- Revenue of £31.3bn – organic growth of 19%
- Operating profit up 30% to £2.1bn
- Final dividend of 28.1p declared up 27.1%., with a further $500m buyback announced
- 2024 outlook – Expects high single digit organic revenue growth with operating profit to rise towards 13%
Derren Nathan, head of equity research at Hargreaves Lansdown:
“Contract caterer 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. This reflects a structural growth opportunity in outsourcing as more businesses turn to Compass to mitigate supply chain and regulatory pressure. This was reflected in the fact that 50% of the £2.7bn of new business won over the year came from customers dipping their toes into outsourcing for the very first time. Compass is the market leader but with a share of less than 15% and 50% self-operated there’s a lot to go for. That should give it some shelter from macroeconomic pressures and the guidance given for the new financial year could leave some room for upside.”
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