Compass PLC predicted the continued recovery from COVID-19 in its markets would mean revenues surging ahead in the current year.
In an upbeat statement, the contract caterer also said it was resuming dividend payments.
“The tailwinds from first time outsourcing continue and, combined with our differentiated operating model and investment opportunities, we are in a strong position for growth,” said chief executive Dominic Blakemore.
That will translate into organic revenue growth of between 20%-25%, he added, with underlying margins recovering further to around 7%, though due to inflation and mobilisation costs most of this improvement will occur in the second half.
Sales in the year to September 2021 dropped by 10% £17.9bn due to the impact of coronavirus across its businesses, but there was a steady improvement over the year and by the end, revenues were up to 88% of 2019’s levels.
Healthcare & Senior Living and Defence, Offshore & Remote sectors performed well above pre-pandemic revenues, said the FTSE 100 group, while Education and Sports & Leisure saw a strong recovery in the fourth quarter.
The business & industry sectors have remained subdued due to the delayed return to offices.
Margins in the fourth quarter rose to 5.8% compared to 4.4% overall for the year, which helped pre-tax profits almost double to £464mln,
The dividend for the year is 14p, with the policy going forward to pay out 50% of underlying earnings.
“We are increasingly excited about the significant structural growth opportunities globally, leading to the potential for revenue and profit growth above historical rates, returning margin to pre-pandemic levels,” added Blakemore.