at thisyear’s Super Bowl.Continental EuropeOur business in Spain is capitalising on the rapidexpansion of the senior-living market. Building on ourexperience of providing foodservice in the residentialcare homes market, we have developed a deliveredmeals service for senior and handicapped peopleat home; a model for other countries with ageingpopulations looking for an alternative to movingpeople into rest homes. In the last year we havedelivered over 1.2 million meals to people in-homeproviding a varied, healthy diet.Revenue2006: £4,290m£4,162mPercentage ofGroup revenue40%2006: 42%Revenue2006: £2,484m£2,553mPercentage ofGroup revenue25%2006: 24%Operating profit 32006: £245m£261mRegional highlightsContinued excellent progressdelivering 6% organic revenue growth.Operating profit from continuingoperations increased by £39 millionon a constant currency basis to£261 million (2006: £222 million),a 60 basis point margin improvement.The Business & Industry sector hasbeen driven by innovation in our offer,delivering 4% like for like revenuegrowth.In Healthcare, 7% organic growthfrom increased cross-selling betweenMorrison, our foodservice business,and Crothall, our support servicesbusiness.Healthy eating programmes andthe strength of the Chartwells brandcontributed to 9% organic revenuegrowth in the Education sector.Good growth in Levy, our Sports& Leisure business.Continued good progress withour business in Canada.Our pipeline for 2008 looks healthy.Operating profit 32006: £122m£151mRegional highlightsOrganic revenue growth has doubledto 4%, with good growth opportunitiesfor the future.On a constant currency basis, growthof £31 million operating profit fromcontinuing operations to £151 million(2006: £120 million) represents a marginimprovement of 100 basis points.In Spain, like for like growth, drivenby new offerings and an increase inconsumer numbers, together withnew business in the Healthcare andEducation sectors, have drivenorganic revenue growth of 13%.Continued high activity in the oiland gas industry in the Nordic regioncontributed to 14% organic revenuegrowth, while the focus on healthyeating continues to drive volumesthrough much of the region.Good turnaround in previouslyunderperforming countries suchas France and the Netherlands.We are becoming more establishedin the Eastern European market,which is growing well.United KingdomRest of the WorldThe newly branded Restaurant Associates was launchedin May 2007 to respond to a growing demand for aleading provider of executive hospitality, dining andbusiness support services to its prestigious blue-chipclients; including 17 out of the top 20 investment banks inLondon, law firms and leading organisations. The moveconsolidated our previous brand operations under onestrong identity and management structure. Our newbusiness goals reflect a commitment to innovation,service, lifestyle and simplicity.Tengizchevroil (TCO), a Chevron managed joint venturein Kazakhstan, renewed their contract for supportservices at their Atyrau and Tengiz facilities after acompetitive re-tendering process. This is one of ourlargest remote site contracts, with over 3,200 of ourpeople providing a range of services, including fulldaily catering services and the full maintenance ofoffices, accommodation rooms and town homes.Revenue2006: £1,882m£1,931mPercentage ofGroup revenue19%2006: 18%Revenue2006: £1,611m£1,622mPercentage ofGroup revenue16%2006: 16%Operating profit 32006: £107m£107mRegional highlightsRevenue in the UK was £1,931 million(2006: £1,882 million), growth of2% on an organic basis.A solid result with, as expected,operating profits in line with last year.Largely completed the turnaround orexit of poor performing contracts.The Education sector has stabilisedfollowing a difficult period.We have continued to reorganise thebusiness to drive further efficiencies.We expect a broadly similarperformance in 2008.Operating profit 32006: £47m£64mRegional highlightsAnother very strong year, delivering£64 million operating profit fromcontinuing operations (2006:£43 million on a constant currencybasis), an increase of £21 million.Australia continues to deliver strongorganic revenue growth driven by theongoing buoyancy of the extractionindustries.Encouraging progress in Japan, wherethe focus on driving efficiency andrestructuring the business has resultedin good margin improvement.Our businesses in Abu Dhabi andDubai have seen good revenue andmargin growth.Good revenue growth with somemargin improvement in Latin America.Looking forward there remainssignificant opportunity to furtherdevelop our businesses in theRest of the World both in size andoperating performance.See footnotes on page 1.