Compass has delivered another strong performance in a challenging environment. An acceleration in new business wins and continued progress in operating efficiency has delivered significant growth in the margin of 50 basis points. It is very encouraging that organic revenue growth is now returning. As we look forward we will maintain our relentless focus on efficiency, but at the same time we are laying strong foundations for the future growth of the Group.
Reported revenue has grown by 2.6% in the six months to 31 March 2010, or by 0.9% on a constant currency basis. Adjusting for the impact of acquisitions and disposals, organic revenue growth was 0.4% for the period. Encouragingly, the Group has seen a slight acceleration in the rate of new business wins to 9% and the retention rate has remained stable at 93%. After three very difficult quarters, like for like volumes are now showing signs of stabilisation and as we look to the second half of the year we continue to expect to deliver modest organic revenue growth.
We continue to focus on the MAP programme, which gives us the framework to deliver quality new business and retention as well as control costs and drive greater efficiency. For the six months to 31 March 2010 this has enabled us to deliver £44 million, or 10%, of constant currency operating profit growth. The operating margin has increased by 50 basis points to 7.0%, benefiting from the continued flow through of the significant efficiencies generated in the second half of the year to 30 September 2009.
We have seen a slight improvement in the rate of new business wins in both food and multi service business, winning important new contracts with Wells Fargo in the USA, Aviva in the UK and Deutsche Postbank in Germany. Furthermore, the pipeline of new business looks encouraging.
We are continuing our focus on extending existing client relationships and the roll out of retention best practice is starting to gain real traction around the world.
We have again grown our profit through sustainable growth in the base estate.
MAP is fundamental to driving consistent performance across the Group and the discipline it brings to the way we manage the business puts us in a strong position to meet the challenges in the period ahead.
Client sales and marketing
Consumer sales and marketing
Cost of food
Unit costs
Above unit overheads
