Axing loss-making school meals contracts boosts Initial

Initial Facilities Services has credited its decision to withdraw from unprofitable school dinner deals, post Jamie Oliver’s campaign, for an improved performance.

The Rentokil Initial Group-owned firm, which operates in school meals catering through its Eden Foodservice brand, said the decision in 2007 had helped it improve profit on flat revenue growth, delivering “substantially improved results”.

The division’s hospital services business, which provides cleaning, catering and porterage services to NHS hospitals in the UK and the independent healthcare sector, increased revenue by 3.5% year-on-year as well.

Although Initial doesn’t provide a specific breakdown for catering in its annual results, the Initial Facilities Services division, which it sits within, saw turnover increase 3.2% to £605.1m in the year ended 31 December 2008. Operating profit improved 3.9% to £40.2m.

Eden Foodservice has just announced a £2.7m Devon school meals deal win.

Eden Foodservice wins Southampton schools deal >>

Eden Foodservice wins Wales school meals contract >>

Autograph Foodservice boosts Tesco contract >>

Eden denies it will quit state school catering >>

By Chris Druce

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