Food and support services company Compass Group Plc (CMPGF.PK, CPG.L) reported that profit attributable to equity shareholders of the company for the six-month ended 31 March 2013 decreased to 424 million pounds from the prior year's 427 million pounds. But, earnings per share for the period were 23.0 pence, up from 22.4 pence last year.
Profit before tax from continuing operations declined to 575 million pounds from last year's 581 million pounds.
On an underlying basis, the basic earnings per share from continuing operations were 24.5 pence, an increase of 9.4% compared to the prior year, or 10.9% on a constant currency basis.
Underlying operating profit increased by 6.6% in the first half on a constant currency basis, with the underlying operating profit margin increasing by 15 basis points to 7.3%.
Underlying operating profit from continuing operations was 650 million pounds , compared to 617 million pounds million, an increase of 5.3% over the prior period. On a constant currency basis, underlying operating profit increased by 40 million pounds, 6.6%.
Revenue from continuing operations for the period rose to 8.804 billion pounds from last year's 8.550 billion pounds.
Overall, reported revenue growth for the six months to 31 March 2013 was up 3.0%, or 4.4% on a constant currency basis. Organic revenue growth for the period was 4.1%, after adjusting for the impact of acquisitions and disposals, comprising new business of 8.8%, a retention rate of 94.0% and like for like growth of 1.3%. On a comparable working day basis, organic revenue growth would have been approximately 4.8%.
The company announced an interim dividend of 8.0 pence per share, an increase of 11.1%, will be paid on 29 July 2013 to shareholders on the register on 28 June 2013.
As it looks out to the second half, the pipeline of new contracts in North America and Fast Growing & Emerging remains healthy and the company expects to see good performances in these regions. The company said the pressure it has seen on like for like volume in the first half in Europe & Japan is likely to continue. However, its continued focus on efficiencies underpins its confidence and its overall expectations for the full year remain positive and unchanged.
In the longer term, the company said it remains very optimistic about the structural growth opportunities in both food and support services around the world. It also expects to generate more cost efficiencies and make further progress in the operating profit margin.
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