Compass: European deals on the cards as growth accelerates
Catering company Compass has reported double-digit growth in 2024 as it looks to grow its presence in Europe.
Compass told markets this morning that underlying revenue grew by 10.6 per cent, to $42.2bn (£33.6bn) in the year ended 30 September, up from $38.1bn last year.
Underlying operating profit grew 16.4 per cent year on year, from $2.6bn to $2.99bn, while the company improved its operating margin from 6.8 per cent to 7.1 per cent.
The firm, which provides catering services for universities and offices, said it was on track to deliver mid-to-high single-digit organic revenue growth in the long term and revenue growth of above 7.5 per cent from 2025.
The group has benefited from the post-pandemic return to offices and the return of in-person university education after it was plagued by a lull due to restrictions.
Dominic Blakemore, group chief executive, said: “2024 has been a year of strong operational and financial performance, with net new business growth accelerating in the second half as expected. The business continues to successfully capitalise on the dynamic market trends, using its proven competitive advantages to drive higher revenue and profit growth.
“We have exited, or agreed to exit, nine non-core countries, further improving the quality of our portfolio and enabling us to better focus on our core markets with the greatest growth opportunities. To support this growth, we’re investing in capex to drive net new business and are currently prioritising strategic acquisitions to further enhance our unique sectorised approach to clients.
“We have a proven track record of successful M&A in North America and are using that blueprint to unlock growth in other regions. The integration of recent high-quality acquisitions in Europe is progressing well, and we’re excited by the capabilities they bring to the group.”
Earlier this year, Compass announced plans for a multi-million-pound takeover of competitor CH&Co, the go-to hospitality provider for Kew Gardens and the Royal Opera House.
The company’s share price has risen by more than four per cent in the last month and nearly 24 per cent year to date.