By Razak Musah
LONDON--Compass Group PLC's (CPG.LN) rise in pretax profit during fiscal 2014 was driven by good levels of new business and high retention rates, the food services giant said on Wednesday.
The company, which runs staff restaurants in offices and factories, as well as providing catering at sports events, recorded pretax profit of 1.15 billion pounds ($1.8 billion) during the year ended Sept. 30, compared with GBP721 million a year earlier. Reported revenue, however, fell 2.8% to GBP17.06 billion from GBP17.56 billion, as a result of the significant strengthening of sterling against many of the group's key currencies, the company said.
"Looking ahead to next year, the pipeline of new contracts is healthy and we expect to see further good performances in all of our regions," Chief Executive Richard Cousins said.
"We also expect to deliver further cost efficiencies, which will help to support future growth and enable us to make further progress in the operating margin. As a result, we remain confident in our ability to continue to create significant value for our shareholders," Mr. Cousins added.
The food and support services company proposed a full year dividend increase of 10.5% to 26.5 pence.
Write to Razak Musah Baba at email@example.com; Twitter: @Raztweet
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