8 November 2018 | Herpreet Kaur Grewal
Support services group Sodexo has reported organic revenue growth of 2 per cent, according to the company's annual results published today.
The company saw acceleration in the fourth quarter owing to a return to record levels of summer tourism in France.
Its on-site services saw organic revenue growth of 1.4 per cent.
In terms of acquisitions, the net of Sodexo's disposals amounted to 697 million.
Centerplate, a provider of food and beverage, merchandise and hospitality services at sports facilities, convention centres and entertainment facilities in America and Europe, was the biggest disposal.
Sean Haley, regional chairman for Sodexo UK and Ireland, said: "The market has remained highly competitive in the UK and Ireland with continued emphasis on price and increased scrutiny on the value of outsourcing particularly in the public sector."
He added: "We have achieved renewed growth in our education business winning state school contracts, such as Wellspring Academy Trust and Great Western Academy, by developing our food offer with insight from school children. Our acquisition of the Good Eating Company has strengthened our corporate services business with significant wins such as Nomura.
"In our government business, we won the largest integrator contract in the public sector with the Department of Work & Pensions. We have also continued to invest in client feedback and developing strategic partnerships, which has contributed to over 95 per cent retention across our business and successful extensions such as Coca-Cola and Chesterfield Royal Hospital.
"In the coming year, we expect the market to remain competitive but we anticipate greater emphasis on quality and value by clients and consumers. We will continue to invest in our people, our values and doing business the right way to achieve continued growth across all sectors."