Compass Group PLC has announced its full-year results for the year ended September 30, 2023. The company reported strong underlying results, with revenue of £31.3 billion, a growth of 18.8% compared to the previous year. Operating profit increased by 29.6% to £2,122 million, and earnings per share rose by 32.5% to 86.1p. The company also generated strong operating cash flow of £1,825 million and free cash flow of £1,241 million. Compass Group attributed its strong performance to organic revenue growth of 19% and a 60 basis point increase in operating margin.

The company capitalized on significant market opportunities, signing £2.7 billion of new business, with first-time outsourcing accounting for approximately 50%. Compass Group also achieved a net new business growth rate of 4.6% and a client retention rate of 96.5%. The company invested £1.2 billion in capex and M&A to enhance its capability and expertise. It also announced a further share buyback of up to $500 million, subject to M&A activity.

Compass Group outlined its strategic priorities, which include focusing on significant structural growth opportunities in core markets, evolving its operating model to enhance competitive advantages, and investing in future sources of growth through capex and M&A. The company also provided its outlook for 2024, expecting high single-digit organic revenue growth and ongoing margin progression.

Dominic Blakemore, Group Chief Executive of Compass Group, expressed confidence in the company's growth prospects, stating, "We are confident that the focus on our core markets, the ongoing investment in our market-leading offer, and our proven processes will support high single-digit organic revenue growth in 2024."

Compass Group will present its full-year 2023 results in a video presentation, followed by a live Q&A session for investors and analysts.