2568.11 kb - Compass Group

05 Compass Group PLC Annual Report 2007Returns to shareholdersThe Board is proposing a final dividendof 7.2 pence per share for payment inMarch 2008. This brings our full yeardividend to 10.8 pence, a year on yearincrease of 7%.In July this year we completed the sale ofSelecta, the European vending business,for £772 million before transaction costs.Of these proceeds we are using £500 millionto extend our share buy-back programme.This is in addition to the return of£500 million to shareholders followingthe sale of SSP in 2006, taking the total sharebuy-back programme to £1 billion. As of30 September 2007 we had bought backshares for cancellation to the value of£720 million.A further £45 million of the Selecta proceedshave been contributed to Compass’ UKclosed defined benefit pension plans, takingthe total amount of special contributionsto these plans over the past 15 months to£325 million, significantly reducing thepension deficit in these schemes.The balance of the proceeds has been usedto further reduce net debt.ManagementOn becoming Chairman I began the processof reinvigorating the Board to achieve theright blend of expertise, experience andstrong independent scrutiny to guide thedecisions of the Board over managing andgrowing the business in the best interests ofour shareholders.This has been achieved through an orderlysuccession plan and without compromisingthe effectiveness of the Board and itscommittees.Peter Blackburn, Peter Cawdron and ValGooding have all stepped down from theBoard in the last year and I would like tothank each of them for the contributionthey have made to the Group.I am delighted that Sir Ian Robinson, TimParker, Sir James Crosby and Susan Murrayjoined the Board as non-executive directorsduring the last 12 months, with Sir JamesCrosby becoming the senior independentnon-executive director. Together with myother colleagues on the Board, I look forwardto our new directors’ continued contributionto the deliberations of the Board.In June we appointed Mark White as theGroup’s General Counsel and CompanySecretary, a new role within the Group.Mark, a qualified solicitor, has extensiveinternational legal and business experienceand joined us from Wolseley plc.Our peopleOn behalf of the Board, I would like to thankall of our people around the world for theircommitment and efforts in achieving theseresults and for the excellent service theydeliver daily; service that continues to earnthe loyalty of our clients and consumers andreinforces our position as a leader in ourchosen markets.OutlookThe results that we have reported for 2007demonstrate that we have the right strategy,the right leadership and, through MAP, theright focus to capitalise on the considerableopportunities that exist in our chosen markets.I believe that these results and the actionswe are taking give us a solid foundation onwhich to base sustainable performanceimprovements and deliver increasing valueto our shareholders.Sir Roy GardnerChairman28 November 2007Our strategyWe have a very clear and focused strategy,a significant market opportunity and a tightoperating model with much improvedcontrols and governance.Focus on our contractfoodservice businessGrow our supportservices businessCommitted to givingour customerssuperior levelsof serviceFocus on drivingcost efficiencies