FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The food and support services business has reported another year of strong performance in its Full Year results for the year ended 30 September 2024 and states it is “confident in delivering high single-digit profit growth in 2025″.
The group reports an underlying operating profit growth of 16.4%. Organic revenue increased by 10.6% with net new business growth of 4.2%, which accelerated in H2 and its underlying operating margin improved by 30bps year-on-year to 7.1% with good progress in all regions.
Reflecting the strong trading performance, statutory revenue increased by 10.8% to $42,002m (2023: $37,907m) and statutory operating profit increased by 11.7% to $2,584m (2023: $2,313m).
Commenting on the FY24 results, Dominic Blakemore, Group Chief Executive, said: “2024 has been a year of strong operational and financial performance, with net new business growth accelerating in the second half as expected. The business continues to successfully capitalise on the dynamic market trends, using its proven competitive advantages to drive higher revenue and profit growth.
“We have exited, or agreed to exit, nine non-core countries, further improving the quality of our portfolio and enabling us to better focus on our core markets with the greatest growth opportunities. To support this growth, we’re investing in capex to drive net new business and are currently prioritising strategic acquisitions to further enhance our unique sectorised approach to clients.
“We have a proven track record of successful M&A in North America and are using that blueprint to unlock growth in other regions. The integration of recent high-quality acquisitions in Europe is progressing well, and we’re excited by the capabilities they bring to the Group.”
Looking ahead, he added: “In 2025, we expect high single-digit underlying operating profit growth, driven by organic revenue growth above 7.5% and ongoing margin progression. Longer term, we are confident in sustaining mid-to-high single-digit organic revenue growth with ongoing margin progression, leading to profit growth ahead of revenue growth. Our priority is to invest in the business through capex and M&A to support future growth, with surplus capital being returned to shareholders as we maintain our strong track record of delivering long-term, compounding shareholder returns.”
