Compass, the world's biggest caterer, has revealed a drop in first half profits.
Pre-tax profits fell 14.5 per cent to £124 million in the period, following a warning last month by the group. Sales, however, were up six per cent on a like-for-like basis, on turnover of £6.2 billion.
Chief executive Michael Bailey said: "I am not happy with our recent performance. We need to respond more rapidly than we have to the changes taking place in our market."
He intends to show some "care and attention" to the firm’s business model in order to improve earnings. The company is rolling out a restructuring drive that Bailey believes will lead to savings of £50m over the coming 18 months.
Its buying arm will be shaken up in an effort to reduce food costs as well as improve productivity.
Compass provides food for schools and owns the Harry Ramsden, Upper Crust and Caffe Ritazza brands.
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