Compass points in right direction

There was also a reinvigorated performance from Compass's European and Japanese businesses. Sales have contracted here in the recent past but a cost reduction programme started in 2012-13 has allowed the group to reinvest in these regions. This self-help measure has helped deliver renewed organic growth of almost 2 per cent this year, momentum Mr Cousins says was helped by "some economic stabilisation".

The fast-growing emerging markets division saw operating profits rise 6.3 per cent on a constant currency basis, but down 3.5 per cent when currency movements are factored in. Progress here was held back by reduced headcounts across the gas, oil and iron ore sectors. The pressure from low commodity prices on such industries has meant fewer staff for Compass to feed. There were also £26m worth of restructuring costs, which had been announced by the group in July.

A key improvement has been client retention rates, particularly in the UK, thanks to the decision to bring what Mr Cousins called "best practices" over from the US. This work is focused on the structure of the sales team, which includes a strategic alliances group tasked with making sure existing clients remain with the company. This is crucial considering the size of some of the major blue-chip businesses Compass serves, including Apple, Sony and Google. Mr Cousins says overall retention rates, which were 90 per cent prior to the practices being introduced in the UK, have now improved to 94.5 per cent, which is "making a material impact on the top and bottom line".

Analysts at Numis expect pre-tax profits of £1.2bn in the 2016 financial year, giving EPS of 55.7p, up from £1.19bn and 53.7p last year.