Catering company Compass Group PLC (LSE:CPG) rewarded shareholders with a 125% increase in its full-year dividend and launched a further £250mln share buy-back as it reported strong growth in profits and revenues.
In the year to 30 September 2022, underlying operating profit grew 87.5% to £1.59bn, on revenue of £25.8bn, up 37.5% on the previous year.
The company highlighted "excellent" net new business of 7.5%, while client retention rates improved to a record 96.4%, up 100 basis points (bps) on 2021.
Underlying operating margins improved by 170bps in the year to 6.2% and are expected to rise in full-year 2023 to 6.5%.
For 2023, Compass forecast constant-currency underlying operating profit growth of over 20%, delivered through organic revenue growth of around 15%, weighted towards the first half of the year.
The group, which has completed an initial £500mln share buyback, also announced a further £250mln buyback, to be completed in the first half of 2023.
Chief executive Dominic Blakemore said: "The group's performance surpassed our expectations both in terms of net new business growth and base volume recovery, with Business & Industry now operating above its pre-pandemic revenues.”
"Looking further ahead, we remain 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 and rewarding shareholders with further returns."