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Sheffield Hallam University Alumni Event,11th November Ian Sarson Group Managing Director UK&I Agenda • My Career • Compass Group • Our UK and Ireland Business • My first 7 months at the helm • Any Questions Who is Ian Sarson? • Group Managing Director, Compass Group UK & Ireland • OND/HND Student (1984) in Hotel,Catering and Institutional Mgt • 30 years in the hospitality industry • International experience • Visiting Fellow at SHU (4th year) • Married with two daughters (1 studying at SHU!!) • 7 years with Compass • Chair of Compass International Healthcare Forum Compass Group PLC Revenue >£14 bn (FY 2010) Over 40,000 client locations Portfolio of market leading sector brands 386,000 employees globally 90 of fortune 100 companies are our clients 4 billion meals a year served Global reach in more than 50 countries Position 35th in the FTSE 100 Index £5.6m Worldwide charitable donations 2009 A world leading food services and support services company Our Vision “To be a world-class provider of contract food and support services renowned for our great people, our great service and our great results.” Delivering our vision • Attracting and retaining great people • Delivering great food, services and events • Driving relentlessly to be the lowest sensible price provider • Empowering our teams and delivering our promises • Setting the highest standards for health, safety, corporate governance and the impact we have on our communities and the environment Compass Coverage 2008/9 Audited Accounts Group North America Continental Europe United Kingdom Rest of the World £11,440m 2007/8: £10,268m £4,553m 2007/8: £4,206m £3,021m 2007/8: £2,553m £1,926m 2007/8: £1,931m £1,940 2007/8: £1,578m Underlying operating profit £720m 2006/7: £583m Underlying operating profit £311m 2006/7: £264m Underlying operating profit £197m 2006/7: £151m Underlying operating profit £108m 2006/7: £107m Underlying operating profit3 £104m 2006/7: £61m Compass Group UK & Ireland UK & Ireland Revenue - £1.8 bn (FY 2009) 14% of Compass Group Revenue Over 7,000 sites Multi service contracts make up 30+% of our income 56,000 employees 2nd largest cleaner in the NHS 3 million transactions per day 1,200 retail outlets in the workplace 4th Largest Security company in the UK Two Michelin Star restaurants Leading provider of Hospitality in Sports and Leisure Compass Group is the UK and Ireland market leader Our market share is the size of our top two competitors combined Services are provided by our Sectors Business and Industry Defence and Offshore Fine Dining Sports and Leisure Healthcare Corporate Hospitality Senior Living Venue Sales Education Specialist Event Catering Security Some new and retained accounts for this year DMGT Some of Our Sports and Leisure Portfolio Corporate Responsibility Run our business to the highest ethical standards We are committed to growing responsibly with a clear corporate vision and strategy. Make a positive contribution to the communities in which we live and work Support the good health and wellbeing of our customers Reduce our impact on the world in which we live We measure our performance against our five pillars NOTE: Robin to update People Agenda • • • • • • 11,500 face to face training days this year E-learning – 19,330 completed One Compass Welcome, 12,300 completing and Health and Safety e-learning 4,600 NVQ/ apprentices this year 700 unit managers hired centrally this year MFV 555 trained last year - MFA 500 to be trained before end Dec • Evolve management trainee programme 80 graduates – 87 new participants • 57 people on Compass Academy • 34,000 completed Your Voice survey – 73% satisfaction rate UK economic backdrop - challenging Fragile recovery following largest recession since records began in 1955 Source: ONS Unemployment at 2.47 million, 7.8% highest levels since 1995 Inflation (RPI) at 4.7% Consumer Price Index (CPI) at 3.1% Interest rates at record low of 0.5% since March 09 Retail Sales fell in August 0.5% due to worries about tax rises and budget cuts £200bn quantitative easing regime CSR has heightened consumer concern Economic backdrop – outlook of impact on Compass Consumers adapting to new economy – changing behaviours Corporates and Public sector seeking subsidy reduction/removal and contractor profit squeeze Hospitality not returning – changed forever ???? Weak pound continues to threaten food costs (food inflation pressure & VAT increase) New UK Government tackling national debt (public sector spending / union activity) Compounded by Geographic challenges e.g.; Wheat price increases in Russia Recovery fragile - double dip remains possible My first 225 (146 working) days • Comprehensive restructure and reduction of central functions (reduced by 23%, 220 Roles) • Merged our Marketing and Purchasing and Supply chain teams to create a new Commercial Directorate • Supported the winning of £70m new business • Announced the closure of the UK Head Office • Acquired the UK’s 4th Largest Security Company • Chaired Compass International Healthcare forum (in Toronto) • Helped reduce internal e-mail traffic by 50% (900k e-mails per month) My first 225 (146 working) days • Ultimately responsible for >600m customer experiences • Delivered 42 presentations • Met with 98 clients • Represent Compass in the Government’s Responsibility Deal chaired by Sec of State for Health (Andrew Lansley) • Met with 3 other Secretary’s of State (Education, DEFRA and Defence) • Attended far too many lunches and dinners In Summary • Managing change is the core competence of our business • It is possible to land your dream job • Our sector provides infinite variety and growth potential • Compass is a Great company to join for a long term and potentially international career • If I can do it, anybody can!!!! Thanks for listening…. Any Questions