Catering giant Compass Group has revealed a jump in revenues and profit for the past year as it was supported by new business and higher food prices.
Bosses hailed a “strong year” as it also benefited from further strong growth in North America.
The firm, which provides food service for offices, universities and sports venues, told shareholders that revenues grew by 21.6% to £31 billion in the year to September 30, compared with the previous year.
Meanwhile, operating profit rose by 26.1% to £1.89 billion despite pressure from inflation.
It told investors it is targeting 13% underlying profit growth in the current financial year, with high single-digit organic revenue growth.
Compass said organic growth over the past year saw a 5% boost from new business, while it was pushed 7% higher by higher pricing while like-for-like volumes also grew 7%.
Dominic Blakemore, Compass Group chief executive, said: “2023 was a strong year for Compass.
“North America continued its long track record of excellent growth whilst Europe delivered a second year of net new growth in the 4-5% range.
“During the year, we continued to successfully capitalise on the dynamic outsourcing trends, resulting in another record year of new business wins and continued strong client retention.
“The business is in great shape operationally and financially and well positioned for a more focused growth phase.”
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Compass Group has served up a set of full year results that is likely to satisfy shareholders’ tastes.
“Volume and price contributed to growth in equal measure, and encouragingly new business growth of 5% trended above historical norms.”