Glanbia's British subsidiary, Glanbia Food Service, has won a £300 million sterling (€495 million) five-year contract to supply the Compass Group with chilled foods for its contract catering outlets in Britain.

Compass is the world's largest food service and hospitality organisation, covering areas from industrial catering to hospitality services. It currently includes the Forte hotels, which are being sold off as the group intends to concentrate on its core business.

Glanbia Food Service will supply the chilled dairy, fresh meat, milk, fruit and vegetable requirements of 2,500 Compass outlets, starting in July. The company says more than 150 additional jobs will be added to the 450 already employed in its main distribution centre in Tamworth in Staffordshire and in satellite distribution depots around the country.

Glanbia Food Service's turnover last year was about £100 million sterling and this contract will grow the turnover by 60 per cent over the five year period, according to a company spokesman.

In last year's annual report, two businesses were said to be under-performing, one being the British food service subsidiary. According to Glanbia, a key factor in winning the contract was its automated call centre which will log daily individual orders from participating Compass facilities.

Glanbia shares on the Irish Stock Exchange closed up four cents to 85p yesterday. The company's a.g.m. takes place today.