UK & Ireland

In the UK & Ireland operating margin has increased by 40 basis points despite the difficult economic conditions.

The extensive restructuring of the UK over the past two years has enabled us to significantly improve the efficiency of our operations and, despite the difficult economic conditions, we have delivered a margin improvement of 40 basis points, with operating profit increasing to £54 million (2008: £53 million on a constant currency basis).

In the Business & Industry sector, like for like volumes are being impacted by lower levels of corporate catering and hospitality spend and reduced headcounts. We also experienced extended Christmas and New Year closures and also lost revenues due to the bad weather in February. Whilst we have seen some additional site closures as the economy has slowed, we continue to win high quality new business, increasingly with additional support services. National Grid plc is a good example of where we have extended our foodservice contract at 12 sites to now provide a range of support services in over 500 locations.

We are making good progress in Education and starting to see the benefits of our work over the last few years. We believe we now have the right offering and are in a strong position to move forward. Profitability has improved.

In the Healthcare sector, we have seen steady like for like volume growth, driven by our strong retail proposition. The recent acquisition of a number of McColl’s food and retail outlets is adding a new dimension to this exciting sector of the market.

The Jockey Club is a further example of where we have been able to extend our existing relationship with a client. In this landmark deal we have moved from the delivery of foodservices at four racecourses to all 14 racecourses operated by the Jockey Club. New contracts such as the Aviva Stadium in Ireland (formerly Lansdowne Road) and several other new stadium contracts reinforce our leading position in the Sports & Leisure sector.