Caterer Compass lined up for more growth

The world's biggest catering firm reported a 12 per cent rise in annual profits on Tuesday and said it was well on the way to…

The world's biggest catering firm reported a 12 per cent rise in annual profits on Tuesday and said it was well on the way to hitting its 2004 sales target.

Compass - which feeds motorists, schoolchildren and hospital patients and staff as well as workers at the BBC and the Pentagon - said it had already secured 80 per cent of the net growth it needs to meet its target of at least 6 per cent like-for-like turnover growth in 2004.

The British company posted profits before tax, goodwill amortisation and exceptional items and excluding its sold Little Chef and Travelodge businesses of £654 million sterling for the year to September 30th, compared with £585 million a year ago.

The firm met its six per cent like-for-like turnover growth target for the year and hit the top end of its target range for like-for-like margin growth with a 30 basis points improvement.

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The firm announced a final dividend of 5.7 pence per share, making a total dividend for the year of 8.4 pence - up 18 per cent. Executives said future dividends would likely increase in line with earnings.

Compass said it had completed £235 million of its £300 million pound share-buyback programme, which it would resume after the results.

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