French catering and facilities management firm Sodexo, a major employer in Scotland, today said it had seen a slowdown in new business opportunities in the UK amid Brexit uncertainties.
However in a trading update today the company, which supplies many North Sea facilities, said it believed the group’s business should not be “materially impacted” by the UK leaving the European Union.
“Action plans have been put in place to limit the impact of a hard/no deal Brexit on food prices and availability,” it said.
Although there had been a slowdown in new business opportunities the group stressed that sales growth remains “solid”.
The update came as the firm – the world’s second biggest caterer after Compass - said organic revenue growth for the first nine months of its financial year was better than expected at 3.5%. However, it said the fourth quarter will be impacted by factors including some contract losses, particularly in North America and in the Sports & Leisure segment.
In Europe, organic sales growth held steady at 2.3% and the firm said its North Sea performance was “stabilising”.
Although overall revenue growth for the full year is expected to be around 3%, at the top end of earlier guidance, underlying operating profit margins are now expected to come it at the bottom end of guidance.
