Rest of the World

The Rest of the World has delivered good organic revenue growth of 5.4%.

The Rest of the World has delivered good organic revenue growth of 5.4%. Operating profit has increased by £14 million, or 30%, on a constant currency basis, to £60 million (2008: £46 million on a constant currency basis), in part through the acquisition of the remaining 50% of the shares of GR SA in Brazil completed in March 2008. The margin has increased by 80 basis points on a constant currency basis to 5.3%.

Overall we are continuing to see good levels of new business wins across all countries in the region, including a new contract with Cablevision in Argentina, Colégio Santo Américo in Brazil and growing our multinational clients where we have added new sites with Citigroup. Like for like volumes in the energy and extractive industry remain strong. We have made good progress in leveraging our overhead base which has helped to deliver the growth in the margin.

In Australia, we have seen strong levels of revenue growth in all sectors, including a new fully integrated services contract with the Australian Defence Force for bases in Tasmania and an extension to our BHP Billiton Iron Ore construction and expansion portfolio. The Healthcare sector has been outstanding. With a stable management team, good client relationships and a focus on operational efficiency we have seen significant margin improvement.

The economy in Japan has been particularly challenging with reduced volumes in the Business & Industry sector. With good progress on cost control, particularly in the supply chain, we are continuing to see improvement in the margin.

In Brazil there has been a sharp reduction in employment levels affecting like for like volumes. We have strengthened the management team and are now well placed to grow our business in this exciting market, where we are the market leader.

Our UAE joint venture has seen first half revenue growth of 25% and it has a healthy pipeline of potential new business.