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Elior UKLast Updated: 28 June 2006Activities | Timeline | Financial Snapshot | Operating Data | Strategy | Chief Executive | Key Directors | Contact | Commentary ActivitiesElior UK (known as Avenance UK until 2005) is the UK’s fourth largest contract caterer. Its main activities are in business and industry and concession catering (in motorways, airports and railways). The company feeds more than 250,000 people a year through more than 600 restaurants, of which 460 are staff restaurants. It is owned by Groupe Elior of France, which is the world’s fourth biggest player and operates in 12 countries. The UK company has been built up from a number of acquisitions since 1992. Due to its rapid expansion over the previous three years, it was streamlined in March 2005. As a result, its key operating companies Avenance and Eliance Restaurants and subsidiaries such as Digby Trout Restaurants and Azure have been integrated into a single operation under the Elior UK name. The group now operates as two divisions:
Its key brands, including franchised names include Mojo coffee, Flavours, Paul patisserie, Delifrance and Puccino's. Timeline
Financial snapshotFull year Half year These figures are for Groupe Elior of France Operating dataBreakdown of interim figures for the six months to 31 March 2006 Concession catering and travel retail Strategy"Taking into account the effect of the public protests that took place in France in the education sector and the impact of the rise in fuel prices on motorway traffic, the group expects organic growth in sales of between 5% and 6% on a comparable basis and a stable operating margin for the 2005/2006 fiscal year compared to last year. Elior notes the importance of the contribution of the second half of the year on the Concessions results." Source: interim results statement, 7 June 2006 Chief executiveMike Audis Key directorsCo-chairman of Groupe Elior: Robert Zolade Contact33 St John’s Lane Tel: 020 7336 7052 E-mail: CommentaryElior UK, which holds 4% of the UK contract catering market, is looking to expand its presence in sectors which are currently a minor part of its activities. In 2003, 90% of group turnover came from the business and industry sector. The plan is to increase the contribution made by health, education and defence contracts to 40% of total sales. In January 2004, the group set up a new sales and marketing office in London and recruited a new sales team for these three sectors. As part of its expansion drive, it also recruited specialists in food innovation, creative design, diet and nutrition, market research and retailing. The group has dropped its veto on state school contracts (where it felt the food was poor quality and under-funded) but has made it clear it will not chase contracts with an ingredient cost below 55p a meal. It is also keen to boost the 98-strong concessions business handled by Eliance Restaurants and Digby Trout Restaurants, whose portfolio includes historic sites such as Edinburgh Castle, the British Museum and the Tower of London along with 16 in-store restaurants in 13 House of Fraser shops in London and Scotland. Although Elior UK has pulled out of Motorway Service Areas (a major part of its parent group’s business) due to the lack of purchasing opportunities in the UK, it is out to challenge Compass’s dominance in airports, railway stations and museums. As part of its bid to raise standards, the group has put more than 150 chefs on placements in prestigious and Michelin-star restaurants in recent years.
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