Delivering value consistently

• 35

  Position in the FTSE 100 Index
  2009 position as of 30 September 2009
  (2008: 34)

• 10%

  Total dividend up 10% to 13.2p
  (2008: 12.0p)

Our consistent delivery of shareholder value is testament to the resilience and scope of our business model and to the fundamental attractions of outsourcing.

I am delighted to report another year of excellent progress delivering further growth in operating profit, margin improvement and free cash flow generation, achieved against the backdrop of challenging economic conditions.

We continue to benefit from the consistent pursuit of the clear strategy we set out three years ago. Our strategy is focused on the significant opportunities in outsourced foodservice and, increasingly, on developing our fast growing support services business. We aim to do this in our core countries and market sectors.

MAP, our Management and Performance framework, continues to drive real efficiency across the Group. By sharing best practice and innovation our people have achieved a real focus on growing and developing our business, whilst embedding a culture of operational efficiency across the Group. As a result, we have driven significant cost efficiency, improving both our financial performance and our competitive advantage as we relentlessly seek to deliver the highest quality to our clients, whilst being the lowest cost and most efficient operator.

I am very encouraged that, whilst operating in a more difficult economic environment, we have continued to win a consistent level of excellent new business and to extend our relationship with existing clients in both food and multi services. In an environment where decision making has been slower than usual, this is a real achievement.

As I talk to clients around the world, they are increasingly looking to us, as they review their cost base, to help simplify and consolidate their existing suppliers. They are seeking to achieve greater efficiency and consistency through standardisation, whilst at the same time ensuring the highest quality service to support their business and meet the highest health, safety and environmental standards.

Our global reach, unrivalled local market and sector knowledge and world-class service capability across food and support services place us in an ideal position to achieve these goals and to deliver the global consistency international organisations demand.

Whilst our organic revenue was flat this year, the main driver of this has been lower client and consumer discretionary spend and fewer people on site within our more cyclical sectors of Business & Industry and Sports & Leisure. The consistently high levels of new business and client retention suggest that the slowdown in organic revenue is due to the short-term effects of the economic cycle and that the fundamental attractions of outsourcing remain. Strong positions in our key geographies are allowing us to benefit from the structural growth in food and support services and, as the global economies recover, we expect to benefit from a cyclical upswing in demand.

Our performance and the steps we have taken to strengthen our balance sheet place us in a strong position to support our growth plans. Whilst our primary focus is on organic revenue growth, we have made a number of excellent acquisitions in 2009. In the USA, we have strengthened our ability to deliver support services to the Business & Industry and Healthcare sectors with our acquisition of Kimco and integration of Medi-Dyn and Professional Services. In Germany, our acquisition of Plural is also bringing a new dimension to growth as clients seek to bundle food and support services.

I am delighted to welcome these businesses into the Group and I look forward to more value creating acquisitions as we drive our growth plan forward.

Compass Group share price performance vs FTSE 100 Index 2009

Compass Group share price performance vs FTSE 100 Index

over the last 3 years