11 April 2019 | Herpreet Kaur Grewal
Support services firm Sodexo has reported just over 3 per cent organic growth in its first-half fiscal 2019 results.
It also stated that all growth KPIs had improved and its underlying operating margin was in line with expectations.
The company revealed that growth in North America turned positive in the first quarter at +0.2 per cent, and accelerated in Q2 to +2.4 per cent. Europe was solid at +3 per cent, and Africa, Asia, Australia, Latin America, and Middle East regions continued to grow at +6.9 per cent, despite the ever-higher comparable base.
Sean Haley, regional chairman for Sodexo UK & Ireland, said: "Over the past six months the focus on the outsourcing market and the value that private companies deliver has continued. Although the market remains very competitive and improving our operating performance is challenging, we have continued to win and retain new business across our sectors.
"As a key strategic supplier to government, we are working together to improve the procurement process and to ensure that social value is embedded into all contracts. This reflects the way we operate and supports our strong belief that companies that provide public services should contribute to society as part of the way they do business.
"Recent contract wins have included the Scottish Fire and Rescue Service, the King's School in Chester and the Schoen Clinic in our private healthcare business. Existing contracts we have retained or extended include Wellington College, the Ardagh Group, Leonardo Helicopters, and Birmingham Children's Hospital.
"Sodexo has continued to invest in the UK, which is a major market for the company. We have strengthened our education business with the acquisition of Alliance in Partnership, a specialist education caterer with a client base of over 400 schools, and this week we announced the acquisition of The Good Care Group, a leading live-in care provider, to expand our presence in the UK home care market.
"Looking ahead, the market will remain challenging but we will continue to manage our business prudently and operate ethically. We are confident in our capacity to continue to grow."