Compass earnings double

May 22, 2001
Web posted at: 0828 GMT

LONDON (CNN) -- The world's largest catering company Compass Group said on Tuesday operating profits doubled as it focused on its core business.

The UK company said first-half profits before interest, goodwill, amortization and one-time items rose 108 percent at £268 million ($385 million) from £125 million.

Compass, whose business ranges from providing catering at the Hollywood Bowl in California, to company restaurants in Europe and at UK motorway service stations, said its acquisitions and contract base provided a platform for growth.

The company, which was demerged from the UK's Granada and re-listed in its own right in February, said turnover rose to £3.96 billion before goodwill, amortization and exceptional items, from £2.65 billion in the same six months of 2000.

"The company has made an excellent start in the first half-year and prospects continue to be good," said Chief Executive Michael Bailey.

Compass's long client list includes blue-chip companies such as U.S. investment bank Merrill Lynch, drugs company GlaxoSmithKline and U.S. computer systems maker Sun Microsystems.

Compass is in the process of the selling its hotels unit to concentrate on catering and said the disposal of the last part of this, the upscale Le Meridien Hotel division, is progressing well.

The company, whose fast-food outlets include the Harry Ramsden's fish-and-chips chain and Little Chef, said it will continue to build its motorway services business and the Granada brand in the UK will be re-named Moto.

Shares in Compass (CPG) rose 3.4 percent in London trading to 526 pence.

Compass hotel sale advances – Dec. 13, 2001

Compass

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