Didn't They Do Well - Sodexo Earns a Fortune

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18 November 2016 | Updated 01 January 1970

Sodexo, the world’s largest services company, announced its full year results on November 17 - with a record trading in the UK and Ireland.

For the year ending 31 August 2016, Sodexo revenues amounted to €20.2bn, up 2.2% on 2015 and organic growth of 2.5%. Revenues in the UK and Ireland increased 9.6% to €2bn. Organic growth of 11.3% was in part due to the signficant contribution of the Rugby World Cup contract in the first quarter of the year. However even without the Rugby World Cup effect, the organic growth trend was a solid 5.3% due to the ramp up of many new contracts won in 2015 and strong retention during the year.

In the defence sector, Sodexo was awarded the Hestia South Regional contract which includes 31 Army and RAF units across southern England and was awarded the contract for the North of England region multi-activity contract.

In the corporate and sports & leisure sectors Sodexo won contracts with Covance, Shell, Scottish Public Pensions Agency, National Trust for Scotland, and the Northern Ireland National Football Stadium at Windsor Park.

In the university and schools sectors, Sodexo was awarded contracts with National Univeristy of Ireland, Galway, Northumbria University, Stoneygate School, Rathmore Grammar School, Brentwood School and University of Nottingham.

Retention

In addition to new business successes, Sodexo has achieved a retention rate of over 96% - the fourth year that the company has achieved a rate above 95%. The company has retained or increased business with some key clients such as Dundas and Blair Castles, Oasis Academy schools, Queen’s Hospital in Romford, Royal Botanical Garden Edinburgh, Everton Football Club, Hampden Park stadium, Honda and Virgin Atlantic lounges.

Since the start of the 2016/2017 financial year, Sodexo has made two acqusitions – five public catering contracts in London from Peyton & Byrne and the acquisition of PSL, a procurement provider to the UK hospitality industry.

Picture: Sean Haley, regional chairman for Sodexo UK & Ireland who is clearly chuffed at how well the company is doing on his patch

Article written by Brian Shillibeer | Published 18 November 2016

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