AmOnline.com |

Compass Group PLC, which owns Canteen Vending Services Inc. in the U.S., reported 5 percent organic growth for the first six months ending March 31, 2008.

Richard Cousins, Chief Executive Officer, said in a prepared statement: "The group has delivered a strong set of results as we continue to benefit from the implementation of the

MAP (management and performance) framework and the tight operational focus it has instilled across the organization. We have seen another step up in our margin, with all our geographies contributing to a 60 basis points group wide increase. Our improved operational performance lifted free cash flow generation by 32 percent, whilst underlying earnings per share rose by 44 percent. The group has also strengthened its contract

mix by continuing to win high quality new business in key markets."

Sir Roy Gardner, chairman, said: "After more than two years of disposals, country exits, restructuring and the roll out of MAP across the business, it is clear that our strategy is delivering value for our shareholders. We believe that we have a well balanced and sustainable business model which has the capacity to drive continued revenue and margin growth over the medium term. Balance sheet efficiency (whilst not compromising flexibility) remains a priority and looking forward, we are confident about the second half of the year and the future potential for the business. With this as the background, we are increasing the interim dividend by 11 percent and will buy back a further £400 million of our shares over the next 18 months."

Overall, organic revenue growth was 5 percent, comprising new business of 8 percent, retention of 94 percent and like for like growth of 3 percent. Organic growth is calculated by adjusting for acquisitions (excluding current period acquisitions and including a full period in respect of prior period acquisitions), disposals (excluded from both periods) and exchange rate movements (translating the prior period at current period exchange rates), and compares the results against the same period in 2007.

In North America, the company said all of the sectors are performing well with organic revenue growth of 7 percent across a broad and well balanced portfolio. "We are winning large and good quality contracts, are seeing excellent retention of over 96 percent and there is an increased focus on driving like for like performance. Our success in creating a multi-service Healthcare business through cross-selling between Morrisons, our food service business, and Crothall, our support services business has delivered double digit organic revenue growth in this sector. Chartwells, our Education business, continues to generate strong like for like growth through innovation and we have made good progress in the business and industry sector, Levy, our Sports & Leisure business, and in the Canadian business," the report noted.