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REG - Compass Group PLC - Full year results <Origin Href="QuoteRef">CPG.L</Origin> - Part 1

CompassAnnouncement

24/11/2015 07:02

RNS Number : 7239G
Compass Group PLC
24 November 2015
Compass Group
Full year results announcement for the year ended 30 September 2015
Strong performance delivering growth and returns to shareholders

Underlying¹ Year on year change² Reported
Revenue 17.8 billion +5.8%³ 17.6 billion
Operating profit before restructuring 1,322 million +6.7% -
Operating margin before restructuring 7.3% +10bps -
Operating profit after restructuring 1,296 million +4.6% 1,261 million
Operating margin after restructuring 7.2% - 7.1%
Earnings per share 53.7 pence +11.0% 52.3 pence
Free cash flow 722 million -2.0% 686 million
Full year dividend per share 29.4 pence +10.9% -
¹ Full details of the underlying column can be found on page 62.
² Measured on a constant currency basis, with the exception of free cash flow and full year dividend.
³ Organic revenue growth.
Excellent organic revenue growth of 5.8%
 Another strong year in North America with sales up 7.9%
 Accelerating growth in Europe & Japan - revenue up nearly 3% in H2 and 1.9% in the year
 Emerging markets growth of 11% more than offsets weakness in Australia
Underlying margin progress of 10bps before restructuring costs
 The Management and Performance (MAP) programme continues to drive operating efficiencies 
 Restructuring plan announced in July on track to deliver the expected savings
Growth, performance and returns to shareholders: a proven and sustainable model 
 Proposed full year dividend up 10.9%, in line with constant currency EPS growth
 Remain committed to ongoing returns to shareholders with 328 million of share buybacks in 2015
 Expectations for 2016 are positive and unchanged
Chief Executive's Statement
Richard Cousins, Group Chief Executive, said:
"Compass has had another strong year. North America continues to deliver excellent growth. Our business in Europe & Japan is enjoying a strong recovery as we are rewarded for our investment to accelerate growth in the region. Our Fast Growing & Emerging region continues to perform well despite lower volumes and pricing pressures in the Offshore & Remote sector, and in some emerging markets. 
We continue to drive operating efficiencies around the business, which we are partly reinvesting in the growth opportunities we see across the Group. Excluding the 26 million of restructuring costs announced in July, underlying operating margin for the Group improved by 10 basis points. 
Our expectations for 2016 are positive and unchanged. The pipeline of new contracts is strong, and the savings from the restructuring, together with the margin improvement in the rest of the Group, are expected to offset the impact of lower volumes and pricing pressures in our Fast Growing & Emerging region. 
In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue growth, margin improvement, as well as continued returns to shareholders through dividends and ongoing share buybacks."
Enquiries
Investors Sandra Moura +44 1932 573 000
Media Clare Hunt +44 1932 573 116
Website www.compass-group.com 
Chief Executive's Statement (continued)
Group overview
Revenue for the Group increased by 5.8% on an organic basis. Underlying revenue at reported rates increased by 4.6% reflecting the strengthening of sterling against many of the Group's key currencies, which was partly offset by the benefit of the strengthening of the US dollar. 
New business wins were 8.8%, driven by a strong performance in MAP 1 (client sales and marketing) in North America and Fast Growing & Emerging and accelerating growth in Europe & Japan. Our retention rate improved and is now 94.5% reflecting our ongoing focus and investment.
We aim to increase consumer participation and spend through MAP 2 (consumer sales and marketing) initiatives. This combined with a more benign macroeconomic environment in many of our markets resulted in like for like revenue growth of 2.5% reflecting modest price increases and improving volumes in North America and Europe & Japan. In Fast Growing & Emerging we have seen like for like weakness in some emerging markets and in our Offshore & Remote business.
On 29 July 2015, we announced that in addition to our ongoing restructuring activities - which partly help us deliver yearly efficiencies - we are proactively reducing the cost base in our Offshore & Remote business globally and in some emerging markets. This incremental restructuring cost of around 50 million, will be included in operating profit. In 2015, we incurred a 26 million charge, most of which was for labour cost reductions, with 9 million non-cash. We expect the remaining 20-25 million of restructuring costs to be incurred in 2016. 
Excluding the impact of the restructuring, organic operating profit increased by 6.5% and the underlying operating margin improved by 10 basis points as we continue to drive efficiencies across the business using our management and performance framework, MAP. We have maintained our focus on MAP 3 (cost of food) with initiatives such as menu planning and supplier rationalisation, as well as continually optimising MAP 4 (labour and in unit costs) and MAP 5 (above unit costs). These efficiencies are helping us to invest to support the exciting growth opportunities we see around the world and deliver further margin improvement. After restructuring costs, underlying operating profit increased by 4.6% on a constant currency basis, with the underlying operating margin remaining flat. 
Returns to shareholders continue be an integral part of our business model. The Group bought back 328 million worth of shares in the year and going forward we will continue to maintain strong investment grade credit ratings, returning any surplus cash to shareholders to target net debt/ EBITDA of around 1.5x.
Chief Executive's Statement (continued)
Regional performances
North America - 52.5% Group revenue (2014: 48.1%)
Underlying Change
Regional financial summary 2015 2014 Reported Constant currency Organic
Revenue 9,361m 8,199m 14.2% 7.8% 7.9%
Operating profit 760m 666m 14.1% 7.6% 7.2%
Operating margin 8.1% 8.1% - 
Our North American business has delivered another strong performance with organic revenue growth of 7.9%. This was driven by good new business wins and excellent retention rates. We have seen some like for like volume improvement across most of the business that has been partly offset by volume and price weakness in the Offshore & Remote sector. 
Underlying operating profit increased 7.2% on an organic basis, to 760 million. The benefits generated by ongoing efficiency programmes and the leveraging of the overhead base have been reinvested to drive and support the higher levels of growth and offset the impact of lower like for like in the Offshore & Remote sector. As a result the underlying operating margin for the year remained flat at 8.1%. 
Business & Industry has again delivered good levels of net new business combined with some positive like for like volumes. Contract wins include Kimberly-Clark and Rogers Communications Inc. 
In the Healthcare & Seniors sector organic revenue growth was driven by new contracts for both food and support services including Genesis Health Systems. We have also expanded our relationship with Community Health Systems through increased locations and services.
Organic revenue growth in the Education sector came from net new business and increased levels of participation. Contract wins include Emory University, Chesterfield County Public Schools and Kennesaw State University. 
Our Sports & Leisure business has delivered excellent organic revenue growth with near 100% retention and strong attendance levels at sporting events. Contract wins include the Mapfre Stadium, home of the Columbus Crew Major League Soccer team and Videotron Centre in Quebec City.
The recent decline in key commodity prices has impacted like for like revenue in the Offshore & Remote business, however, new contracts continue to be won including Manitoba Hydro and Emera Inc. 
Chief Executive's Statement (continued)
Europe & Japan - 30.7% Group revenue (2014: 33.5%) 
Underlying Change
Regional financial summary 2015 2014 Reported Constant currency Organic
Revenue 5,469m 5,716m (4.3)% 2.0% 1.9%
Operating profit 397m 409m (2.9)% 3.7% 3.7%
Operating margin 7.3% 7.2% 10bps 
The top line momentum seen in the first half of the year continued. As a result, organic revenue growth in Europe & Japan was 1.9% in the full year and nearly 3% in the second half. This performance was driven by improving rates of net new business, reflecting the investments made over the last two years in our sales and retention teams. Like for like volumes remained broadly flat. 
Accelerating levels of new business, especially in the UK, Spain and Japan, combined with improving retention rates across the region drove the positive net new performance. We have expanded our relationship with several clients including Sony in Japan, Continental in Germany and our defence portfolio in France. We have won new contracts with the Universidad de Navarra and the Rafa Nadal Sports Centre, both in Spain, Weston Park and Entrust in the UK and a senior living contract with Le Noble Age in France. Retained contracts include the National College of Technology in Japan, ISE Andalucia in Spain, and the Edinburgh International Conference Centre, Kettering Hospital and the Ricoh Arena in the UK.
Like for like volumes in the UK, Germany and parts of central Europe show an improving trend, however this is being offset by ongoing weakness in France and our exposure to the oil and gas market in the North Sea.
We continue to focus on operational efficiencies and cost reductions, to support the growth we are seeing and improve the operating margin. As a result, underlying operating profit grew organically by 3.7% to 397 million and the underlying operating margin improved by 10 basis points to 7.3%. 
Chief Executive's Statement (continued)
Fast Growing & Emerging - 16.8% Group revenue (2014: 18.4%)
Underlying Change
Regional financial summary
(Before EM & OR restructuring costs) 2015 2014 Reported Constant currency Organic
Revenue 3,013m 3,143m (4.1)% 6.1% 6.9%
Operating profit 218m 226m (3.5)% 6.3% 6.8%
Operating margin 7.2% 7.2% - 
Organic revenue growth for the region was 6.9%. Emerging markets delivered organic revenue growth of 11% driven by strong new business, which helped mitigate the expected decline in Australia. Underlying operating profit, before EM & OR restructuring costs, grew organically by 6.8% to 218 million. Further progress was made in driving operational efficiencies that have been used to support growth and offset the weakness in like for like volumes in some emerging markets and pressures in our Offshore & Remote business across the region. The underlying operating margin remained at 7.2%. 
In Australia, the Offshore & Remote business declined by 6%, as expected, with clients reducing headcounts on site, construction projects coming to an end and some production contracts being mothballed. However, as clients look to consolidate their contract portfolios we have won new business with BHP Billiton to provide support services across several locations and have retained contracts including Glencore. Other sectors continue to perform well and we have won new business with The University of New England, multisite contracts with both Mars and Nestle, and Target stores where we have developed an instore caf offering. 
Our other Offshore & Remote business in the rest of the region has seen some growth driven by new business wins across Latin America, including, in Chile, BHP 7000 and Abengoa, a solar project in the Atacama Desert. This has more than offset the difficult oil and gas environment. Encouragingly we have just signed a new seven year contract with an existing client to build and operate a new remote camp in our CAMEAT region. 
Double digit organic revenue growth in each of Brazil and Turkey reflected good new business wins, offset in part by some sharp declines in like for like volumes driven by challenging macroeconomic conditions. A continued focus on cost efficiencies has helped to partially mitigate the pressure from high cost inflation and declining volumes. New contract wins include the provision of multi services to Grupo Marista and food services to Coca Cola in Brazil and Doa schools and Carrefour in Turkey. 
A strong new business performance in the Middle East included contracts with Al Ain Hospital, Corniche Hospital, Beach Mall and additional military sites. In South Africa we have retained contracts with Nedbank and RCL Foods.
Elsewhere in the region, New Zealand enjoyed good levels of organic growth including the signing of a 15 year contract with the Government to provide food services to public hospitals and the expansion of our relationship with the Defence force. Double digit organic growth in India and China was driven by new business wins including SMIC Private School Shanghai and HAECO, an aircraft engineering group in Hong Kong.
Chief Executive's Statement (continued)
Strategy
Focused on food 
Food is our focus and our core competence. The food service market is estimated to be more than 200 billion; with only around 50% of the market currently outsourced, it represents a significant opportunity. We believe the benefits of outsourcing become increasingly apparent as economic conditions and regulatory changes put increasing pressure on organisations' budgets. As one of the largest providers in all of our sectors, we are well placed to benefit from these trends.
Our approach to support and multi services is low risk and incremental, with strategies developed on a country by country basis. Our largest sector in this market is Defence, Offshore & Remote, where the model is almost universally multi service. In addition, we have an excellent support services business in North America and some operations in other parts of the world. This is a complex segment and there are significant differences in client buying behaviour across countries, sectors and sub-sectors. 
Geographic spread 
We have a truly international business, with operations in over 50 countries. Our three geographic regions comprise countries with similar market characteristics or at similar stages of development.
North America (52% of Group revenue) is likely to remain the principal growth engine for the Group. We have a market leading business, which delivers high levels of growth by combining the cost advantage of our scale with a segmented client facing sector approach. The outsourcing culture is vibrant and the addressable market is significant. 
The fundamentals of our businesses in Europe & Japan (31% of Group revenue) are good and we see many opportunities to drive growth in revenue and margin. Our investment in MAP 1 sales and retention has accelerated our organic revenue growth and we continue to see opportunities to drive efficiencies and make our operations more competitive.
Fast Growing & Emerging (17% of Group revenue) offers excellent long term growth potential. Our largest markets are Australia, Brazil and Turkey, and we are growing rapidly in India and China. Lower commodity prices and a weak macroeconomic backdrop have impacted our Offshore & Remote business and some of our emerging markets in the year. We are in the process of restructuring our business where necessary to adapt to the changing market environment, and remain excited about the attractive long term growth prospects of the region. 
In 2016 we will change the way we run the business and will adjust our regional reporting accordingly. Going forward our three regions will be: North America (unchanged), Europe (including Turkey and Russia) and Rest of World (including Japan). We will publish restated historical financials on 19 January 2016. 
Sectorised approach
We segment the market and create sectors and sub-sectors to develop customised dining solutions that meet the requirements of a growing range of clients and consumers. Our portfolio of B2B brands enables us to differentiate these propositions and maximise our market coverage, while benefiting from the cost advantages of scale in food procurement and back office costs. 
Chief Executive's Statement (continued)
Scale 
As we continue to grow, our scale enables us to achieve our goal of being the lowest cost, most efficient provider of food and support services. Scale is a benefit in terms of food procurement, labour management and back office costs. It underpins our competitiveness and enables us to deliver sustainable growth over time.
MAP culture
We speak one common 'MAP' language. All our employees use a simple framework to drive performance across the business. This framework helps us focus on a common set of business drivers, whether it is winning new business in the right sector on the right terms (MAP 1), increasing our consumer participation and spend (MAP 2), reducing our food costs (MAP 3), or labour costs (MAP 4 and 5). 
Uses of cash and balance sheet priorities
The Group's cash flow generation remains excellent and it will continue to be a key part of the business model. Our priorities for how we use our cash remain unchanged. We will continue to: (i) invest in the business to support organic growth where we see opportunities with good returns; (ii) pursue M&A opportunities, our preference is for small to medium sized infill acquisitions, where we look for returns greater than our cost of capital by the end of year two; (iii) grow the dividend in line with earnings per share; and (iv) maintain strong investment grade credit ratings returning any surplus cash to shareholders to target net debt / EBITDA of around 1.5x. 
Summary and outlook
Compass has had another strong year. North America continues to deliver excellent growth. Our business in Europe & Japan is enjoying a strong recovery as we are rewarded for our investment to accelerate growth in the region. Our Fast Growing & Emerging region continues to perform well despite lower volumes and pricing pressures in the Offshore & Remote sector, and in some emerging markets. 
We continue to drive operating efficiencies around the business, which we are partly reinvesting in the growth opportunities we see across the Group. Excluding the 26 million of restructuring costs announced in July, underlying operating margin for the Group improved by 10 basis points. 
Our expectations for 2016 are positive and unchanged. The pipeline of new contracts is strong, and the savings from the restructuring, together with the margin improvement in the rest of the Group, are expected to offset the impact of lower volumes and pricing pressures in our Fast Growing & Emerging region. 
In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue growth, margin improvement, as well as continued returns to shareholders through dividends and ongoing share buybacks.
Richard Cousins
Group Chief Executive
24 November 2015
 
Business Review
Financial summary
2015 2014 Increase / (Decrease)
Continuing operations
Revenue 
Underlying at constant currency 17,843m 16,891m 5.6%
Underlying at reported rates 17,843m 17,058m 4.6%
Reported 17,590m 16,854m 4.4%
Organic growth 5.8% 4.1% 
Total operating profit 
Underlying, before EM & OR restructuring, at constant currency 1,322m 1,239m 6.7%
Underlying at constant currency 1,296m 1,239m 4.6%
Underlying at reported rates 1,296m 1,245m 4.1%
Reported 1,261m 1,214m 3.9%
Organic growth, before EM & OR restructuring 6.5% 5.5% 
Operating margin 
Underlying, before EM & OR restructuring, at reported rates 7.3% 7.2% +10bps
Underlying at reported rates 7.2% 7.2% -
Reported 7.1% 7.1% -
Profit before tax 
Underlying at constant currency 1,192m 1,153m 3.4%
Underlying at reported rates 1,192m 1,159m 2.8%
Reported 1,159m 1,144m 1.3%
Basic earnings per share 
Underlying at constant currency 53.7p 48.4p 11.0%
Underlying at reported rates 53.7p 48.7p 10.3%
Reported 52.3p 48.8p 7.2%
Free cash flow 
Underlying 722m 737m (2.0)%
Reported 686m 679m 1.0%
Total Group including discontinued operations
Basic earnings per share 52.3p 49.0p 6.7%
Full year dividend per ordinary share 29.4p 26.5p 10.9%
Business Review (continued)
Segmental performance
Underlying revenue Underlying revenue growth
2015 2014 Constant 
m m Reported Currency Organic
Continuing operations 
North America 9,361 8,199 14.2% 7.8% 7.9%
Europe & Japan 5,469 5,716 (4.3)% 2.0% 1.9%
Fast Growing & Emerging 3,013 3,143 (4.1)% 6.1% 6.9%
Total 17,843 17,058 4.6% 5.6% 5.8%
Underlying operating profit Underlying operating margin 
2015 2014 2015 2014 
m m % % 
Continuing operations 
North America 760 666 8.1% 8.1% 
Europe & Japan 397 409 7.3% 7.2% 
Fast Growing & Emerging 218 226 7.2% 7.2% 
Unallocated overheads (66) (65) 
Total before associates and EM & OR restructuring 1,309 1,236 7.3% 7.2% 
Associates 13 9 
Total before EM & OR restructuring 1,322 1,245 
EM & OR restructuring (26) 
- 
Total 1,296 1,245 
1 Unless stated otherwise the data shown on pages 1 - 13 relates to the continuing business only.
2 Definitions of underlying measures of performance can be found in the glossary on page 62.
Business Review (continued)
Revenue
Organic revenue growth for the year was 5.8%, comprising new business of 8.8%, a retention rate of 94.5% and like for like growth of 2.5%. The weakening of sterling against the US dollar has been more than offset by its strength against the majority of the Group's other key currencies, giving rise to a 1% negative impact from currency translation. Underlying revenue at reported rates therefore grew by 4.6%.
Operating profit
Underlying operating profit after restructuring was 1,296 million (2014: 1,245 million), an increase of 4.1%. If we restate 2014's profit at the 2015 average exchange rates for the year, it would reduce by 6 million. On a constant currency basis, underlying operating profit has therefore increased by 57 million, or 4.6%. 
EM & OR restructuring
The Group has incurred a 26 million charge in the year as a result of reducing the cost base in our Offshore & Remote business globally and in some emerging markets. The cost relates to headcount reductions (17 million) and onerous contract provisions (9 million). Excluding these restructuring costs, underlying operating profit would have been 1,322 million, an increase of 83 million or 6.7% on a constant currency basis.
Finance costs 
The underlying net finance cost was 104 million (2014: 86 million), including a 5 million (2014: 7 million) charge relating to the pension deficit. The increase reflects a full year of the additional debt required to finance the 1 billion Return of Cash to shareholders in July 2014.For 2016, we expect an underlying net finance cost of around 110 million. This equates to an effective interest rate of around 3.5% on gross debt.
Income tax expense
Income tax expense from continuing operations was 282 million (2014: 276 million).
On an underlying basis, the tax charge was 292 million (2014: 293 million), equivalent to an effective tax rate of 24.5% (2014: 25.3%). The reduction largely reflects the fall in the UK corporate tax rate. We expect the tax rate to be around the same level in 2016.
Basic earnings per share
Basic earnings per share, including discontinued operations, were 52.3 pence (2014: 49.0 pence). 
On an underlying basis, the basic earnings per share were 53.7 pence (2014: 48.7 pence). After adjusting for currency movements, basic earnings per share increased by 11%.
Attributable Profit Basic Earnings per Share
2015 2014 2015 2014 Change
m m pence pence %
Reported 869 865 52.3 49.0 6.7%
Discontinued operations - (3) - (0.2) -
Other adjustments 23 (2) 1.4 (0.1) -
Underlying 892 860 53.7 48.7 10.3%
Currency - (5) - (0.3) -
Constant currency 892 855 53.7 48.4 11.0%
Business Review (continued)
Dividends
It is proposed that a final dividend of 19.6 pence per share be paid on 22 February 2016 to shareholders on the register on 22 January 2016. This will result in a total dividend for the year of 29.4 pence per share (2014: 26.5 pence per share), a year on year increase of 10.9%. The dividend is covered 1.8 times on an underlying earnings basis. We remain committed to growing the dividend in line with earnings and maintaining this level of cover.
Free cash flow
Free cash flow totalled 686 million (2014: 679 million). During the year, we incurred a 36 million outflow in respect of the European exceptional programme (2014: 58 million). Adjusting for this, free cash flow on an underlying basis was 722 million (2014: 737 million).
Underlying gross capital expenditure of 507 million (2014: 471 million) is equivalent to 2.8% of underlying revenues (2014: 2.7% of underlying revenues), slightly above the historic rates as we invest in the return of Europe to growth. We believe this rate will continue. In addition, in 2016 we will be investing in a camp in our CAMEAT region as part of a long term contract extension with an existing client. We expect that capex in 2016 will therefore be around 3% of underlying revenues.
Excluding pensions and provisions, trade working capital has increased by 17 million (2014: 14 million) as changes in terms and growth in the emerging markets offset the natural inflow from growth in North America. Looking forward, annual trade working capital movements are expected to average out at a small outflow. In 2016 we will also have a negative impact of around 70 million due to the timing of our payroll run in September in the USA and UK. This will reverse in 2018.
The cash outflow of 59 million (2014: 46 million) on post-employment benefit obligations largely reflects payments agreed with trustees to reduce deficits on defined benefit pension schemes. These regular deficit repayments are expected to continue going forward. 
The underlying cash tax rate for the year was 20% (2014: 23%).The rate was slightly lower than the short to medium term expected level in the mid-20s.
The net interest outflow for the year was 93 million (2014: 71 million), reflecting the higher level of debt following the 
1 billion Return of Cash to shareholders in July 2014. 
Acquisition payments
The total cash spend on acquisitions in the year, net of cash acquired, was 89 million (2014: 128 million). This includes 74 million of infill acquisitions, 2 million on acquisition transaction costs and 13 million of deferred consideration relating to prior years acquisitions. 
Return on capital employed 
Return on capital employed was 19.1% (2014: 19.3%) based on underlying operations, net of tax at the effective underlying rate of 24.5% (2014: 25.3%), and excluding the Group's non-controlling partners' share of total operating profit. The average capital employed was 5,093 million (2014: 4,799 million), based on the 12 month average net assets, adding back net debt, post-employment benefit obligations (net of associated deferred tax), amortised intangibles arising on acquisition and excluding the Group's non-controlling partners' share of net assets.
Post-employment benefit obligations
The Group has continued to review and monitor its pension obligations throughout the year working closely with the trustees and members of schemes around the Group to ensure proper and prudent assumptions are used and adequate provision and contributions are made. 
The Group's pension deficit at 30 September 2015, calculatedin accordance with IAS 19, for all Group defined benefit schemeswas 9 million (2014: 170 million). The total pensions charge for defined contribution schemes in the year was 84 million (2014: 85 million) and 21 million (2014: 19 million) for defined benefit schemes. Included in the defined benefit scheme costs was a 5 million charge to net finance cost (2014: 7 million).
Business Review (continued)
Purchase of own shares
During the year, the Group purchased shares for a consideration of 328 million to complete the 500 million share buyback programme announced in November 2013. 
Related party transactions
Details of transactions with related parties are set out in the Annual Report. These transactions have not had, and are not expected to have, a material effect on the financial performance or position of the Group.
Financial position
The ratio of net debt to market capitalisation of 17,446 million as at 30 September 2015 was 15% (2014: 14%).
At the end of the year, net debt was 2,603 million (2014: 2,371 million).
Risks and uncertainties
The Board takes a proactive approach to risk management with the aim of protecting its employees and customers and safeguarding the interests of the Group and its shareholders. 
The principal risks and uncertainties that face the business and the activities the Group undertakes to mitigate these are set out on pages 14 to 17.
Shareholder return
The market price of the Group's ordinary shares at the close of the financial year was 1053.00 pence per share 
(2014: 996.50 pence per share).
Going concern
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Business Review, as is the financial position of the Group, its cash flows, liquidity position, and borrowing facilities. In addition, note 19 includes the Group's objectives, policies and processes for managing its capital, its financial risk management objectives, details of its financial instruments and hedging activities and its exposures to credit risk and liquidity risk.
The Group has considerable financial resources together with longer term contracts with a number of customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.
After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Dominic Blakemore
Group Finance Director
24 November 2015
Focus on Risk  
Identifying and managing risk
The Board continues to take a proactive approach to recognising and mitigating risk with the aim of protecting its employees and consumers and safeguarding the interests of the Company and its shareholders in the constantly changing environment in which it operates.
As set out in the Corporate Governance section within the Annual Report, the Group has policies and procedures in place to ensure that risks are properly identified, evaluated and managed at the appropriate level within the business.
The identification of risks and opportunities, the development of action plans to manage the risks and maximise the opportunities, and the continual monitoring of progress against agreed key performance indicators (KPIs) are integral parts of the business process, and core activities throughout the Group.
The table below sets out the principal risks and uncertainties facing the business at the date of this Announcement. These have been subject to robust assessment and review. They do not comprise all of the risks that the Group may face and are not listed in any order of priority. Additional risks and uncertainties not presently known to management or deemed to be less material at the date of this Announcement may also have an adverse effect on the Group. In accordance with the provisions of the UK Corporate Governance Code 2014, the Board has taken into consideration the principal risks in the context of determining whether to adopt the going concern basis of accounting and when assessing the prospects of the Company for the purpose of preparing the Viability Statement. The Going Concern and Viability Statements may be found in the Strategic Report, within the 2015 Annual Report.
The Group faces a number of operational risks on an ongoing basis such as litigation and financial (including liquidity and credit) risk and some wider risks, for example, environmental and reputational. Additionally, there are risks (such as those relating to the eurozone economy, pensions, and acquisitions and investments) which vary in importance depending on changing conditions. All risks disclosed in previous years can be found in the Annual Reports available on our website at www.compass-group.com. We recognise that these risks remain important to the business and they are kept under review. However, we have focused the disclosures on pages 14 to 17 on those risks that are currently considered to be more significant to the Group.
Change in risk key
Risk Description Examples of Mitigation
Health and safety Health and safety is our number one operational priority. We are focused on protecting people's wellbeing, as well as avoiding serious business interruption and potential damage to our reputation. Compass feeds millions of consumers and employs thousands of people around the world every day. Therefore setting the highest standards for food hygiene and safety is paramount.
All management meetings throughout the Group feature a health and safety update as their first agenda item.
Health and safety improvement KPIs are included in the annual bonus plans for each of the business' management teams.
The Group has policies, procedures and standards in place to ensure compliance with legal obligations and industry standards.
The safety and quality of our global supply chain are assured through compliance against a robust set of standards which are regularly reviewed, audited and upgraded as necessary to improve supply chain visibility and product integrity.
Focus on Risk(continued)
Risk Description Examples of Mitigation
Clients and Consumers
Client and consumer sales 
and retention
Our business relies on securing and retaining a diverse range of clients. 
We have strategies which strengthen our long term relationships with our clients and consumers based on quality, value and innovation.
Our business model is structured so that we are not reliant on one particular sector, geography or group of clients. 
Bidding
Each year, the Group could bid for a large number of opportunities.
A rigorous tender review process is in place, which includes a critical assessment of contracts to identify potential risks (including social and ethical risks) and rewards, prior to approval at an appropriate level in the organisation.
Service delivery and contractual compliance
The Group's operating companies contract with a large number of clients. Failure to comply with the terms of these contracts, including proper delivery of services, could lead to loss of business.
Processes are in place to ensure that the services delivered to clients are of an appropriate standard and comply with the required contract terms and conditions.
Competition
We operate in a highly competitive marketplace. The level of concentration and outsource penetration varies by country and by sector. Some markets are relatively concentrated with two or three key players, others are highly fragmented and offer significant opportunities for consolidation and penetration of the self-operated market. Aggressive pricing from our competitors could cause a reduction in our revenues and margins. We aim to minimise this by continuing to promote our differentiated propositions and focusing on our points of strength, such as flexibility in our cost base, quality and value of service and innovation.
Focus on Risk(continued)
Risk Description Examples of Mitigation
People
Recruitment
Failure to attract and recruit people with the right skills at all levels could limit the success of the Group. The Group faces resourcing challenges in some of its businesses due to a lack of industry experience amongst candidates and appropriately qualified people, and the seasonal nature of some of our business. The Group aims to mitigate this risk by efficient, time critical resource management, mobilisation of existing, experienced employees within the organisation and through offering training and development programmes.
Retention and motivation
Retaining and motivating the best people with the right skills, at all levels of the organisation, is key to the long term success of the Group. The Group has established training, development, performance management and reward programmes to retain, develop and motivate our best people.
The Group has a well-established employee engagement initiative, Your Voice, which helps us to monitor, understand and respond to our employees' needs.
Economic and political environment
Economy
Some sectors of our business could be susceptible to adverse changes in economic conditions and employment levels.
With the variable and flexible nature of our cost base, it is generally possible to contain the impact of these adverse conditions.
Cost inflation
Our objective is always to deliver the right level of service in the most efficient way. An increase in the cost of labour for example minimum wages in the USA and UK, or food especially in countries such as Turkey and Brazil, could constitute a risk to our ability to do this. As part of our MAP framework, we seek to manage inflation through continuing to drive greater efficiencies through menu management, supplier rationalisation, labour scheduling and productivity. Cost indexation in our contracts also gives us the contractual right to review pricing with our clients.
Political stability
We are a global business operating in countries and regions with diverse economic and political conditions. Our operations and earnings may be adversely affected by political or economic instability. The Group remains vigilant to future changes presented by emerging markets or fledgling administrations and we try to anticipate and contribute to important changes in public policy.
Focus on Risk(continued)
Risk Description Examples of Mitigation
Compliance and fraud
Compliance and fraud
Ineffective compliance management with laws and regulations, or evidence of fraud, could have an adverse effect on the Group's reputation and could result in an adverse impact on the Group's performance if significant financial penalties are levied or a criminal action is brought against the Company or its directors. The Group's zero tolerance based Codes of Business Conduct and Ethics govern all aspects of our relationships with our stakeholders. All alleged breaches of the Codes, including any allegations of fraud, are investigated.
The Group's procedures include regular operating reviews, underpinned by a continual focus on ensuring the effectiveness of internal controls. 
Regulation and compliance risk is also considered as part of our annual business planning process.
Tax compliance
As a Group, we seek to plan and manage our tax affairs efficiently in the jurisdictions in which we operate. In doing so, we act in compliance with the relevant laws and disclosure requirements. However, in an increasingly complex international corporate tax environment, a degree of uncertainty is inevitable and we note in particular the policy efforts being led by the EU and the OECD which may have a material impact on the taxation of all international businesses. We manage and control these risks in a proactive manner and in doing so exercise our judgement and seek appropriate advice from reputable professional firms. Tax risks are assessed as part of the Group's formal governance process and are reviewed by the Board and the Audit Committee on a regular basis.
Information systems and technology
Information systems 
and technology The digital world creates many risks for a global business including technology failures, loss of confidential data and damage to brand reputation. We seek to assess and manage the maturity of our enterprise risk and security infrastructure and our ability to effectively defend against current and future cyber risks by using analysis tools and experienced professionals to evaluate and mitigate potential impacts.
The Group relies on a variety of IT systems in order to manage and deliver services and communicate with our clients, consumers, suppliers and employees.
We are focused on the need to maximise the effectiveness of our information systems and technology as a business enabler and to reduce both cost and exposure as a result.
Compass Group PLC
Consolidated Financial Statements
CONSOLIDATED INCOME STATEMENT 
FOR THE YEAR ENDED 30 SEPTEMBER 2015 
Total Total 
Notes 2015 2014 Restated¹ 
m m 
CONTINUING OPERATIONS 
Combined sales of Group and share of equity accounted joint ventures 1 17,843 17,058 
Less: share of sales of equity accounted joint ventures (253) (204) 
Revenue 17,590 16,854 
Operating costs 2 (16,368) (15,670) 
Operating costs, excluding Emerging Markets and Offshore & Remote restructuring (16,342) (15,670) 
Emerging Markets and Offshore & Remote restructuring (26) - 
Operating profit before joint ventures and associates 1,222 1,184 
Share of profit after tax of joint ventures and associates 1,12 39 30 
Operating profit 1 1,261 1,214 
Underlying operating profit 1 1,296 1,245 
Amortisation of intangibles arising on acquisition 10 (26) (25) 
Acquisition transaction costs 25 (2) (3) 
Adjustment to contingent consideration on acquisition (5) - 
Tax on share of profit of joint ventures (2) (3) 
(Loss)/profit on disposal of US businesses (1) 1 
Profit on disposal of interest in associates - 13 
Finance income 4 3 5 
Finance costs 4 (107) (91) 
Other financing items 4 3 2 
Profit before tax 1,159 1,144 
Income tax expense 5 (282) (276) 
Profit for the year from continuing operations 1 877 868 
DISCONTINUED OPERATIONS 
Profit for the year from discontinued operations 6 - 3 
CONTINUING AND DISCONTINUED OPERATIONS 
Profit for the year 877 871 
ATTRIBUTABLE TO 
Equity shareholders of the Company 7 869 865 
Non-controlling interests 8 6 
Profit for the year 877 871 
BASIC EARNINGS PER SHARE (PENCE) 
From continuing operations 7 52.3p 48.8p 
From discontinued operations 7 - 0.2p 
From continuing and discontinued operations 7 52.3p 49.0p 
DILUTED EARNINGS PER SHARE (PENCE) 
From continuing operations 7 52.2p 48.7p 
From discontinued operations 7 - 0.2p 
From continuing and discontinued operations 7 52.2p 48.9p 
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
2 Underlying operating profit excludes amortisation of intangibles arising on acquisition, acquisition transaction costs and adjustment to contingent consideration on acquisition, but includes share of profit after tax of associates and operating profit of joint ventures. 
Compass Group PLC
Consolidated Financial Statements(continued)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
FOR THE YEAR ENDED 30 SEPTEMBER 2015 
Notes 2015 2014 Restated¹
m m
Profit for the year 877 871
Other comprehensive income 
Items that are not reclassified subsequently to profit or loss 
Remeasurement of post-employment benefit obligations - loss 22 (37) (146)
Return on plan assets, excluding interest income - gain 22 145 137
Tax on items relating to the components of other comprehensive income 5 (20) 3
88 (6)
Items that may be reclassified subsequently to profit or loss 
Currency translation differences (92) (103)
(92) (103)
Total other comprehensive loss for the year (4) (109)
Total comprehensive income for the year 873 762
ATTRIBUTABLE TO 
Equity shareholders of the Company 865 756
Non-controlling interests 8 6
Total comprehensive income for the year 873 762
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11. 
Compass Group PLC
Consolidated Financial Statements(continued)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
FOR THE YEAR ENDED 30 SEPTEMBER 2015 
Attributable to equity shareholders of the Company 
Share premium account Capital redemption reserve 
Own shares Other reserves Retained earnings Non- controlling interests 
Share capital Total 
m m m m m m m m 
At 1 October 2014 178 174 293 (1) 4,277 (3,082) 9 1,848 
Profit for the year - - - - - 869 8 877 
Other comprehensive income 
Currency translation differences - - - - (92) - - (92) 
Remeasurement of post-employment benefit obligations - loss - - - - - (37) - (37) 
Return on plan assets, excluding interest income - gain - - - - - 145 - 145 
Tax on items relating to the components of other comprehensive income - - - - (1) (19) - (20) 
Total other comprehensive (loss)/income - - - - (93) 89 - (4) 
Total comprehensive (loss)/income for the year - - - - (93) 958 8 873 
Issue of shares (for cash) - 2 - - - - - 2 
Fair value of share-based payments - - - - 15 - - 15 
Tax on items taken directly to equity (note 5) - - - - - 2 - 2 
Share buyback ¹ (2) - 2 - - (328) - (328) 
Receipts from issue of treasury shares to satisfy employee share scheme awards exercised - - - - - 1 - 1 
Release of LTIP award settled by issue of new shares - 6 - - (6) - - - 
Other changes - - - - (4) 2 2 - 
176 182 295 (1) 4,189 (2,447) 19 2,413 
Dividends paid to Compass shareholders (note 8) - - - - - (457) - (457) 
Dividends paid to non-controlling interests - - - - - - (6) (6) 
At 30 September 2015 176 182 295 (1) 4,189 (2,904) 13 1,950 
1 Including stamp duty and brokers' commission. 
Share-based payment reserve Adjustment for MI put options reserve 
Merger reserve Revaluation reserve Translation reserve Total other reserves 
OTHER RESERVES m m m m m m 
At 1 October 2014 170 4,170 7 (70) - 4,277 
Other comprehensive income 
Currency translation differences - - - (92) - (92) 
Tax on items relating to the components of other comprehensive income (note 5) - - - (1) - (1) 
Total other comprehensive loss - - - (93) - (93) 
Fair value of share-based payments 15 - - - - 15 
Release of LTIP award settled by issue of new shares (6) - - - - (6) 
Other changes - - - 2 (6) (4) 
At 30 September 2015 179 4,170 7 (161) (6) 4,189 
Own shares held by the Group represent 27,799 ordinary shares in Compass Group PLC (2014: 54,941 ordinary shares). 11,601 (2014: 38,743) shares are held by the Compass Group Employee Share Trust (ESOP) and 16,198 (2014: 16,198) shares by the Compass Group Long Term Incentive Plan Trust (LTIPT). These shares are listed on a recognised stock exchange and their market value at 30 September 2015 was 0.3 million (2014: 0.5 million). The nominal value held at 30 September 2015 was 2,954 (2014: 5,837).

ESOP and LTIPT are discretionary trusts for the benefit of employees and the shares held are used to satisfy some of the Group's liabilities to employees for share options, share bonus and long term incentive plans. All of the shares held by the ESOP and LTIPT are required to be made available in this way.
From 17 June 2015, repurchased ordinary shares were transferred and held in treasury for the purpose of satisfying the Company's obligations under employee equity incentive schemes.
The merger reserve arose in 2000 following the demerger from Granada Compass plc. 
Compass Group PLC
Consolidated Financial Statements(continued)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
FOR THE YEAR ENDED 30 SEPTEMBER 2015 
Attributable to equity shareholders of the Company 
Share premium account
m Capital redemption reserve
m 
Non- controlling interests
m 
Share capital
m Own shares
m Other reserves
m Retained earnings Restated¹
m 
Total Restated¹
m 
At 1 October 2013 180 400 55 (1) 4,374 (2,227) 9 2,790 
Profit for the year - - - - - 865 6 871 
Other comprehensive income 
Currency translation differences - - - - (103) - - (103) 
Remeasurement of post-employment benefit obligations - loss - - - - - (146) - (146) 
Return on plan assets, excluding interest income - gain - - - - - 137 - 137 
Tax on items relating to the components of other comprehensive income - - - - (3) 6 - 3 
Total other comprehensive loss - - - - (106) (3) - (109) 
Total comprehensive (loss)/income for the year - - - - (106) 862 6 762 
Issue of shares (for cash) 1 6 - - - - - 7 
Share issue expenses - (2) - - - - - (2) 
B and C shares issued through capitalisation of share premium 235 (235) - - - - - - 
Redemption and cancellation of B shares (235) - 235 - - - - - 
Fair value of share-based payments - - - - 13 - - 13 
Tax on items taken directly to equity (note 5)
Share buyback ² - - - - - 6 - 6 
(3) - 3 - - (280) - (280) 
Release of LTIP award settled by issue of new shares - 5 - - (5) - - - 
Other changes - - - - 1 1 (1) 1 
178 174 293 (1) 4,277 (1,638) 14 3,297 
Return of Cash to Compass shareholders (note 8) - - - - - (1,000) - (1,000) 
Dividends paid to Compass shareholders (note 8) - - - - - (444) - (444) 
Dividends paid to non-controlling interests - - - - - - (5) (5) 
At 30 September 2014 178 174 293 (1) 4,277 (3,082) 9 1,848 
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11.
2 Including stamp duty and brokers' commission.
Share-based payment reserve 
Merger reserve Revaluation reserve Translation reserve Total other reserves
OTHER RESERVES 
m m m m m
At 1 October 2013 162 4,170 7 35 4,374
Other comprehensive income 
Currency translation differences - - - (103) (103)
Tax on items relating to the components of other comprehensive income - - - (3) (3)
Total other comprehensive loss - - - (106) (106)
Fair value of share-based payments 13 - - - 13
Release of LTIP award settled by issue of new shares (5) - - - (5)
Other changes - - - 1 1
At 30 September 2014 170 4,170 7 (70) 4,277
Compass Group PLC
Consolidated Financial Statements(continued)
CONSOLIDATED BALANCE SHEET 
AS AT 30 SEPTEMBER 2015 
Notes 2015 2014 Restated ¹
m m
NON-CURRENT ASSETS 
Goodwill 9 3,538 3,528
Other intangible assets 10 1,130 1,010
Property, plant and equipment 11 764 724
Interests in joint ventures and associates 12 203 189
Other investments 13 38 36
Trade and other receivables 14 71 70
Deferred tax assets* 5 182 246
Derivative financial instruments** 19 58 50
Non-current assets 5,984 5,853
CURRENT ASSETS 
Inventories 16 282 265
Trade and other receivables 14 2,115 2,069
Tax recoverable* 64 32
Cash and cash equivalents** 17 283 408
Derivative financial instruments** 19 19 16
Current assets 2,763 2,790
Total assets 8,747 8,643
CURRENT LIABILITIES 
Short term borrowings²** 18 (247) (315)
Derivative financial instruments** 19 (7) (4)
Provisions 21 (136) (161)
Current tax liabilities* (169) (148)
Trade and other payables² 20 (3,157) (3,077)
Current liabilities (3,716) (3,705)
NON-CURRENT LIABILITIES 
Long term borrowings** 18 (2,684) (2,525)
Derivative financial instruments** 19 (25) (1)
Post-employment benefit obligations 22 (9) (170)
Provisions 21 (251) (277)
Deferred tax liabilities* 5 (28) (39)
Trade and other payables 20 (84) (78)
Non-current liabilities (3,081) (3,090)
Total liabilities (6,797) (6,795)
Net assets 1,950 1,848
EQUITY 
Share capital 23 176 178
Share premium account 182 174
Capital redemption reserve 295 293
Less: Own shares (1) (1)
Other reserves 4,189 4,277
Retained earnings (2,904) (3,082)
Total equity shareholders' funds 1,937 1,839
Non-controlling interests 13 9
Total equity 1,950 1,848
* Component of current and deferred taxes. ** Component of net debt. 
¹ 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
² 2014 has been restated to reflect a reclassification between other payables and short term borrowings. 
Approved by the Board of Directors on 24 November 2015 and signed on their behalf by 
RICHARD COUSINS, Director 
DOMINIC BLAKEMORE, Director 
Compass Group PLC
Consolidated Financial Statements(continued)
CONSOLIDATED CASH FLOW STATEMENT 
FOR THE YEAR ENDED 30 SEPTEMBER 2015 
2015 2014 Restated ¹
Notes m m
CASH FLOW FROM OPERATING ACTIVITIES 
Cash generated from operations 26 1,476 1,417
Interest paid (96) (77)
Tax received 19 24
Tax paid (261) (266)
Net cash from operating activities 1,138 1,098
CASH FLOW FROM INVESTING ACTIVITIES 
Purchase of subsidiary companies and investments in associated undertakings² (89) (176)
Proceeds from sale of subsidiary companies and associated undertakings - discontinued activities² 6 - (1)
Proceeds from sale of subsidiary companies and associated undertakings - continuing activities² 3 66
Tax on profits from sale of subsidiary companies and associated undertakings - (4)
Purchase of intangible assets 10 (222) (206)
Purchase of property, plant and equipment³ (282) (261)
Proceeds from sale of property, plant and equipment/intangible assets 28 22
Purchase of other investments 13 (1) (2)
Proceeds from sale of other investments 1 3
Dividends received from joint ventures and associates 27 22
Interest received 3 6
Net cash used in investing activities (532) (531)
CASH FLOW FROM FINANCING ACTIVITIES 
Proceeds from issue of ordinary share capital 2 5
Purchase of own shares⁴ (328) (280)
Receipts from issue of Treasury shares to satisfy employee share scheme awards exercised 1 -
Increase in borrowings⁵ 27 334 671
Repayment of loan notes⁵ 27 (250) (74)
Repayment of obligations under finance leases 27 (5) (5)
Return of Cash to Compass shareholders 8 - (1,000)
Equity dividends paid 8 (457) (444)
Dividends paid to non-controlling interests (6) (3)
Net cash used in financing activities (709) (1,130)
CASH AND CASH EQUIVALENTS 
Net decrease in cash and cash equivalents 27 (103) (563)
Cash and cash equivalents at beginning of the year 27 408 987
Currency translation losses on cash and cash equivalents 27 (22) (16)
Cash and cash equivalents at end of the year 27 283 408
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 Net of cash acquired or disposed and payments received or made under warranties and indemnities.
3 Includes property, plant and equipment purchased under client commitments.
4 Includes stamp duty and brokers' commission.
5 2014 re-presented to show gross up of net increase in borrowings.
Compass Group PLC
Consolidated Financial Statements(continued)
RECONCILIATION OF FREE CASH FLOW FROM CONTINUING OPERATIONS 
FOR THE YEAR ENDED 30 SEPTEMBER 2015
2015 2014 Restated ¹
m m
Net cash from operating activities of continuing operations 1,138 1,098
Purchase of intangible assets (222) (206)
Purchase of property, plant and equipment (282) (261)
Proceeds from sale of property, plant and equipment/intangible assets 28 22
Purchase of other investments (1) (2)
Proceeds from sale of other investments 1 3
Dividends received from joint ventures and associates 27 22
Interest received 3 6
Dividends paid to non-controlling interests (6) (3)
Free cash flow from continuing operations 686 679
Add back: Europe & Japan cash restructuring costs in the year 36 58
Underlying free cash flow 722 737
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11. 
Compass Group PLC
Consolidated Financial Statements(continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 30 SEPTEMBER 2015 
The financial information included within this announcement has been prepared using accounting policies in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted for use in the European Union (EU), and in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Conduct Authority. The financial information set out below does not constitute the Company's statutory accounts for the years ended 30 September 2015 or 2014, but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered following the Company's Annual General Meeting. The Auditor has reported on those accounts; its Reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying its Report and did not contain statements under s498(2) or (3) Companies Act 2006.
1 SEGMENTAL REPORTING
The management of the Group's operations, excluding Central activities, is organised within three segments: North America, the more developed markets of Europe & Japan and our Fast Growing & Emerging markets. These, together with Central activities, comprise the Group's reportable segments. These segments comprise countries which are at similar stages of development and demonstrate similar economic characteristics. Each segment derives revenue from delivery of food and support services. 
Geographical segments 
North Europe & Fast Growing 
America Japan & Emerging Total
REVENUE ¹ m m m m
YEAR ENDED 30 SEPTEMBER 2015 
Combined sales of Group and share of equity accounted joint ventures^2,3 9,361 5,469 3,013 17,843
YEAR ENDED 30 SEPTEMBER 2014 
Combined sales of Group and share of equity accounted joint ventures^2,3 8,199 5,716 3,143 17,058
Sectors 
Defence, 
Business Healthcare Sports Offshore 
REVENUE ¹  & Industry Education & Seniors & Leisure & Remote Total
m m m m m m
YEAR ENDED 30 SEPTEMBER 2015 
Combined sales of Group and share of equity accounted joint ventures² 6,743 3,139 3,847 2,138 1,976 17,843
YEAR ENDED 30 SEPTEMBER 2014 
Combined sales of Group and share of equity accounted joint ventures² 6,783 2,815 3,515 1,857 2,088 17,058
1 There is no inter-segmental trading.
2 This is the revenue measure considered by the chief operating decision maker.
3 Continuing underlying revenue from external customers arising in the UK, the Group's country of domicile, was 1,912 million (2014: 1,787 million). Continuing underlying revenue from external customers arising in the US was 8,557 million (2014: 7,413 million). Continuing underlying revenue from external customers arising in all foreign countries from which the Group derives revenue was 15,931 million (2014: 15,271 million).
Compass Group PLC
Consolidated Financial Statements(continued)
1 SEGMENTAL REPORTING CONTINUED
Geographical segments 
North Europe & Fast Growing Central 
America Japan & Emerging activities Total 
RESULT m m m m m 
YEAR ENDED 30 SEPTEMBER 2015 
Underlying operating profit before joint ventures and associates and Emerging Markets and Offshore & Remote restructuring 759 395 193 (66) 1,281 
Add: Share of profit of joint ventures 1 2 25 - 28 
Underlying operating profit before associates and Emerging Markets and Offshore & Remote restructuring 760 397 218 (66) 1,309 
Add: Share of profit of associates 8 5 - - 13 
Underlying operating profit before Emerging Markets and Offshore & Remote restructuring 768 402 218 (66) 1,322 
Less: Emerging Markets and Offshore & Remote restructuring¹ - - (21) (5) (26) 
Underlying operating profit² 768 402 197 (71) 1,296 
Less: Amortisation of intangibles arising on acquisition (15) (5) (6) - (26) 
Less: Acquisition transaction costs (2) - - - (2) 
Less: Tax on share of profit of joint ventures - (1) (1) - (2) 
Add: Adjustment to contingent consideration on acquisition (5) - - - (5) 
Total operating profit - continuing 746 396 190 (71) 1,261 
Loss on disposal of US business (1) 
Finance income 3 
Finance costs (107) 
Other financing items 3 
Profit before tax 1,159 
Income tax expense (282) 
Profit for the year from continuing operations 877 
Geographical segments 
North Europe & Fast Growing Central 
America Japan & Emerging activities Total
RESULT m m m m m
YEAR ENDED 30 SEPTEMBER 2014³ 
Underlying operating profit before joint ventures and associates 666 406 205 (65) 1,212
Add: Share of profit of joint ventures - 3 21 - 24
Underlying operating profit before associates 666 409 226 (65) 1,236
Add: Share of profit before tax of associates 6 3 - - 9
Underlying operating profit² 672 412 226 (65) 1,245
Less: Amortisation of intangibles arising on acquisition (12) (5) (8) - (25)
Less: Acquisition transaction costs (2) (1) - - (3)
Less: Tax on share of profit of joint ventures - (1) (2) - (3)
Add: Adjustment to contingent consideration on acquisition 1 - (1) - -
Total operating profit - continuing 659 405 215 (65) 1,214
Profit on disposal of US businesses 1
Profit on disposal of interest in associates 13
Finance income 5
Finance costs (91)
Other financings items 2
Profit before tax 1,144
Income tax expense (276)
Profit for the year from continuing operations 868
1 The Group has incurred charges resulting from the restructuring and downturn in the trading conditions of its Emerging Markets and Offshore & Remote activities which include headcount reductions (17 million) and onerous contract provisions (9 million).
2 Underlying operating profit is the profit measure considered by the chief operating decision maker.
3 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15
Compass Group PLC
Consolidated Financial Statements(continued)
2 OPERATING COSTS 
Total Total
OPERATING COSTS² 2015 2014 Restated ¹
m m
Cost of food and materials: 
Cost of inventories consumed 5,219 5,027
Labour costs: 
Employee remuneration (note 3) 7,959 7,720
Overheads: 
Depreciation - owned property, plant and equipment 190 185
Depreciation -leased property, plant and equipment 3 4
Amortisation - owned intangible assets 147 128
Property lease rentals 74 79
Other occupancy rentals - minimum guaranteed rent 64 62
Other occupancy rentals - rent in excess of minimum guaranteed rent 11 13
Other asset rentals 72 76
Audit and non-audit services 5 6
Emerging Markets and Offshore & Remote restructuring 26 -
Other expenses 2,565 2,342
Operating costs before costs relating to acquisitions 16,335 15,642
Amortisation - intangible assets arising on acquisition 26 25
Acquisition transaction costs 2 3
Adjustment to contingent consideration on acquisition 5 -
Total continuing operations 16,368 15,670
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 Operating costs excludes costs relating to Emerging Markets and Offshore & Remote restructuring, which comprise 17 million employee remuneration, 2 million depreciation owned property, plant and equipment, 1 million property lease rentals and 6 million other expenses (2014: nil).
Compass Group PLC
Consolidated Financial Statements(continued)
3 EMPLOYEES 
AVERAGE NUMBER OF EMPLOYEES, INCLUDING DIRECTORS AND PART-TIME EMPLOYEES 2015 2014 Restated ¹
Number Number
North America 226,618 214,511
Europe & Japan 150,816 150,847
Fast Growing & Emerging 138,430 138,179
Total continuing operations 515,864 503,537
AGGREGATE REMUNERATION OF ALL EMPLOYEES INCLUDING DIRECTORS 2015 ² 2014 Restated ³
m m
Wages and salaries 6,708 6,444
Social security costs 1,136 1,164
Share-based payments 15 15
Pension costs - defined contribution plans 84 85
Pension costs - defined benefit plans 16 12
Total continuing operations 7,959 7,720
1 2014 has been restated to reflect the average number of employees on a consistent basis with current year. 
2 Aggregate remuneration of all employees including directors excludes Emerging Markets and Offshore & Remote restructuring costs of 17 million.
3 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11. 
Compass Group PLC
Consolidated Financial Statements(continued)
4 FINANCE INCOME, COSTS AND RELATED (GAINS)/LOSSES 
Finance income and costs are recognised in the income statement in the period in which they are earned or incurred. 
FINANCE INCOME AND COSTS 2015 2014 
m m 
FINANCE INCOME 
Bank interest 3 5 
Total finance income 3 5 
FINANCE COST 
Interest on bank loans and overdrafts 13 11 
Interest on other loans 82 69 
Finance lease interest 1 1 
Interest on bank loans, overdrafts, other loans and finance leases 96 81 
Unwinding of discount on provisions 6 3 
Interest on net post-employment benefit obligations (note 22) 5 7 
Total finance costs 107 91 
ANALYSIS OF FINANCE COSTS BY DEFINED IAS 39 CATEGORY 
Fair value through profit or loss(unhedged derivatives) 5 4 
Derivatives in a fair value hedge relationship (23) (28) 
Derivatives in a net investment hedge relationship 5 3 
Other financial liabilities 109 102 
Interest on bank loans, overdrafts, other loans and finance leases 96 81 
Fair value through profit or loss (unwinding of discount on provisions) 6 3 
Outside of the scope of IAS 39 (net pension scheme charge) 5 7 
Total finance costs 107 91 
1 IAS 39 'Financial Instruments: Recognition and Measurement'. 
The Group uses derivative financial instruments such as forward currency contracts, cross currency swaps and interest rate swaps to hedge the risks associated with changes in foreign currency exchange rates and interest rates. As explained in section Q of the Group's accounting policies in the 2015 Annual Report, such derivative financial instruments are initially measured at fair value on the contract date, and areremeasured to fair value at subsequent reporting dates. For derivative financial instruments that do not qualify for hedge accounting, any gains or losses arising from changes in fair value are taken directly to the income statement in the period. 
FAIR VALUE MEASUREMENT 
All derivative financial instruments are shown at fair value in the balance sheet. All the derivatives held by the Group at fair value are considered to have fair values determined by Level 2 inputs as defined by the fair value hierarchy of IFRS 13 'Fair value measurement'. The fair values of derivative financial instruments represent the maximum credit exposure.
2015 2014
FINANCING RELATED (GAINS)/LOSSES m m
HEDGE ACCOUNTING INEFFECTIVENESS 
Unrealised net losses on unhedged derivative financial instruments¹ 3 -
Unrealised net gains on derivative financial instruments in a designated fair value hedge² (32) (23)
Unrealised net losses on the hedged item in a designated fair value hedge 26 23
Total hedge accounting ineffectiveness (3) -
CHANGE IN THE FAIR VALUE OF INVESTMENTS 
Gain from the changes in the fair value of investments^1,3 - (2)
1 Categorised as derivatives that are designated and effective as hedging instruments carried at fair value (IAS 39).
2 Categorised as 'fair value through profit or loss' (IAS 39).
3 Life insurance policies used by overseas companies to meet the cost of unfunded post-employment benefit obligations included in note 22.
Compass Group PLC
Consolidated Financial Statements(continued)
5 TAX 
RECOGNISED IN THE INCOME STATEMENT: 2015 2014 Restated ¹
INCOME TAX EXPENSE ON CONTINUING OPERATIONS m m 
CURRENT TAX 
Current year 284 269
Adjustment in respect of prior years (24) 1
Current tax expense 260 270
DEFERRED TAX 
Current year 12 9
Impact of changes in statutory tax rates 1 1
Adjustment in respect of prior years 9 (4)
Deferred tax expense 22 6
TOTAL INCOME TAX 
Income tax expense on continuing operations 282 276
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
The income tax expense for the year is based on the effective UK statutory rate of corporation tax for the period of 20.5% (2014: 22.0%). The impact of changes in statutory rates in the prior year related principally to the reduction of the UK corporation tax rate from 21% to 20% from 1 April 2015. In the Budget on 8 July 2015, the Chancellor announced additional planned reductions in the UK corporation tax rate to 18% by 2020. We expect the new rates to reduce the current tax charge in future years, however as they were not substantively enacted at the balance sheet date, they have not been brought into account in calculating the deferred tax asset at 30 September 2015. Overseas tax is calculated at the rates prevailing in the respective jurisdictions.
2014
2015 Restated ¹
m m 
Profit before tax from continuing operations 1,159 1,144
Notional income tax expense at the effective UK statutory rate of 20.5% (2014: 22.0%) on profit before tax 238 252
Effect of different tax rates of subsidiaries operating in other jurisdictions 136 116
Impact of changes in statutory tax rates 1 1
Permanent differences (74) (83)
Impact of share-based payments 1 1
Tax on profit of associates and equity accounted joint ventures (3) (4)
Losses and other temporary differences not previously recognised (6) (7)
Unrelieved current year tax losses 4 3
Prior year items (15) (3)
Income tax expense on continuing operations 282 276
2015 2014
TAX (CHARGED)/CREDITED TO OTHER COMPREHENSIVE INCOME m m
Current and deferred tax (charges)/credits on actuarial and other movements on post-employment benefits (19) 6
Current and deferred tax (charges) on foreign exchange movements (1) (3)
Tax (charge)/credit on items recognised in other comprehensive income (20) 3
2015 2014
Tax credited to equity m m
Current and deferred tax credits in respect of share-based payments 2 6
Tax credit on items recognised in equity 2 6
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
5 TAX CONTINUED 
MOVEMENT IN NET DEFERRED TAX ASSET/(LIABILITY) Tax depreciation Intangibles Pensions and post-employment benefits Tax losses Self-funded insurance provisions Net short-term 
temporary differences Total Restated¹
m m m m m m m
At 1 October 2013 9 (183) 136 21 64 180 227
Credit/(charge) to income 4 (7) 7 1 3 (14) (6)
(Charge)/credit to equity/other comprehensive income - - (6) - - 1 (5)
Business acquisitions - (6) - - - 1 (5)
Other movements - - - 1 - (1) -
Exchange adjustment - 5 (1) (2) - (6) (4)
At 30 September 2014¹ 13 (191) 136 21 67 161 207
At 1 October 2014 13 (191) 136 21 67 161 207
(Charge)/credit to income (4) (13) 3 1 (1) (8) (22)
Charge to equity/other comprehensive income - - (28) - - (3) (31)
Business acquisitions - (4) - - - 1 (3)
Other movements - (1) - 1 - (1) (1)
Exchange adjustment (2) 1 7 (2) 5 (5) 4
At 30 September 2015 7 (208) 118 21 71 145 154
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Net short term temporary differences relate principally to provisions and other liabilities of overseas subsidiaries. 
After netting off balances within countries, the following are the deferred tax assets and liabilities recognised in the consolidated balance sheet:
2015 2014
NET DEFERRED TAX BALANCE m m
Deferred tax assets 182 246
Deferred tax liabilities (28) (39)
Net deferred tax asset 154 207
Unrecognised deferred tax assets in respect of tax losses and other temporary differences amount to 39 million (2014: 42 million). Of the total, 25 million relates to tax losses which will expire at various dates between 2015 and 2022. These deferred tax assets have not been recognised as the timing of recovery is uncertain.
The Group does not recognise any deferred tax liability on temporary differences relating to potentially taxable unremitted earnings of overseas subsidiaries totalling 370 million (2014: 448 million) because it is able to control the timing of reversal of these differences. It is probable that no reversal will take place in the foreseeable future.
Compass Group PLC
Consolidated Financial Statements(continued)
6 DISCONTINUED OPERATIONS 

The profit for the year from discontinued operations was nil (2014: 3 million). 
FINANCIAL PERFORMANCE OF DISCONTINUED OPERATIONS 2015 2014
m m
TRADING ACTIVITIES OF DISCONTINUED OPERATIONS 
Operating costs - -
Loss before tax - -
Income tax credit - 3
Profit after tax - 3
PROFIT FOR THE YEAR FROM DISCONTINUED OPERATIONS 
Profit for the year from discontinued operations - 3
INCOME TAX FROM DISCONTINUED OPERATIONS 2015 2014
m m
INCOME TAX ON TRADING ACTIVITIES OF DISCONTINUED OPERATIONS AND ON DISPOSAL OF NET ASSETS AND OTHER ADJUSTMENTS RELATING TO DISCONTINUED OPERATIONS 
Current tax - 3
Deferred tax - -
Income tax credit on discontinued operations - 3
Net assets disposed and disposal proceeds 2015 2014
m m
Decrease in retained liabilities¹ - (1)
Consideration (net of costs) - (1)
Cash outflow from disposals - (1)
1 Includes the utilisation of disposal provisions of 1 million in the year ended 30 September 2014.
Compass Group PLC
Consolidated Financial Statements(continued)
7 EARNINGS PER SHARE 
The calculation of earnings per share is based on earnings after tax and the weighted average number of shares in issue during the year. The adjusted earnings per share figures have been calculated based on earnings excluding the effect of discontinued operations, the amortisation of intangible assets arising on acquisition, acquisition transaction costs, adjustment to contingent consideration on acquisition, European exceptional, gains and losses on disposal of businesses, hedge accounting ineffectiveness, change in fair value of investments and the tax attributable to these amounts. These items are excluded in order to show the underlying trading performance of the Group.
2015 2014 
Attributable Attributable 
ATTRIBUTABLE PROFIT profit profit 
m m 
Profit for the year attributable to equity shareholders of the Company 869 865 
Less: Profit for the year from discontinued operations - (3) 
Attributable profit for the year from continuing operations 869 862 
Amortisation of intangible assets arising on acquisition (net of tax) 20 18 
Acquisition transaction costs (net of tax) 1 2 
Adjustment to contingent consideration on acquisition (net of tax) 3 1 
European exceptional (net of tax) - (7) 
Loss/(profit) on disposal of US businesses (net of tax) 1 (1) 
Profit on disposal of interest in associate (net of tax) - (13) 
Hedge accounting ineffectiveness (net of tax) (2) - 
Profit from change in the fair value of investments (net of tax) - (2) 
Underlying attributable profit for the year from continuing operations 892 860 
2015 2014
Ordinary shares Ordinary shares
AVERAGE NUMBER OF SHARES (MILLIONS OF ORDINARY SHARES) of 10 5/8p each of 10 5/8p each
millions millions
Average number of shares for basic earnings per share 1,662 1,766
Dilutive share options 4 5
Average number of shares for diluted earnings per share 1,666 1,771
Compass Group PLC
Consolidated Financial Statements(continued)
7 EARNINGS PER SHARE CONTINUED
2015 2014
Earnings Earnings
per share per share 
pence pence
BASIC EARNINGS PER SHARE (PENCE) 
From continuing and discontinued operations 52.3 49.0
From discontinued operations - (0.2)
From continuing operations 52.3 48.8
Amortisation of intangible assets arising on acquisition (net of tax) 1.2 1.0
Acquisition transaction costs (net of tax) 0.1 0.1
Adjustment to contingent consideration on acquisition (net of tax) 0.2 0.1
European exceptional (net of tax) - (0.4)
Loss/(profit) on disposal of US businesses (net of tax) 0.1 (0.1)
Profit on disposal of interest in associate (net of tax) - (0.7)
Hedge accounting ineffectiveness (net of tax) (0.2) -
Profit from change in the fair value of investments (net of tax) - (0.1)
From underlying continuing operations 53.7 48.7
DILUTED EARNINGS PER SHARE (PENCE) 
From continuing and discontinued operations 52.2 48.9
From discontinued operations - (0.2)
From continuing operations 52.2 48.7
Amortisation of intangible assets arising on acquisition (net of tax) 1.2 1.0
Acquisition transaction costs (net of tax) 0.1 0.1
Adjustment to contingent consideration on acquisition (net of tax) 0.2 0.1
European exceptional (net of tax) - (0.4)
Loss/(profit) on disposal of US Corrections businesses (net of tax) 0.1 (0.1)
Profit on disposal of interest in associate (net of tax) - (0.7)
Hedge accounting ineffectiveness (net of tax) (0.2) -
Profit from change in the fair value of investments (net of tax) - (0.1)
From underlying continuing operations 53.6 48.6
Compass Group PLC
Consolidated Financial Statements(continued)
8 DIVIDENDS 
A final dividend in respect of 2015 of 19.6 pence per share, 323 million in aggregate¹, has been proposed, giving a total dividend in respect of 2015 of 29.4 pence per share (2014: 26.5 pence per share). The proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 4 February 2016 and has not been included as a liability in these financial statements.
2015 2014
Dividends Dividends 
DIVIDENDS ON ORDINARY SHARES per share per share 
pence m pence m
Amounts recognised as distributions to equity shareholders during the year: 
Final 2013 - 16.0p per share - - 16.0p 287
Interim 2014 - 8.8p per share - - 8.8p 157
Final 2014 - 17.7p per share 17.7p 295 - -
Interim 2015 - 9.8p per share 9.8p 162 - -
Total dividends 27.5p 457 24.8p 444
1 Based on the number of ordinary shares, excluding Treasury shares, in issue at 30 September 2015 (1,648 million shares). 
In addition, a Return of Cash of 1 billion was paid to shareholders in 2014 and is described in more detail in note 23.
9 GOODWILL 
During the year the Group made a number of acquisitions. See note 25 for more details.
GOODWILL 
m
COST 
At 1 October 2013 4,071
Additions 39
Disposals (13)
Currency adjustment (87)
At 30 September 2014¹ 4,010
At 1 October 2014 4,010
Additions 25
Currency adjustment (13)
At 30 September 2015 4,022
IMPAIRMENT 
At 1 October 2013 488
Disposals (6)
At 30 September 2014 482
At 1 October 2014 482
Currency adjustment 2
At 30 September 2015 484
NET BOOK VALUE 
At 30 September 2014¹ 3,528
At 30 September 2015 3,538
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
9 GOODWILL CONTINUED
GOODWILL BY BUSINESS SEGMENT 2015 2014 Restated¹
m m
USA 1,316 1,211
Canada 125 138
Total North America 1,441 1,349
UK 1,433 1,433
Japan 124 127
Rest of Europe & Japan 282 296
Total Europe & Japan 1,839 1,856
Turkey 70 87
Rest of Fast Growing & Emerging 188 236
Total 3,538 3,528
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. The recoverable amount of a CGU is determined from value in use calculations. The key assumptions for these calculations are long term growth rates and pre-tax discount rates and use cash flow forecasts derived from the most recent financial budgets and forecasts approved by management covering a five year period. Budgets and forecasts are based on expectations of future outcomes taking into account past experience, adjusted for anticipated revenue growth, from both new business and like for like growth and taking into consideration external economic factors. Cash flows beyond the five year period are extrapolated using estimated growth rates based on local expected economic conditions and do not exceed the long term average growth rate for that country. The pre-tax discount rates are based on the Group's weighted average cost of capital adjusted for specific risks relating to the country in which the CGU operates.
2015 2014
GROWTH AND DISCOUNT RATES Residual Pre-tax Residual Pre-tax 
growth rates discount rates growth rates discount rates
USA 2.0% 10.0% 2.5% 8.5%
Rest of North America 2.0% 8.2% 2.0% 7.9%
UK 2.0% 8.2% 2.0% 8.0%
Rest of Europe & Japan 1.3-2.6% 7.6-16.0% 1.3-2.8% 7.4-16.5%
Turkey 5.1% 14.0% 4.0% 12.8%
Rest of Fast Growing & Emerging 1.9-5.7% 8.1-15.9% 1.9-7.8% 7.8-17.5%
Given the current economic climate, a sensitivity analysis has been performed in assessing recoverable amounts of goodwill for all CGUs. This has been based on changes in key assumptions considered to be reasonably possible by management. With the exception of Turkey, the directors do not consider that any reasonably possible changes in the key assumptions would cause the value in use of the net operating assets of the individually significant CGUs disclosed above to fall below their carrying values.
The book value of goodwill attributable to Turkey is 70 million with a value in use of 97 million based on management's estimates reflecting the recent downturn in Turkey's economy. Given the limited headroom of 27 million, reasonably possible changes in the key assumptions would cause the value in use of the CGU attributable to this country to fall below the carrying value of its net assets. Such changes include: a reduction in the level of cash generation of 16% as a result of, for example a decrease of 2 percentage points in the revenue growth assumptions; or an increase in the assumed discount rate of 1.5%.
Compass Group PLC
Consolidated Financial Statements(continued)
10 OTHER INTANGIBLE ASSETS 
Contract and other intangibles¹
Computer software Arising on 
acquisition Other Total
m m m m
COST 
At 1 October 2013 224 401 842 1,467
Additions 22 - 184 206
Disposals (5) - (59) (64)
Business acquisitions - 89 9 98
Business disposals - (3) - (3)
Reclassified (2) 3 4 5
Currency adjustment (7) (17) (7) (31)
At 30 September 2014 232 473 973 1,678
At 1 October 2014 232 473 973 1,678
Additions 31 - 191 222
Disposals (3) - (85) (88)
Business acquisitions - 62 - 62
Business disposals - (1) - (1)
Reclassified - (1) 2 1
Currency adjustment (6) (12) 47 29
At 30 September 2015 254 521 1,128 1,903
AMORTISATION 
At 1 October 2013 155 62 364 581
Charge for the year 21 25 107 153
Disposals (4) - (54) (58)
Business disposals - - 2 2
Reclassified - - 3 3
Currency adjustment (5) (3) (5) (13)
At 30 September 2014 167 84 417 668
At 1 October 2014 167 84 417 668
Charge for the year 21 26 126 173
Disposals (2) - (75) (77)
Reclassified - (1) - (1)
Currency adjustment (2) (6) 18 10
At 30 September 2015 184 103 486 773
NET BOOK VALUE 
At 30 September 2014 65 389 556 1,010
At 30 September 2015 70 418 642 1,130
1 Contract related intangible assets, other than those arising on acquisition, result from payments made by the Group in respect of client contracts and generally arise where it is economically more efficient for a client to purchase assets used in the performance of the contract and the Group fund these purchases. The intangible assets arising on acquisition are all contract related.
Compass Group PLC
Consolidated Financial Statements(continued)
11 PROPERTY, PLANT AND EQUIPMENT 
Land and Plant and Fixtures and 
PROPERTY, PLANT AND EQUIPMENT buildings machinery fittings Total
m m m m
COST 
At 1 October 2013 358 1,015 531 1,904
Additions¹ 29 140 79 248
Disposals (17) (79) (37) (133)
Business disposals - other activities - (12) (1) (13)
Business acquisitions 2 5 1 8
Reclassified - 8 (3) 5
Currency adjustment (16) (39) (26) (81)
At 30 September 2014² 356 1,038 544 1,938
At 1 October 2014 356 1,038 544 1,938
Additions¹ 13 171 89 273
Disposals (21) (104) (40) (165)
Business disposals - other activities - (1) - (1)
Business acquisitions 2 2 2 6
Reclassified (1) 9 (1) 7
Currency adjustment (10) (15) (29) (54)
At 30 September 2015 339 1,100 565 2,004
DEPRECIATION 
At 1 October 2013 174 666 356 1,196
Charge for the year 25 112 52 189
Disposals (16) (69) (32) (117)
Business disposals - other activities - (9) - (9)
Reclassified (1) 8 (2) 5
Currency adjustment (7) (26) (17) (50)
At 30 September 2014² 175 682 357 1,214
At 1 October 2014 175 682 357 1,214
Charge for the year 21 118 54 193
Disposals (18) (92) (35) (145)
Business disposals - other activities - (1) - (1)
Reclassified - 4 - 4
Currency adjustment (1) (7) (17) (25)
At 30 September 2015 177 704 359 1,240
NET BOOK VALUE 
At 30 September 2014² 181 356 187 724
At 30 September 2015 162 396 206 764
The net book amount of the Group's property, plant and equipment includes assets held under finance leases as follows:
Land and Plant and Fixtures and 
PROPERTY, PLANT AND EQUIPMENT HELD UNDER FINANCE LEASES buildings machinery fittings Total
m m m m
At 30 September 2014 7 6 1 14
At 30 September 2015 6 6 1 13
1 Includes leased assets at a net book value of 2 million (2014: 2 million). 
2 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
12 EQUITY ACCOUNTED INVESTMENTS 
Significant interests in associates are: 
2015 2014 
Country of incorporation ownership¹ ownership¹ 
Twickenham Experience Ltd² England & Wales 16% 16% 
Oval Events Limited³ England & Wales 25% 25% 
AEG Facilities, LLC⁴ USA 49% 49% 
Thompson Hospitality Services LLC⁴ USA 49% 49% 
1 % ownership is of the ordinary share capital. 
2 Financial statements applied using the equity method relate to the year ended 30 June, rolled forward to 30 September. 2014 has been restated to correctly reflect ownership %. 
3 Financial statements applied using the equity method relate to the year ended 31 January, rolled forward to 30 September. 
4 Financial statements applied using the equity method relate to the year ended 31 December of the prior year, rolled forward to 30 September.
Significant interests in joint ventures are: 
2015 2014
Country of incorporation ownership¹ ownership¹
Quadrant Catering Ltd² England & Wales 49% 49%
ADNH-Compass Middle East LLC United Arab Emirates 50% 50%
Express Support Services Limitada^2,3 Angola 49% 49%
1 % ownership is of the ordinary share capital.
2 49% ownership entitles Compass Group to 50% of voting rights.
3 2014 has been restated to correctly reflect ownership %.
None of these investments is held directly by the ultimate Parent Company. All joint ventures provide food and/or support services in their respective countries of incorporation and make their accounts up to 30 September. All holdings are in the ordinary shares of the respective joint venture company.
These investments are structured through separate vehicles and the Group has a residual interest in their respective net assets. Accordingly the Group has classified its interests as joint ventures which are equity accounted. The tables below reconcile the summarised financial information to the carrying amount of the Group's interests in these joint ventures.
INTERESTS IN ASSOCIATES AND JOINT VENTURES 2015 2014 Restated¹
m m
NET BOOK VALUE 
Interests in associates 122 114
Interests in joint ventures 81 75
At 30 September 203 189
At 1 October 189 155
Additions 2 48
Disposals - (19)
Share of profits less losses (net of tax) 39 30
Dividends declared (33) (24)
Currency and other adjustments 6 (1)
At 30 September 203 189
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
12 EQUITY ACCOUNTED INVESTMENTS CONTINUED
The Group's share of revenues and profits is included below: 
ASSOCIATES AND JOINT VENTURES 2015 2014 Restated¹
m m
SHARE OF REVENUE AND PROFITS 
Revenue 310 250
Expenses/taxation² (271) (220)
Profit after tax for the year 39 30
Share of net assets 
Non-current assets 165 166
Current assets 157 190
Non-current liabilities (13) (18)
Current liabilities (106) (149)
Net assets 203 189
SHARE OF CONTINGENT LIABILITIES 
Contingent liabilities (22) (23)
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
2 Expenses include the relevant portion of income tax recorded by associates and joint ventures. 
13 OTHER INVESTMENTS 
2015 2014 
m m 
NET BOOK VALUE 
At 1 October 36 41 
Additions 1 2 
Disposals (1) (10) 
Currency and other adjustments 2 3 
At 30 September 38 36 
COMPRISED OF 
Other investments^{1, 3} 9 9 
Life insurance policies and mutual fund investments^{1 ,2 , 3} 29 27 
Total 38 36 
1 Categorised as 'available for sale' financial assets (IAS 39).
2 Life insurance policies used by overseas companies to meet the cost of unfunded post-employment benefit obligations as set out in note 22.
3 As per the fair value hierarchies explained in note 19, other investments are Level 1 and the life insurance policies are Level 2.
Compass Group PLC
Consolidated Financial Statements(continued)
14 TRADE AND OTHER RECEIVABLES 
2015 2014 Restated¹
TRADE AND OTHER RECEIVABLES Current Non-current Total Current Non-current Total
m m m m m m
NET BOOK VALUE 
At 1 October 2,069 70 2,139 2,013 86 2,099
Net movement 142 2 144 153 (12) 141
Currency adjustment (96) (1) (97) (97) (4) (101)
At 30 September 2,115 71 2,186 2,069 70 2,139
COMPRISED OF 
Trade receivables 1,627 - 1,627 1,762 - 1,762
Less: Provision for impairment of trade receivables (57) - (57) (75) - (75)
Net trade receivables² 1,570 - 1,570 1,687 - 1,687
Other receivables 254 80 334 82 78 160
Less: Provision for impairment of other receivables (9) (15) (24) (11) (16) (27)
Net other receivables 245 65 310 71 62 133
Accrued income 177 - 177 189 - 189
Prepayments 117 6 123 122 8 130
Amounts owed by associates, joint ventures and related parties² 6 - 6 - - -
Trade and other receivables 2,115 71 2,186 2,069 70 2,139
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 Categorised as 'loans and receivables' financial assets (IAS 39).
TRADE RECEIVABLES 
The book value of trade and other receivables approximates to their fair value due to the short term nature of the majority of the receivables.
Credit sales are only made after credit approval procedures have been completed satisfactorily. The policy for making provisions for bad and doubtful debts varies from country to country as different countries and markets have different payment practices, but various factors are considered, including how overdue the debt is, the type of receivable and its past history, and current market and trading conditions. Full provision is made for debts that are not considered to be recoverable.
There is limited concentration of credit risk with respect to trade receivables due to the diverse and unrelated nature of the Group's client base. Accordingly, the directors believe that there is no further credit provision required in excess of the provision for the impairment of receivables. The book value of trade and other receivables represents the Group's maximum exposure to credit risk.
Trade receivable days for the continuing business at 30 September 2015 were 41 days (2014: 41 days).
Compass Group PLC
Consolidated Financial Statements(continued)
14 TRADE AND OTHER RECEIVABLES CONTINUED
The ageing of gross trade receivables and of the provision for impairment is as follows:
2015
Not 0-3 3-6 6-12 Over 12 
yet months months months months 
TRADE RECEIVABLES due overdue overdue overdue overdue Total
m m m m m m
Gross trade receivables 1,294 260 29 12 32 1,627
Less: Provision for impairment of trade receivables (2) (9) (9) (10) (27) (57)
Net trade receivables 1,292 251 20 2 5 1,570
2014 Restated¹
Not 0-3 3-6 6-12 Over 12 
yet months months months months 
due overdue overdue overdue overdue Total
TRADE RECEIVABLES m m m m m m
Gross trade receivables 1,415 266 33 15 33 1,762
Less: Provision for impairment of trade receivables (4) (15) (18) (10) (28) (75)
Net trade receivables 1,411 251 15 5 5 1,687
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Movements in the provision for impairment of trade and other receivables are as follows:
2015 2014
PROVISION FOR IMPAIRMENT OF TRADE AND OTHER RECEIVABLES Trade Other Total Trade Other Total
m m m m m m
At 1 October 75 27 102 101 11 112
Charged to income statement 18 6 24 20 1 21
Credited to income statement (13) - (13) (27) (5) (32)
Utilised (21) (2) (23) (14) - (14)
Reclassified - - - (2) 21 19
Currency adjustment (2) (7) (9) (3) (1) (4)
At 30 September 57 24 81 75 27 102
At 30 September 2015, trade receivables of 278 million (2014: 276 million) were past due but not impaired. The Group has made a provision based on a number of factors, including past history of the debtor, and all amounts not provided for are considered to be recoverable.
Compass Group PLC
Consolidated Financial Statements(continued)
15 IFRS 11 RESTATEMENT 
Comparative financial information for the year ended 30 September 2014 has been restated for the effects of IFRS 11. The following principal joint arrangements, previously accounted for as jointly controlled entities under IAS 31 are now classified as joint ventures and are equity accounted under the requirements of the revised IAS 28:
- Quadrant Catering Limited 
- ADNH-Compass Middle East LLC 
- Express Support Services Limitada 
The impact of the restatements on the Group's consolidated income statement, statement of comprehensive income, balance sheet and cash flow statement is as shown below:
CONSOLIDATED INCOME STATEMENT For the year ended 30 September 2014
As published IFRS 11 Restated
m m m
CONTINUING OPERATIONS 
Revenue 17,058 (204) 16,854
Operating costs before goodwill impairment (15,850) 180 (15,670)
Operating profit 1,208 (24) 1,184
Share of profit of joint ventures - 21 21
Share of profit of associates 9 - 9
Total operating profit 1,217 (3) 1,214
Profit on disposal of US businesses 1 - 1
Profit on disposal of interest in associates 13 - 13
Finance income 5 - 5
Finance costs (91) - (91)
Change in the fair value of investments 2 - 2
Profit before tax 1,147 (3) 1,144
Income tax expense (279) 3 (276)
Profit for the year from continuing operations 868 - 868
DISCONTINUED OPERATIONS 
Profit for the year from discontinued operations 3 - 3
CONTINUING AND DISCONTINUED OPERATIONS 
Profit for the year 871 - 871
Compass Group PLC
Consolidated Financial Statements(continued)
15 IFRS 11 RESTATEMENT CONTINUED
CONSOLIDATED BALANCE SHEET 
As at 30 September 2014 
As published¹ IFRS11 Restated 
m m m 
NON-CURRENT ASSETS 
Goodwill 3,565 (37) 3,528 
Other intangible assets 1,010 - 1,010 
Property, plant and equipment 729 (5) 724 
Interests in joint ventures and associates 114 75 189 
Other investments 36 - 36 
Trade and other receivables 67 3 70 
Deferred tax assets* 246 - 246 
Derivative financial instruments** 50 - 50 
Non-current assets 5,817 36 5,853 
CURRENT ASSETS 
Inventories 270 (5) 265 
Trade and other receivables 2,128 (59) 2,069 
Tax recoverable* 32 - 32 
Cash and cash equivalents** 431 (23) 408 
Derivative financial instruments** 16 - 16 
Current assets 2,877 (87) 2,790 
Total assets 8,694 (51) 8,643 
CURRENT LIABILITIES 
Short term borrowings¹** (315) - (315) 
Derivative financial instruments** (4) - (4) 
Provisions (161) - (161) 
Current tax liabilities* (148) - (148) 
Trade and other payables¹ (3,121) 44 (3,077) 
Current liabilities (3,749) 44 (3,705) 
NON_CURRENT LIABILITIES 
Long term borrowings** (2,526) 1 (2,525) 
Derivative financial instruments** (1) - (1) 
Post-employment benefit obligations (176) 6 (170) 
Provisions (277) - (277) 
Deferred tax liabilities* (39) - (39) 
Trade and other payables (78) - (78) 
Non-current liabilities (3,097) 7 (3,090) 
Total liabilities (6,846) 51 (6,795) 
Net assets 1,848 - 1,848 
EQUITY 
Share capital 178 - 178 
Share premium account 174 - 174 
Capital redemption reserve 293 - 293 
Less: Own shares (1) - (1) 
Other reserves 4,277 4,277 
Retained earnings (3,082) - (3,082) 
Total equity shareholders' funds 1,839 - 1,839 
Non-controlling interests 9 - 9 
Total equity 1,848 - 1,848 
¹ 2014 has been restated to reflect a reclassification between other payables and short term borrowings.
* Component of current and deferred taxes. 
** Component of net debt. 
Compass Group PLC
Consolidated Financial Statements(continued)
15 IFRS 11 RESTATEMENT CONTINUED 
CONSOLIDATED CASH FLOW STATEMENT For the year ended 30 September 2014
As published IFRS11 Restated
m m m
CASH FLOW FROM OPERATING ACTIVITIES 
Cash generated from operations 1,442 (25) 1,417
Interest paid (77) - (77)
Tax received 24 - 24
Tax paid (268) 2 (266)
Net cash from operating activities 1,121 (23) 1,098
CASH FLOW FROM INVESTING ACTIVITIES 
Purchase of subsidiary companies and investments in associates ¹ (176) - (176)
Proceeds from sale of subsidiary companies and associates - discontinued activities¹ (1) - (1)
Proceeds from sale of subsidiary companies and associates - continuing activities¹ 66 - 66
Tax on profits from sale of subsidiary companies and associates (4) - (4)
Purchase of intangible assets (206) - (206)
Purchase of property, plant and equipment² (263) 2 (261)
Proceeds from sale of property, plant and equipment/intangible assets 22 - 22
Purchase of other investments (2) - (2)
Proceeds from sale of other investments 3 - 3
Dividends received from associates 7 - 7
Dividends received from joint ventures - 15 15
Interest received 6 - 6
Net cash used in investing activities (548) 17 (531)
CASH FLOW FROM FINANCING ACTIVITIES 
Proceeds from issue of ordinary share capital 5 - 5
Purchase of own shares³ (280) - (280)
Net increase in borrowings 597 - 597
Repayment of obligations under finance leases (5) - (5)
Return of cash to Compass shareholders (1,000) - (1,000)
Equity dividends paid (444) - (444)
Dividends paid to non-controlling interests (5) 2 (3)
Net cash used in financing activities (1,132) 2 (1,130)
CASH AND CASH EQUIVALENTS 
Net decrease in cash and cash equivalents (559) (4) (563)
Cash and cash equivalents at beginning of the year 1,006 (19) 987
Currency translation losses on cash and cash equivalents (16) - (16)
Cash and cash equivalents at end of the period 431 (23) 408
¹ Net of cash acquired or disposed and payments received or made under warranties and indemnities. 
² Includes property, plant and equipment purchased under client commitments. 
³ Includes stamp duty and brokers' commission. 
Compass Group PLC
Consolidated Financial Statements(continued)
16 INVENTORIES 
INVENTORIES 2015 2014 Restated¹
m m
NET BOOK VALUE 
At 1 October 265 250
Business acquisitions 3 -
Net movement 17 25
Currency adjustment (3) (10)
At 30 September 282 265
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
17 CASH AND CASH EQUIVALENTS 
CASH AND CASH EQUIVALENTS 2015 2014 Restated¹
m m
Cash at bank and in hand 224 252
Short term bank deposits 59 156
Cash and cash equivalents² 283 408
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
2 Categorised as 'loans and receivables' financial assets (IAS 39). 
CASH AND CASH EQUIVALENTS BY CURRENCY 2015 2014 Restated¹
m m
Sterling 72 132
US Dollar 33 76
Euro 44 39
Japanese Yen 14 12
Other 120 149
Cash and cash equivalents 283 408
The Group's policy to manage the credit risk associated with cash and cash equivalents is set out in note 19. The book value of cash and cash equivalents represents the maximum credit exposure.
MASTER NETTING OR SIMILAR AGREEMENTS 
The Group has master netting agreements for its cash and bank overdrafts and the following balances are offset within the consolidated balance sheet:
2015
Gross Offset Net
m m m
Cash and cash equivalents 328 (45) 283
Bank overdrafts (104) 45 (59)
2014 Restated¹
Gross Offset Net
m m m
Cash and cash equivalents 579 (171) 408
Bank overdrafts (208) 171 (37)
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
Compass Group PLC
Consolidated Financial Statements(continued)
18 SHORT TERM AND LONG TERM BORROWINGS 
2015 2014 Restated^1,2 
SHORT TERM AND LONG TERM BORROWINGS Current Non-current Total Current Non-current Total 
m m m m m m 
Bank overdrafts 59 - 59 37 - 37 
Bank loans 78 251 329 22 301 323 
Loan notes 107 1,330 1,437 - 1,076 1,076 
Bonds - 1,093 1,093 251 1,136 1387 
Borrowings (excluding finance leases) 244 2,674 2,918 310 2,513 2,823 
Finance leases 3 10 13 5 12 17 
Borrowings (including finance leases)³ 247 2,684 2,931 315 2,525 2,840 
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
2 2014 has been restated to reflect a reclassification between other payables and short term borrowings. 
3 Categorised as 'other financial liabilities' (IAS 39). 
Bank overdrafts principally arise as a result of uncleared transactions. Interest on bank overdrafts is at the relevant money market rates.
All amounts due under bonds, loan notes and bank facilities are shown net of unamortised issue costs. Additionally, the Group adjusts the carrying values of the bonds and loan notes that are designated in effective fair value hedge relationships, for fair value gains and losses (based on observable market inputs) attributable to the risk being hedged. 
The Group has fixed term, fixed interest private placements denominated in US dollar and sterling. The $100 million 2024 and $300 million 2026 US dollar private placements were issued during the year.
2015 2014
Carrying value Carrying value
LOAN NOTES Nominal value Redeemable Interest m m
US$ private placement $162m Oct 2015 6.72% 107 102
Sterling private placement 35m Oct 2016 7.55% 36 36
US$ private placement $250m Oct 2018 3.31% 170 157
US$ private placement $200m Sep 2020 3.09% 132 123
US$ private placement $398m Oct 2021 3.98% 262 245
US$ private placement $352m Oct 2023 4.12% 250 223
US$ private placement $100m Dec 2024 3.54% 66 -
US$ private placement $300m Sep 2025 3.81% 216 190
US$ private placement $300m Dec 2026 3.64% 198 -
1,437 1,076
2015 2014
BONDS Carrying value Carrying value
Nominal value Redeemable Interest m m
Sterling Eurobond 250m Dec 2014 7.00% - 251
Euro Eurobond 600m Feb 2019 3.13% 458 485
Euro Eurobond 500m Jan 2023 1.88% 386 402
Sterling Eurobond 250m Jun 2026 3.85% 249 249
1,093 1,387
Compass Group PLC
Consolidated Financial Statements(continued)
18 SHORT TERM AND LONG TERM BORROWINGS CONTINUED
The maturity profile of borrowings (excluding finance leases) is as follows:
MATURITY PROFILE OF BORROWINGS (EXCLUDING FINANCE LEASES) 2015 2014 Restated¹
m m
Within 1 year, or on demand 244 310
Between 1 and 2 years 287 153
Between 2 and 3 years - 286
Between 3 and 4 years 628 -
Between 4 and 5 years 132 642
In more than 5 years 1,627 1,432
Borrowings (excluding finance leases) 2,918 2,823
The fair value of the Group's borrowings is calculated by discounting future cash flows to net present values at current market rates for similar financial instruments. The fair values have been determined by reference to Level 2 inputs as defined by the fair value hierarchy of IFRS 13 'Fair value measurements'. The table below shows the fair value of borrowings excluding accrued interest:
2015 2014 Restated¹
CARRYING VALUE AND FAIR VALUE OF BORROWINGS (EXCLUDING FINANCE LEASES) Carrying value Fair value Carrying value Fair value
m m m m 
Bank overdrafts 59 59 37 37
Bank loans 329 329 323 323
Loan notes 1,437 1,456 1,076 1,095
250m Eurobond Dec 2014 - - 251 253
600m Eurobond Feb 2019 458 478 485 517
500m Eurobond Jan 2023 386 379 402 403
250m Eurobond Jun 2026 249 269 249 259
Bonds 1,093 1,126 1,387 1,432
Borrowings (excluding finance leases) 2,918 2,970 2,823 2,887
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2015 2014
Present Present
GROSS AND PRESENT VALUE OF FINANCE LEASE LIABILITIES Gross value Gross value
m m m m
Finance lease payments falling due: 
Within 1 year 4 3 5 5
In 2 to 5 years 7 7 9 8
In more than 5 years 3 3 5 4
14 13 19 17
Less: Future finance charges (1) - (2) -
Gross and present value of finance lease liabilities 13 13 17 17
Compass Group PLC
Consolidated Financial Statements(continued)
18 SHORT TERM AND LONG TERM BORROWINGS CONTINUED
2015 2014 Restated¹
Finance Finance 
Borrowings leases Total Borrowings leases Total
BORROWINGS BY CURRENCY m m m m m m
Sterling 584 - 584 835 - 835
US Dollar 1,441 - 1,441 1,040 1 1,041
Euro 853 11 864 904 13 917
Other 40 2 42 44 3 47
Total 2,918 13 2,931 2,823 17 2,840
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
The Group had the following undrawn committed facilities available at 30 September, in respect of which all conditions precedent had then been met:
Undrawn committed facilities 2015 2014
m m
Expiring between 1 and 5 years 1,000 1,000
19 DERIVATIVE FINANCIAL INSTRUMENTS
CAPITAL RISK MANAGEMENT
The Group manages its capital structure to ensure that it will be able to continue as a going concern. The capital structure of the Group consists of cash and cash equivalents as disclosed in note 17; debt, which includes the borrowings disclosed in note 18; and equity attributable to equity shareholders of the Parent, comprising issued share capital, reserves and retained earnings as disclosed in the consolidated statement of changes in equity.
FINANCIAL MANAGEMENT
The Group continues to manage its interest rate and foreign currency exposure in accordance with the policies set out below. The Group's financial instruments comprise cash, borrowings, receivables and payables that are used to finance the Group's operations. The Group also uses derivatives, principally interest rate swaps, forward currency contracts and cross currency swaps, to manage interest rate and currency risks arising from the Group's operations. The Group does not trade in financial instruments. The Group's treasury policies are designed to mitigate the impact of fluctuations in interest rates and exchange rates and to manage the Group's financial risks. The Board approves any changes to the policies.
LIQUIDITY RISK
The Group finances its borrowings from a number of sources including the bank, the public and the private placement markets. The Group has developed long term relationships with a number of financial counterparties with the balance sheet strength and credit quality to provide credit facilities as required. The Group seeks to avoid a concentration of debt maturities in any one period to spread its refinancing risk.
2015 2014 
Current Non-current Current Non-current Current Non-current Current Non-current 
DERIVATIVE FINANCIAL INSTRUMENTS assets assets liabilities liabilities assets assets liabilities liabilities 
m m m m m m m m 
Interest rate swaps: 
Fair value hedges¹ 2 58 - - 11 34 - - 
Not in a hedging relationship² - - (2) (2) - - (1) - 
Other derivatives: 
Forward currency contracts and cross currency swaps 17 - (5) (23) 4 16 (3) (1) 
Others - - - - 1 - - - 
Total 19 58 (7) (25) 16 50 (4) (1) 
1 Derivatives that are designated and effective as hedging instruments carried at fair value (IAS 39). 
2 Derivatives carried at 'fair value through profit or loss' (IAS 39). 
Compass Group PLC
Consolidated Financial Statements(continued)
19 DERIVATIVE FINANCIAL INSTRUMENTS CONTINUED
2015 2014
NOTIONAL AMOUNT OF DERIVATIVE FINANCIAL INSTRUMENTS BY CURRENCY
Fair value Cash flow Fair value Cash flow
swaps swaps swaps swaps
m m m m
Sterling 20 - 220 -
US Dollar 658 390 615 472
Euro 700 22 741 27
Japanese Yen - 73 - 75
Other - 236 - 248
Total 1,378 721 1,576 822
2015 2014^1,2
Forward Effective Forward Effective
EFFECTIVE CURRENCY DENOMINATION OF BORROWINGS AFTER THE EFFECT OF DERIVATIVES Gross currency currency of Gross currency currency of 
borrowings contracts³ borrowings borrowings contracts³ borrowings
m m m m m m
Sterling 584 (293) 291 835 (600) 235
US Dollar 1,441 406 1,847 1,041 623 1,664
Euro 864 (578) 286 917 (624) 293
Japanese Yen - 125 125 - 128 128
Other 42 389 431 47 482 529
Total 2,931 49 2,980 2,840 9 2,849
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15. 
2 2014 has been restated to reflect a reclassification between other payables and short term borrowings.
3 Includes cross currency contracts. 
Compass Group PLC
Consolidated Financial Statements(continued)
20 TRADE AND OTHER PAYABLES 
2015 2014 Restated^1,2
TRADE AND OTHER PAYABLES Current Non-current Total Current Non-current Total
m m m m m m
NET BOOK VALUE 
At 1 October 3,077 78 3,155 3,010 75 3,085
Net movement 149 12 161 204 6 210
Reclassification 1 (2) (1) (18) - (18)
Currency adjustment (70) (4) (74) (119) (3) (122)
At 30 September 3,157 84 3,241 3,077 78 3,155
COMPRISED OF 
Trade payables³ 1,400 - 1,400 1,333 - 1,333
Social security and other taxes 273 - 273 279 - 279
Other payables² 155 28 183 164 23 187
Deferred consideration on acquisitions³ 16 28 44 13 21 34
Accruals⁴ 1,027 28 1,055 1,025 34 1,059
Deferred income 286 - 286 257 - 257
Amounts owed to associates, joint ventures and related parties⁵ - - - 6 - 6
Trade and other payables 3,157 84 3,241 3,077 78 3,155
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 2014 has been restated to reflect a reclassification between other payables and short term borrowings.
3 Categorised as 'other financial liabilities' (IAS 39).
4 Of this balance 415 million (2014: 436 million) is categorised as 'other financial liabilities' (IAS 39). 
5 Categorised as 'loans and receivables' financial assets (IAS 39). 
The Directors consider that the carrying amount of trade and other payables approximates to their fair value. The current trade and other payables are payable on demand.

Trade payable days for the continuing business at 30 September 2015 were 72 days (2014: 72 days).
Compass Group PLC
Consolidated Financial Statements(continued)
21 PROVISIONS 
Provisions in 
respect of 
discontinued 
and disposed Onerous Legal and 
PROVISIONS Insurance businesses Contracts other claims Reorganisation Other Total 
m m m m m m m 
At 1 October 2013 228 47 56 91 67 42 531 
Reclassified ¹ (3) - (12) (20) - 14 (21) 
Expenditure in the year (2) (1) (19) (9) (34) (24) (89) 
Charged to income statement 9 - 9 8 11 2 39 
Credited to income statement - - (7) (2) (3) (2) (14) 
Business acquisitions - - 1 - - 1 2 
Business Disposals - - - - (3) - (3) 
Unwinding of discount on provisions - - 3 - - - 3 
Currency adjustment - - (2) (4) (2) (2) (10) 
At 30 September 2014 232 46 29 64 36 31 438 
At 1 October 2014 232 46 29 64 36 31 438 
Reclassified¹ - - (1) 1 (1) - (1) 
Expenditure in the year (5) (1) (11) (15) (20) (6) (58) 
Charged to income statement 9 - 9 17 7 2 44 
Credited to income statement (12) - (6) (16) (4) (4) (42) 
Business disposals - - - - (2) - (2) 
Unwinding of discount on provisions 5 - 1 - - - 6 
Currency adjustment 13 - (1) (7) (2) (1) 2 
At 30 September 2015 242 45 20 44 14 22 387 
1 Including items reclassified between accrued liabilities and other balance sheet captions. 
PROVISIONS 2015 2014
m m
Current 136 161
Non-current 251 277
Total provisions 387 438
The provision for insurance relates to the potential settlements in respect of claims under self-funded insurance schemes, primarily workers' compensation schemes in the US, and is essentially long term in nature.

Provisions in respect of discontinued and disposed of businesses relate to estimated amounts payable in connection with onerous contracts and claims arising from disposals. The final amount payable remains uncertain as, at the date of approval of these financial statements, there remains a further period during which claims may be received. The timing of any settlement will depend upon the nature and extent of claims received.

Provisions for onerous contracts represent the liabilities in respect of short term and long term leases on unoccupied properties and other contracts lasting under five years.

Provisions for legal and other claims relate principally to provisions for the estimated cost of litigation and other sundry claims. The timing of the settlement of these claims is uncertain.

Provisions for re organisation include provision for redundancy costs and these are expected to be utilised over the next year. 

Other provisions include environmental provisions. These are in respect of potential liabilities relating to the Group's responsibility for maintaining its operating sites in accordance with statutory requirements and the Group's aim to have a low impact on the environment. These provisions are expected to be utilised as operating sites are disposed of or as environmental matters are resolved.


Provisions are discounted to present value where the effect is material using the Group's weighted average cost of capital.
Compass Group PLC
Consolidated Financial Statements(continued)
22 POST EMPLOYMENT BENEFIT OBLIGATIONS 
PENSION SCHEMES OPERATED 
The Group operates a number of pension arrangements throughout the world which have been developed in accordance with statutory requirements and local customs and practices. The majority of schemes are self-administered and the schemes' assets are held independently of the Group's assets. Pension costs are assessed in accordance with the advice of independent, professionally qualified actuaries. The Group makes employer contributions to the various schemes in existence within the range of 1% to 39% of pensionable salaries.

The contributions payable for defined contribution schemes of 84 million (2014: 85 million) have been fully expensed against profits in the current year.
Disclosures showing the assets and liabilities of the schemes are set out below. These have been calculated on the following assumptions:
UK schemes USA schemes Other schemes
2015 2014 2015 2014 2015 2014
Discount rate 3.8% 4.0% 3.9% 3.9% 2.2% 2.5%
Inflation 3.1% 3.2% 2.1% 2.3% 1.4% 1.7%
CPI inflation 2.35% 2.45% n/a n/a n/a n/a
Rate of increase in salaries 3.1% 3.2% 3.0% 3.0% 1.7% 1.7%
Rate of increase for pensions in payment 3.0% 3.1% 2.1% 2.3% 0.2% 0.3%
Rate of increase for deferred pensions * 2.7% 2.8% 0.0% 0.0% 0.0% 0.0%
* This assumption is now presented as a weighted average. 
The mortality assumptions used to value the UK pension schemes are derived from the S1NA generational mortality tables with improvements in line with the projection model prepared by the Continuous Mortality Investigation of the UK actuarial profession, with no rating for males and +0.6 year age adjustment for females, with a long-term underpin of 1.25%. These mortality assumptions take account of experience to date, and assumptions for further improvements in the life expectancy of scheme members. The Group estimates the average duration of the UK Plan's liabilities to be 18 years (2014: 18 years).
Examples of the resulting life expectancies are as follows:
2015 2014
LIFE EXPECTANCY AT AGE 65 Male Female Male Female
Member aged 65 in 2015 (2014) 22.6 24.5 22.5 24.4
Member aged 65 in 2040 (2039) 24.8 27.0 24.8 26.9
The other demographic assumptions have been set having regard to the latest trends in scheme experience and other relevant data. The assumptions are reviewed and updated as necessary as part of the periodic actuarial valuation of pension schemes.
For the overseas schemes, regionally appropriate assumptions have been used where recommended by local actuaries. The mortality assumptions used to value USA schemes are derived from the RP2014 combined healthy table, generational MP2014 scale. Examples of the resulting life expectancies are as follows:
2015 2014
LIFE EXPECTANCY AT AGE 65 Male Female Male Female
Member aged 65 in 2015 (2014) 21.7 23.9 20.9 23.3
Member aged 65 in 2040 (2039) 23.8 26.0 22.9 25.5
Compass Group PLC
Consolidated Financial Statements(continued)
22 POST-EMPLOYMENT OBLIGATIONS CONTINUED
MOVEMENTS IN THE FAIR VALUE OF PLAN ASSETS 2015 2014
UK USA Other Total UK USA Other Total
m m m m m m m m
At 1 October 1,944 279 84 2,307 1,772 250 127 2,149
Currency adjustment - 20 (1) 19 - - (6) (6)
Interest income on plan assets 76 11 2 89 78 10 3 91
Return on plan assets, excluding interest income 155 (14) 4 145 122 14 1 137
Employee contributions - 18 2 20 - 15 2 17
Employer contributions 30 32 12 74 30 15 15 60
Benefits paid (68) (29) (11) (108) (58) (24) (14) (96)
Administration expenses paid from plan assets - (2) - (2) - (1) - (1)
Disposals and plan settlements - (15) (7) (22) - - (44) (44)
At 30 September 2,137 300 85 2,522 1,944 279 84 2,307
MOVEMENT IN THE PRESENT VALUE OF DEFINED BENEFIT OBLIGATIONS 2015 2014 Restated¹
UK USA Other Total UK USA Other Total
m m m m m m m m
At 1 October 1,920 390 167 2,477 1,790 352 210 2,352
Currency adjustment (1) 27 (6) 20 - - (14) (14)
Current service cost 2 8 6 16 2 7 7 16
Past service cost - - - - - 1 (5) (4)
Interest expense on benefit obligations 75 15 4 94 78 14 6 98
Remeasurements - demographic assumptions - 3 2 5 12 9 2 23
Remeasurements - financial assumptions 38 (11) 3 30 96 15 10 121
Remeasurements - experience - - 2 2 - 1 1 2
Employee contributions - 18 2 20 - 15 2 17
Benefits paid (68) (29) (11) (108) (58) (24) (13) (95)
Disposals and plan settlements - (17) (8) (25) - - (40) (40)
Acquisitions - - - - - - 1 1
At 30 September 1,966 404 161 2,531 1,920 390 167 2,477
PRESENT VALUE OF DEFINED BENEFIT OBLIGATIONS 2015 2014 Restated¹
UK USA Other Total UK USA Other Total
m m m m m m m m
Funded obligations 1,924 310 105 2,339 1,878 301 107  2,286 
Unfunded obligations 42 94 56 192 42 89 60 191
Total obligations 1,966 404 161 2,531 1,920 390 167 2,477
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
22 POST-EMPLOYMENT BENEFIT OBLIGATIONS CONTINUED 2015
POST-EMPLOYMENT BENEFIT OBLIGATIONS RECOGNISED IN THE BALANCE SHEET UK USA Other Total
m m m m
Present value of defined benefit obligations 1,966 404 161 2,531
Fair value of plan assets (2,137) (300) (85) (2,522)
Post-employment benefit obligations recognised in the balance sheet (171) 104 76 9
2014 Restated¹
POST-EMPLOYMENT BENEFIT OBLIGATIONS RECOGNISED IN THE BALANCE SHEET UK USA Other Total
m m m m
Present value of defined benefit obligations 1,920 390 167 2,477
Fair value of plan assets (1,944) (279) (84) (2,307)
Post-employment benefit obligations recognised in the balance sheet (24) 111 83 170
Certain Group companies have taken out life insurance policies and invested in mutual funds which will be used to meet unfunded pension obligations. The current value of these policies and other assets, 29 million (2014: 27 million), may not be offset against pension obligations under IAS 19 and is reported within note 13. 2014 Restated¹
AMOUNTS RECOGNISED THROUGH THE INCOME STATEMENT 
The amounts recognised through the consolidated income statement within the various captions are as follows
2015 2014 Restated¹
UK USA Other Total UK USA Other Total
m m m m m m m m
Current service cost 2 8 6 16 2 7 7 16
Past service cost - - - - - 1 (5) (4)
Charged to operating expenses 2 8 6 16 2 8 2 12
Interest expense on benefit obligations 75 15 4 94 78 14 6 98
Interest income on plan assets (76) (11) (2) (89) (78) (10) (3) (91)
Charged to finance costs (1) 4 2 5 - 4 3 7
Total charged in the consolidated income statement 1 12 8 21 2 12 5 19
The Group made total contributions to defined benefit schemes of 74 million in the year (2014: 60 million), including exceptional advance payments of nil (2014: nil) and expects to make total contributions, including UK deficit contributions, to these schemes of 55 million in 2016.
AMOUNTS RECOGNISED THROUGH THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
The amounts recognised through the consolidated statement of comprehensive income are as follows:
2015 2014 Restated¹
m m
Remeasurement of post-employment benefit obligations 
 - Effect of changes in demographic assumptions (5) (23)
 - Effect of changes in financial assumptions (30) (121)
 - Effect of experience adjustments (2) (2)
Remeasurement of post-employment benefit obligations - loss (37) (146)
Return on plan assets, excluding interest income - gain 145 137
Total recognised in the consolidated statement of comprehensive income 108 (9)
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
23 SHARE CAPITAL
During the year no options were granted under The Compass Group Share Option Plan 2010. 
During the year the Company purchased 30,086,546 equity ordinary shares in accordance with its share buyback programme (2014: 21,752,881). Of these 9,552,807 were held as Treasury shares. 225 million was paid to acquire shares that were subsequently cancelled and 103 million was paid to acquire shares that are held as Treasury shares. The total amount paid to acquire all the shares was 328 million which has been deducted from shareholders' equity (2014: 200 million). 
756,579 Treasury shares were released in 2015 (2014: nil), leaving a balance held at 30 September 2015 of 8,796,228 (2014: nil). Proceeds received from the reissuance of Treasury shares to exercise share options were 1 million (2014: nil).
On 14 May 2014, Compass Group PLC announced a Return of Cash to shareholders of approximately 1 billion by way of a special dividend. The Return of Cash was accompanied by a consolidation of the existing ordinary shares in the ratio of 16 New Ordinary shares for every 17 existing ordinary shares held. Following approval of the Return of Cash to Shareholders on 11 June 2014, 1,366,745,487 C shares of 0.0001 pence each and 419,413,879 B shares of 56 pence each were issued on 8 July 2014 following partial capitalisation of the share premium account. On 15 July a dividend of 56 pence per share was declared on the C shares at a cost of 765 million payable on 29 July 2014 and these shares were reclassified as deferred shares. On the same day the B shares were redeemed for 56 pence per share at a cost of 235 million, payable on 29 July 2014. The deferred shares were redeemed on 15 July. Following redemption, the B shares and deferred shares were cancelled. Costs in relation to the Return of Cash were 2 million.
The on market share buyback programme was resumed on 31 July 2014. During the period to 30 September 2014 a total of 8,000,000 ordinary shares of 10 5/8 pence each were repurchased for consideration of 78 million and cancelled. The Company also contracted to repurchase a further 200,000 ordinary shares of 10 5/8 pence each before 30 September 2014 for consideration of 1.9 million which was settled in October 2014.
2015 2014
ALLOTTED SHARE CAPITAL Number of shares m Number of shares m
Allotted and fully paid: 
New Ordinary shares of 10 5/8p each 1,656,777,382 176 1,673,886,784 178
1,656,777,382 176 1,673,886,784 178
At 1 October 178 180
Ordinary and New Ordinary shares allotted during the year - 1
Repurchase of Ordinary and New Ordinary shares (2) (3)
At 30 September 176 178
 24 SHARE-BASED PAYMENTS
SHARE OPTIONS
Full details of The Compass Group Share Option Plan 2010 (CSOP 2010), the Compass Group Share Option Plan (CSOP 2000), the Compass Group Management Share Option Plan (Management Plan) (collectively the Executive and Management Share Option Plans) and the UK Sharesave Plan are set out in prior years' Annual Reports which are available on the Company's website.
The consolidation of Compass Group PLC shares that took place during the prior year had no impact on the number of options outstanding under these plans or on the other terms and conditions that apply to them other than consideration by the Remuneration Committee of the impact on the performance targets that relate to these awards. 
 25 BUSINESS COMBINATIONS
The Group has completed a number of smaller infill acquisitions in several countries for total consideration of 93 million, of which 76 million was paid in the year. In addition, the Group paid a further 13 million deferred consideration relating to prior years.
Acquisition transaction costs expensed in the year to 30 September 2015 were 2 million (2014: 3 million). 
In the period from acquisition to 30 September 2015 the acquisitions contributed revenue of 42 million and operating profit of 
6 million to the Group's results.

If the acquisitions had occurred on 1 October 2014, it is estimated that Group revenue for the period would have been 
17,884 million and total Group operating profit (including associates) would have been 1,264 million.
Compass Group PLC
Consolidated Financial Statements(continued)
26 RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED BY OPERATIONS 
RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED BY CONTINUING OPERATIONS 2015 2014 Restated¹
m m 
Operating profit from continuing operations 1,222 1,184
Adjustments for: 
Acquisition transaction costs 2 3
Amortisation of intangible assets 147 128
Amortisation of intangible assets arising on acquisition 26 25
Depreciation of property, plant and equipment 193 189
Loss/(profit) on disposal of property, plant and equipment/intangible assets 3 (1)
Decrease in provisions (56) (64)
Decrease in post-employment benefit obligations (59) (46)
Share-based payments - charged to profits 15 13
Operating cash flows before movement in working capital 1,493 1,431
Increase in inventories (17) (17)
Increase in receivables (128) (152)
Increase in payables 128 155
Cash generated by continuing operations 1,476 1,417
1 2014 has been restated for the change in the accounting treatment for joint ventures in accordance with IFRS11, as detailed in note 15.
Compass Group PLC
Consolidated Financial Statements(continued)
27 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
This table is presented as additional information to show movement in net debt, defined as overdrafts, bank and other borrowings, finance leases and derivative financial instruments, net of cash and cash equivalents.
Gross debt 
Total Derivative Total 
Cash and cash Bank Bank and other overdrafts and Finance financial gross Net
NET DEBT equivalents overdrafts borrowings borrowings leases instruments debt debt
m m m m m m m m
At 1 October 2013 987 (20) (2,223) (2,243) (21) 66 (2,198) (1,211)
Net decrease in cash and cash equivalents (563) - - - - - - (563)
Cash inflow from issue of bonds - (646) (646) - - (646) (646)
Cash outflow from repayment of loan notes - - 74 74 - - 74 74
Cash inflow from other changes in gross debt - (18) (3) (21) - (4) (25) (25)
Cash outflow from repayment of obligations under finance leases - - - - 5 - 5 5
Increase in net debt as a result of new finance leases taken out - - - (2) - (2) (2)
Currency translation (losses)/gains (16) 1 51 52 1 (24) 29 13
Reclassification¹ - - (18) (18) - - (18) (18)
Other non-cash movements - - (21) (21) - 23 2 2
At 30 September 2014^1,2 408 (37) (2,786) (2,823) (17) 61 (2,779) (2,371)
At 1 October 2014 408 (37) (2,786) (2,823) (17) 61 (2,779) (2,371)
Net decrease in cash and cash equivalents (103) - - - - - - (103)
Cash inflow from issue of loan notes - - (259) (259) - - (259) (259)
Cash outflow from repayment of bonds - - 250 250 - - 250 250
Cash inflow from other changes in gross debt - (21) (15) (36) - (39) (75) (75)
Cash outflow from repayment of obligations under finance leases - - - - 5 - 5 5
Increase in net debt as a result of new finance leases taken out - - - - (2) - (2) (2)
Currency translation (losses)/gains (22) (1) (22) (23) 1 (2) (24) (46)
Other non-cash movements - - (27) (27) - 25 (2) (2)
At 30 September 2015 283 (59) (2,859) (2,918) (13) 45 (2,886) (2,603)
1 2014 has been restated to reflect a reclassification between other payables and short term borrowings.
2 2014 has been restated for the change in the accounting treatment for joint ventures in accordance with IFRS11, as detailed in note 15.
Other non-cash movements are comprised as follows:
OTHER NON-CASH MOVEMENTS IN NET DEBT 2015 2014
m m
Amortisation of fees and discount on issuance (1) (2)
Amortisation of the fair value adjustment in respect of the 250 million Sterling Eurobond redeemable in 2014 - 4
Changes in the fair value of bank and other borrowings in a designated fair value hedge (26) (23)
Bank and other borrowings (27) (21)
Changes in the value of derivative financial instruments including accrued income 25 23
Other non-cash movements (2) 2
Compass Group PLC
Consolidated Financial Statements(continued)
28 CONTINGENT LIABILITIES 
PERFORMANCE BONDS, GUARANTEES AND INDEMNITIES 2015 2014
m m
Performance bonds, guarantees and indemnities (including those of associated undertakings) ¹ 349 392
1 Excludes bonds, guarantees and indemnities in respect of self-insurance liabilities, post-employment obligations and borrowings (including finance and operating leases) recorded on the balance sheet or disclosed in note 30.
PERFORMANCE BONDS, GUARANTEES AND INDEMNITITES 
The Company and certain subsidiary undertakings have, in the normal course of business, given guarantees and entered into counter-indemnities in respect of such guarantees relating to the Group's own contracts and/or the Group's share of certain contractual obligations of joint ventures and associates. Where the Group enters into such arrangements, it does so in order to provide assurance to the beneficiary that it will fulfil its existing contractual obligations. The issue of such guarantees and indemnities does not therefore increase the Group's overall exposure and the disclosure of such performance bonds, guarantees and indemnities is given for information purposes only.
EUREST SUPPORT SERVICE
On 21 October 2005, the Company announced that it had instructed Freshfields Bruckhaus Deringer to conduct an investigation into the relationships between Eurest Support Services (ESS) (a member of the Group), IHC Services Inc. (IHC) and the United Nations (UN). Ernst & Young assisted Freshfields Bruckhaus Deringer in this investigation. On 1 February 2006, it was announced that the investigation had concluded.

The investigation established serious irregularities in connection with contracts awarded to ESS by the UN. The work undertaken by Freshfields Bruckhaus Deringer and Ernst & Young gave no reason to believe that these issues extended beyond a few individuals within ESS to other parts of ESS or the wider Compass Group of companies.

The Group settled all outstanding civil litigation against it in relation to this matter in October 2006, but litigation continues between competitors of ESS, IHC and other parties involved in UN procurement. 
IHC's relationship with the UN and ESS was part of a wider investigation into UN procurement activity being conducted by the United States Attorney's Office for the Southern District of New York, and with which the Group co-operated fully. The current status of that investigation is uncertain and a matter for the US authorities. Those investigators could have had access to sources unavailable to the Group, Freshfields Bruckhaus Deringer or Ernst & Young, and further information may yet emerge which is inconsistent with, or additional to, the findings of the Freshfields Bruckhaus Deringer investigation, which could have an adverse impact on the Group. The Group has, however, not been contacted by, or received further requests for information from, the United States Attorney's Office for the Southern District of New York in connection with these matters since January 2006. The Group has co-operated fully with the UN throughout. 
OTHER LITIGATION AND CLAIMS
The Group is also involved in various other legal proceedings incidental to the nature of its business and maintains insurance cover to reduce financial risk associated with claims related to these proceedings. Where appropriate, provisions are made to cover any potential uninsured losses. 
In addition, the Group is subject to periodic tax audits and challenges with/by various fiscal authorities covering corporate, employee and sales taxes in the various jurisdictions in which it operates. None of these are currently expected to have a material impact on the Group's financial position. 
OUTCOME
Although it is not possible to predict the outcome or quantify the financial effect of these proceedings, or any claim against the Group related thereto, in the opinion of the directors, any uninsured losses resulting from the ultimate resolution of these matters will not have a material effect on the financial position of the Group. The timing of the settlement of these proceedings or claims is uncertain.
29 CAPITAL COMMITMENTS 
CAPITAL COMMITMENTS 2015 2014 
m m 
Contracted for but not provided for 230 187 
The majority of capital commitments are for intangible assets. 
Compass Group PLC
Consolidated Financial Statements(continued)
30 OPERATING LEASE AND CONCESSIONS COMMITMENTS
The Group leases offices and other premises under non-cancellable operating leases. The leases have varying terms, purchase options, escalation clauses and renewal rights. The Group has some leases that include revenue-related rental payments that are contingent on future levels of revenue.

Future minimum rentals payable under non-cancellable operating leases and concessions agreements are as follows:
2015 2014
Operating leases Operating leases
Land and Other Other
occupancy Land and Other Other
occupancy
OPERATING LEASE AND CONCESSIONS COMMITMENTS buildings assets rentals buildings assets rentals
m m m m m m
Falling due within 1 year 51 52 51 53 46 55
Falling due between 2 and 5 years 136 75 84 141 63 74
Falling due in more than 5 years 72 9 55 76 6 53
Total 259 136 190 270 115 182
31 RELATED PARTY TRANSACTIONS
The following transactions were carried out with related parties of Compass Group PLC:
SUBSIDIARIES
Transactions between the Ultimate Parent Company and its subsidiaries, and between subsidiaries, have been eliminated on consolidation.
JOINT VENTURE
There were no significant transactions between joint ventures or joint venture partners and the rest of the Group during the year.
ASSOCIATES
The balances with associated undertakings are shown in notes 14 and 20. There were no significant transactions with associated undertakings during the year.
KEY MANAGEMENT PERSONNEL
The remuneration of Directors and key management personnel is set out in note 3 of the 2015 Annual Report. During the year there were no other material transactions or balances between the Group and its key management personnel or members of their close family.
32 POST BALANCE SHEET EVENTS
There are no material post balance sheet events.
Compass Group PLC
Consolidated Financial Statements(continued)
33 EXCHANGE RATES 
2015 2014
AVERAGE EXCHANGE RATE FOR YEAR ¹ 
Australian Dollar 1.98 1.81
Brazilian Real 4.66 3.80
Canadian Dollar 1.90 1.79
Euro 1.35 1.23
Japanese Yen 184.31 169.92
Norwegian Krone 11.82 10.12
South African Rand 18.60 17.54
Swedish Krona 12.58 11.00
Swiss Franc 1.48 1.49
Turkish Lira 3.96 3.53
UAE Dirham 5.69 6.09
US Dollar 1.55 1.66
CLOSING EXCHANGE RATE AS AT 30 SEPTEMBER ¹ 
Australian Dollar 2.16 1.85
Brazilian Real 6.03 3.97
Canadian Dollar 2.03 1.81
Euro 1.36 1.28
Japanese Yen 181.42 177.83
Norwegian Krone 12.92 10.41
South African Rand 20.94 18.32
Swedish Krona 12.70 11.69
Swiss Franc 1.48 1.55
Turkish Lira 4.59 3.70
UAE Dirham 5.56 5.95
US Dollar 1.51 1.62
1 Average rates are used to translate the income statement and cash flow statement. Closing rates are used to translate the balance sheet. Only the most significant currencies are shown.
Glossary of terms
Constant currency Restates the prior year results to current year's average exchange rates.
Underlying revenue The combined sales of Group and share of equity accounted joint ventures.
Underlying operating profit Includes share of profit after tax of associates and joint ventures but excludes specific adjusting items.
Underlying operating margin Based on underlying revenue and underlying operating profit excluding share of profit after tax of associates.
Underlying net finance cost Excludes hedge accounting ineffectiveness.
Underlying profit before tax Excludes specific adjusting items.
Underlying tax Excludes tax attributable to specific adjusting items.
Underlying effective tax rate Based on underlying tax charge and underlying profit before tax.
Underlying basic earnings per share Excludes specific adjusting items and the tax attributable to those items.
Underlying free cash flow Adjusted for cash restructuring costs in the year relating to the 2012 and 2013 European exceptional programme.
Underlying cash tax rate Based on underlying tax paid/received and underlying profit before tax.
Underlying gross capex Based on Group and share of equity accounted joint ventures capex spend and revenue.
Organic revenue growth Calculated by adjusting underlying revenue for acquisitions (excluding current year acquisitions and including a full year in respect of prior year acquisitions), disposals (excluded from both periods) and exchange rate movements (translating the prior year at current year exchange rates) and compares the current year results against the prior year.
Organic operating profit growth Calculated by adjusting underlying operating profit for acquisitions (excluding current year acquisitions and including a full year in respect of prior year acquisitions), disposals (excluded from both periods) and exchange rate movements (translating the prior year at current year exchange rates) and compares the current year results against the prior year.
Specific adjusting items - amortisation of intangibles arising on acquisition
- acquisition transaction costs
- adjustment to contingent consideration on acquisition
- tax on share of joint ventures
- (loss)/profit on disposal of US businesses
- hedge accounting ineffectiveness
EM & OR restructuring Emerging Markets & Offshore and Remote restructuring.
Emerging Markets Fast Growing & Emerging excluding Australia.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
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Investors	Sandra Moura	+44 1932 573 000
Media	Clare Hunt	+44 1932 573 116

Website	www.compass-group.com

	Underlying		Change
Regional financial summary	2015	2014	Reported	Constant currency	Organic

Revenue	9,361m	8,199m	14.2%	7.8%	7.9%
Operating profit	760m	666m	14.1%	7.6%	7.2%
Operating margin	8.1%	8.1%	-

	Underlying			Change
Regional financial summary (Before EM & OR restructuring costs)		2015	2014	Reported	Constant currency	Organic

Revenue	3,013m		3,143m	(4.1)%	6.1%	6.9%
Operating profit	218m		226m	(3.5)%	6.3%	6.8%
Operating margin	7.2%		7.2%	-

	2015	2014	Increase / (Decrease)
Continuing operations

Revenue
Underlying at constant currency	17,843m	16,891m	5.6%
Underlying at reported rates	17,843m	17,058m	4.6%
Reported	17,590m	16,854m	4.4%
Organic growth	5.8%	4.1%

Total operating profit
Underlying, before EM & OR restructuring, at constant currency	1,322m	1,239m	6.7%
Underlying at constant currency	1,296m	1,239m	4.6%
Underlying at reported rates	1,296m	1,245m	4.1%
Reported	1,261m	1,214m	3.9%
Organic growth, before EM & OR restructuring	6.5%	5.5%
Operating margin
Underlying, before EM & OR restructuring, at reported rates	7.3%	7.2%	+10bps
Underlying at reported rates	7.2%	7.2%	-
Reported	7.1%	7.1%	-

Profit before tax
Underlying at constant currency	1,192m	1,153m	3.4%
Underlying at reported rates	1,192m	1,159m	2.8%
Reported	1,159m	1,144m	1.3%

Basic earnings per share
Underlying at constant currency	53.7p	48.4p	11.0%
Underlying at reported rates	53.7p	48.7p	10.3%
Reported	52.3p	48.8p	7.2%

Free cash flow
Underlying	722m	737m	(2.0)%
Reported	686m	679m	1.0%

Total Group including discontinued operations
Basic earnings per share	52.3p	49.0p	6.7%
Full year dividend per ordinary share	29.4p	26.5p	10.9%

			Underlying revenue				Underlying revenue growth
			2015		2014			Constant
			m		m		Reported	Currency	Organic
	Continuing operations

	North America		9,361		8,199		14.2%	7.8%	7.9%
	Europe & Japan		5,469		5,716		(4.3)%	2.0%	1.9%
	Fast Growing & Emerging		3,013		3,143		(4.1)%	6.1%	6.9%

	Total		17,843		17,058		4.6%	5.6%	5.8%

			Underlying operating profit				Underlying operating margin
			2015		2014		2015	2014
			m		m		%	%
	Continuing operations

	North America		760		666		8.1%	8.1%
	Europe & Japan		397		409		7.3%	7.2%
	Fast Growing & Emerging		218		226		7.2%	7.2%
	Unallocated overheads		(66)		(65)

	Total before associates and EM & OR restructuring		1,309		1,236		7.3%	7.2%

Associates		13		9


	Total before EM & OR restructuring		1,322		1,245

	EM & OR restructuring		(26)
						-

	Total		1,296		1,245




1	Unless stated otherwise the data shown on pages 1 - 13 relates to the continuing business only.
2	Definitions of underlying measures of performance can be found in the glossary on page 62.

	Attributable Profit		Basic Earnings per Share
	2015	2014	2015	2014	Change
	m	m	pence	pence	%

Reported	869	865	52.3	49.0	6.7%
Discontinued operations	-	(3)	-	(0.2)	-
Other adjustments	23	(2)	1.4	(0.1)	-
Underlying	892	860	53.7	48.7	10.3%
Currency	-	(5)	-	(0.3)	-
Constant currency	892	855	53.7	48.4	11.0%

Risk	Description	Examples of Mitigation
People
Recruitment	Failure to attract and recruit people with the right skills at all levels could limit the success of the Group. The Group faces resourcing challenges in some of its businesses due to a lack of industry experience amongst candidates and appropriately qualified people, and the seasonal nature of some of our business.	The Group aims to mitigate this risk by efficient, time critical resource management, mobilisation of existing, experienced employees within the organisation and through offering training and development programmes.
Retention and motivation	Retaining and motivating the best people with the right skills, at all levels of the organisation, is key to the long term success of the Group.	The Group has established training, development, performance management and reward programmes to retain, develop and motivate our best people. The Group has a well-established employee engagement initiative, Your Voice, which helps us to monitor, understand and respond to our employees' needs.
Economic and political environment
Economy	Some sectors of our business could be susceptible to adverse changes in economic conditions and employment levels.	With the variable and flexible nature of our cost base, it is generally possible to contain the impact of these adverse conditions.
Cost inflation	Our objective is always to deliver the right level of service in the most efficient way. An increase in the cost of labour for example minimum wages in the USA and UK, or food especially in countries such as Turkey and Brazil, could constitute a risk to our ability to do this.	As part of our MAP framework, we seek to manage inflation through continuing to drive greater efficiencies through menu management, supplier rationalisation, labour scheduling and productivity. Cost indexation in our contracts also gives us the contractual right to review pricing with our clients.
Political stability	We are a global business operating in countries and regions with diverse economic and political conditions. Our operations and earnings may be adversely affected by political or economic instability.	The Group remains vigilant to future changes presented by emerging markets or fledgling administrations and we try to anticipate and contribute to important changes in public policy.

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
		Total	Total
	Notes	2015	2014 Restated¹
	Notes	m	m

CONTINUING OPERATIONS
Combined sales of Group and share of equity accounted joint ventures	1	17,843	17,058
Less: share of sales of equity accounted joint ventures		(253)	(204)
Revenue		17,590	16,854
Operating costs	2	(16,368)	(15,670)
Operating costs, excluding Emerging Markets and Offshore & Remote restructuring		(16,342)	(15,670)
Emerging Markets and Offshore & Remote restructuring		(26)	-
Operating profit before joint ventures and associates		1,222	1,184
Share of profit after tax of joint ventures and associates	1,12	39	30
Operating profit	1	1,261	1,214
Underlying operating profit	1	1,296	1,245
Amortisation of intangibles arising on acquisition	10	(26)	(25)
Acquisition transaction costs	25	(2)	(3)
Adjustment to contingent consideration on acquisition		(5)	-
Tax on share of profit of joint ventures		(2)	(3)
(Loss)/profit on disposal of US businesses		(1)	1
Profit on disposal of interest in associates		-	13
Finance income	4	3	5
Finance costs	4	(107)	(91)
Other financing items	4	3	2
Profit before tax		1,159	1,144
Income tax expense	5	(282)	(276)
Profit for the year from continuing operations	1	877	868

DISCONTINUED OPERATIONS
Profit for the year from discontinued operations	6	-	3

CONTINUING AND DISCONTINUED OPERATIONS
Profit for the year		877	871

ATTRIBUTABLE TO
Equity shareholders of the Company	7	869	865
Non-controlling interests		8	6
Profit for the year		877	871

BASIC EARNINGS PER SHARE (PENCE)
From continuing operations	7	52.3p	48.8p
From discontinued operations	7	-	0.2p
From continuing and discontinued operations	7	52.3p	49.0p

DILUTED EARNINGS PER SHARE (PENCE)
From continuing operations	7	52.2p	48.7p
From discontinued operations	7	-	0.2p
From continuing and discontinued operations	7	52.2p	48.9p

1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 Underlying operating profit excludes amortisation of intangibles arising on acquisition, acquisition transaction costs and adjustment to contingent consideration on acquisition, but includes share of profit after tax of associates and operating profit of joint ventures.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2015

	Notes	2015	2014 Restated¹
	Notes	m	m

Profit for the year		877	871
Other comprehensive income
Items that are not reclassified subsequently to profit or loss
Remeasurement of post-employment benefit obligations - loss	22	(37)	(146)
Return on plan assets, excluding interest income - gain	22	145	137
Tax on items relating to the components of other comprehensive income	5	(20)	3
		88	(6)
Items that may be reclassified subsequently to profit or loss
Currency translation differences		(92)	(103)
		(92)	(103)
Total other comprehensive loss for the year		(4)	(109)
Total comprehensive income for the year		873	762

ATTRIBUTABLE TO
Equity shareholders of the Company		865	756
Non-controlling interests		8	6
Total comprehensive income for the year		873	762
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2015
	Attributable to equity shareholders of the Company
			Share premium account		Capital redemption reserve
							Own shares		Other reserves	Retained earnings	Non- controlling interests
		Share capital											Total
		m	m		m		m		m	m	m		m
At 1 October 2014		178	174		293		(1)		4,277	(3,082)	9		1,848
Profit for the year		-	-		-		-		-	869	8		877
Other comprehensive income
Currency translation differences		-	-		-		-		(92)	-	-		(92)
Remeasurement of post-employment benefit obligations - loss		-	-		-		-		-	(37)	-		(37)
Return on plan assets, excluding interest income - gain		-	-		-		-		-	145	-		145
Tax on items relating to the components of other comprehensive income		-	-		-		-		(1)	(19)	-		(20)
Total other comprehensive (loss)/income		-	-		-		-		(93)	89	-		(4)
Total comprehensive (loss)/income for the year		-	-		-		-		(93)	958	8		873
Issue of shares (for cash)		-	2		-		-		-	-	-		2
Fair value of share-based payments		-	-		-		-		15	-	-		15
Tax on items taken directly to equity (note 5)		-	-		-		-		-	2	-		2
Share buyback ¹		(2)	-		2		-		-	(328)	-		(328)
Receipts from issue of treasury shares to satisfy employee share scheme awards exercised		-	-		-		-		-	1	-		1
Release of LTIP award settled by issue of new shares		-	6		-		-		(6)	-	-		-
Other changes		-	-		-		-		(4)	2	2		-
		176	182		295		(1)		4,189	(2,447)	19		2,413
Dividends paid to Compass shareholders (note 8)		-	-		-		-		-	(457)	-		(457)
Dividends paid to non-controlling interests		-	-		-		-		-	-	(6)		(6)
At 30 September 2015		176	182		295		(1)		4,189	(2,904)	13		1,950
1 Including stamp duty and brokers' commission.
				Share-based payment reserve							Adjustment for MI put options reserve
						Merger reserve		Revaluation reserve		Translation reserve		Total other reserves

OTHER RESERVES				m		m		m		m	m	m
At 1 October 2014				170		4,170		7		(70)	-	4,277
Other comprehensive income
Currency translation differences				-		-		-		(92)	-	(92)
Tax on items relating to the components of other comprehensive income (note 5)				-		-		-		(1)	-	(1)
Total other comprehensive loss				-		-		-		(93)	-	(93)
Fair value of share-based payments				15		-		-		-	-	15
Release of LTIP award settled by issue of new shares				(6)		-		-		-	-	(6)
Other changes				-		-		-		2	(6)	(4)
At 30 September 2015				179		4,170		7		(161)	(6)	4,189

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2015
	Notes	2015	2014 Restated ¹
	Notes	m	m
NON-CURRENT ASSETS
Goodwill	9	3,538	3,528
Other intangible assets	10	1,130	1,010
Property, plant and equipment	11	764	724
Interests in joint ventures and associates	12	203	189
Other investments	13	38	36
Trade and other receivables	14	71	70
Deferred tax assets*	5	182	246
Derivative financial instruments**	19	58	50
Non-current assets		5,984	5,853
CURRENT ASSETS
Inventories	16	282	265
Trade and other receivables	14	2,115	2,069
Tax recoverable*		64	32
Cash and cash equivalents**	17	283	408
Derivative financial instruments**	19	19	16
Current assets		2,763	2,790

Total assets		8,747	8,643
CURRENT LIABILITIES
Short term borrowings²**	18	(247)	(315)
Derivative financial instruments**	19	(7)	(4)
Provisions	21	(136)	(161)
Current tax liabilities*		(169)	(148)
Trade and other payables²	20	(3,157)	(3,077)
Current liabilities		(3,716)	(3,705)
NON-CURRENT LIABILITIES
Long term borrowings**	18	(2,684)	(2,525)
Derivative financial instruments**	19	(25)	(1)
Post-employment benefit obligations	22	(9)	(170)
Provisions	21	(251)	(277)
Deferred tax liabilities*	5	(28)	(39)
Trade and other payables	20	(84)	(78)
Non-current liabilities		(3,081)	(3,090)
Total liabilities		(6,797)	(6,795)

Net assets		1,950	1,848
EQUITY
Share capital	23	176	178
Share premium account		182	174
Capital redemption reserve		295	293
Less: Own shares		(1)	(1)
Other reserves		4,189	4,277
Retained earnings		(2,904)	(3,082)
Total equity shareholders' funds		1,937	1,839

Non-controlling interests		13	9
Total equity		1,950	1,848
* Component of current and deferred taxes. ** Component of net debt.
¹ 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
² 2014 has been restated to reflect a reclassification between other payables and short term borrowings.

Approved by the Board of Directors on 24 November 2015 and signed on their behalf by

RICHARD COUSINS, Director
DOMINIC BLAKEMORE, Director

RECONCILIATION OF FREE CASH FLOW FROM CONTINUING OPERATIONS
FOR THE YEAR ENDED 30 SEPTEMBER 2015
	2015	2014 Restated ¹
	m	m

Net cash from operating activities of continuing operations	1,138	1,098
Purchase of intangible assets	(222)	(206)
Purchase of property, plant and equipment	(282)	(261)
Proceeds from sale of property, plant and equipment/intangible assets	28	22
Purchase of other investments	(1)	(2)
Proceeds from sale of other investments	1	3
Dividends received from joint ventures and associates	27	22
Interest received	3	6
Dividends paid to non-controlling interests	(6)	(3)
Free cash flow from continuing operations	686	679
Add back: Europe & Japan cash restructuring costs in the year	36	58
Underlying free cash flow	722	737
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11.

	NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
	FOR THE YEAR ENDED 30 SEPTEMBER 2015

	The financial information included within this announcement has been prepared using accounting policies in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted for use in the European Union (EU), and in accordance with the Disclosure and Transparency Rules (DTR) of the Financial Conduct Authority. The financial information set out below does not constitute the Company's statutory accounts for the years ended 30 September 2015 or 2014, but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered following the Company's Annual General Meeting. The Auditor has reported on those accounts; its Reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying its Report and did not contain statements under s498(2) or (3) Companies Act 2006.
1 SEGMENTAL REPORTING
The management of the Group's operations, excluding Central activities, is organised within three segments: North America, the more developed markets of Europe & Japan and our Fast Growing & Emerging markets. These, together with Central activities, comprise the Group's reportable segments. These segments comprise countries which are at similar stages of development and demonstrate similar economic characteristics. Each segment derives revenue from delivery of food and support services.

	Geographical segments
	North	Europe &	Fast Growing
	America	Japan	& Emerging	Total
REVENUE ¹	m	m	m	m

YEAR ENDED 30 SEPTEMBER 2015
Combined sales of Group and share of equity accounted joint ventures^2,3	9,361	5,469	3,013	17,843

YEAR ENDED 30 SEPTEMBER 2014
Combined sales of Group and share of equity accounted joint ventures^2,3	8,199	5,716	3,143	17,058

	Sectors
						Defence,
	Business			Healthcare	Sports	Offshore
REVENUE ¹	& Industry		Education	& Seniors	& Leisure	& Remote	Total
REVENUE ¹	m	m		m	m	m	m

YEAR ENDED 30 SEPTEMBER 2015
Combined sales of Group and share of equity accounted joint ventures²	6,743	3,139		3,847	2,138	1,976	17,843

YEAR ENDED 30 SEPTEMBER 2014
Combined sales of Group and share of equity accounted joint ventures²	6,783	2,815		3,515	1,857	2,088	17,058

1 There is no inter-segmental trading.
2 This is the revenue measure considered by the chief operating decision maker. 3 Continuing underlying revenue from external customers arising in the UK, the Group's country of domicile, was 1,912 million (2014: 1,787 million). Continuing underlying revenue from external customers arising in the US was 8,557 million (2014: 7,413 million). Continuing underlying revenue from external customers arising in all foreign countries from which the Group derives revenue was 15,931 million (2014: 15,271 million).

1 SEGMENTAL REPORTING CONTINUED	Geographical segments
	North	Europe &	Fast Growing	Central
	America	Japan	& Emerging	activities	Total
RESULT	m	m	m	m	m
YEAR ENDED 30 SEPTEMBER 2015
Underlying operating profit before joint ventures and associates and Emerging Markets and Offshore & Remote restructuring	759	395	193	(66)	1,281
Add: Share of profit of joint ventures	1	2	25	-	28
Underlying operating profit before associates and Emerging Markets and Offshore & Remote restructuring	760	397	218	(66)	1,309
Add: Share of profit of associates	8	5	-	-	13
Underlying operating profit before Emerging Markets and Offshore & Remote restructuring	768	402	218	(66)	1,322
Less: Emerging Markets and Offshore & Remote restructuring¹	-	-	(21)	(5)	(26)
Underlying operating profit²	768	402	197	(71)	1,296
Less: Amortisation of intangibles arising on acquisition	(15)	(5)	(6)	-	(26)
Less: Acquisition transaction costs	(2)	-	-	-	(2)
Less: Tax on share of profit of joint ventures	-	(1)	(1)	-	(2)
Add: Adjustment to contingent consideration on acquisition	(5)	-	-	-	(5)
Total operating profit - continuing	746	396	190	(71)	1,261
Loss on disposal of US business					(1)
Finance income					3
Finance costs					(107)
Other financing items					3
Profit before tax					1,159
Income tax expense					(282)
Profit for the year from continuing operations					877

2 OPERATING COSTS
	Total	Total
OPERATING COSTS²	2015	2014 Restated ¹
OPERATING COSTS²	m	m
Cost of food and materials:
Cost of inventories consumed	5,219	5,027
Labour costs:
Employee remuneration (note 3)	7,959	7,720
Overheads:
Depreciation - owned property, plant and equipment	190	185
Depreciation -leased property, plant and equipment	3	4
Amortisation - owned intangible assets	147	128

Property lease rentals	74	79
Other occupancy rentals - minimum guaranteed rent	64	62
Other occupancy rentals - rent in excess of minimum guaranteed rent	11	13
Other asset rentals	72	76

Audit and non-audit services	5	6

Emerging Markets and Offshore & Remote restructuring	26	-

Other expenses	2,565	2,342
Operating costs before costs relating to acquisitions	16,335	15,642

Amortisation - intangible assets arising on acquisition	26	25
Acquisition transaction costs	2	3
Adjustment to contingent consideration on acquisition	5	-
Total continuing operations	16,368	15,670
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.
2 Operating costs excludes costs relating to Emerging Markets and Offshore & Remote restructuring, which comprise 17 million employee remuneration, 2 million depreciation owned property, plant and equipment, 1 million property lease rentals and 6 million other expenses (2014: nil).

3 EMPLOYEES
AVERAGE NUMBER OF EMPLOYEES, INCLUDING DIRECTORS AND PART-TIME EMPLOYEES	2015	2014 Restated ¹
	Number	Number
North America	226,618	214,511
Europe & Japan	150,816	150,847
Fast Growing & Emerging	138,430	138,179
Total continuing operations	515,864	503,537

AGGREGATE REMUNERATION OF ALL EMPLOYEES INCLUDING DIRECTORS	2015 ²	2014 Restated ³
AGGREGATE REMUNERATION OF ALL EMPLOYEES INCLUDING DIRECTORS	m	m
Wages and salaries	6,708	6,444
Social security costs	1,136	1,164
Share-based payments	15	15
Pension costs - defined contribution plans	84	85
Pension costs - defined benefit plans	16	12
Total continuing operations	7,959	7,720
1 2014 has been restated to reflect the average number of employees on a consistent basis with current year.
2 Aggregate remuneration of all employees including directors excludes Emerging Markets and Offshore & Remote restructuring costs of 17 million. 3 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11.

4 FINANCE INCOME, COSTS AND RELATED (GAINS)/LOSSES
Finance income and costs are recognised in the income statement in the period in which they are earned or incurred.
FINANCE INCOME AND COSTS	2015	2014
	m	m
FINANCE INCOME
Bank interest	3	5
Total finance income	3	5
FINANCE COST
Interest on bank loans and overdrafts	13	11
Interest on other loans	82	69
Finance lease interest	1	1
Interest on bank loans, overdrafts, other loans and finance leases	96	81
Unwinding of discount on provisions	6	3
Interest on net post-employment benefit obligations (note 22)	5	7
Total finance costs	107	91
ANALYSIS OF FINANCE COSTS BY DEFINED IAS 39 CATEGORY
Fair value through profit or loss(unhedged derivatives)	5	4
Derivatives in a fair value hedge relationship	(23)	(28)
Derivatives in a net investment hedge relationship	5	3
Other financial liabilities	109	102
Interest on bank loans, overdrafts, other loans and finance leases	96	81
Fair value through profit or loss (unwinding of discount on provisions)	6	3
Outside of the scope of IAS 39 (net pension scheme charge)	5	7
Total finance costs	107	91
1 IAS 39 'Financial Instruments: Recognition and Measurement'.

The Group uses derivative financial instruments such as forward currency contracts, cross currency swaps and interest rate swaps to hedge the risks associated with changes in foreign currency exchange rates and interest rates. As explained in section Q of the Group's accounting policies in the 2015 Annual Report, such derivative financial instruments are initially measured at fair value on the contract date, and areremeasured to fair value at subsequent reporting dates. For derivative financial instruments that do not qualify for hedge accounting, any gains or losses arising from changes in fair value are taken directly to the income statement in the period.
FAIR VALUE MEASUREMENT
All derivative financial instruments are shown at fair value in the balance sheet. All the derivatives held by the Group at fair value are considered to have fair values determined by Level 2 inputs as defined by the fair value hierarchy of IFRS 13 'Fair value measurement'. The fair values of derivative financial instruments represent the maximum credit exposure.

	2015	2014
FINANCING RELATED (GAINS)/LOSSES	m	m
HEDGE ACCOUNTING INEFFECTIVENESS
Unrealised net losses on unhedged derivative financial instruments¹	3	-
Unrealised net gains on derivative financial instruments in a designated fair value hedge²	(32)	(23)
Unrealised net losses on the hedged item in a designated fair value hedge	26	23
Total hedge accounting ineffectiveness	(3)	-
CHANGE IN THE FAIR VALUE OF INVESTMENTS
Gain from the changes in the fair value of investments^1,3	-	(2)
1 Categorised as derivatives that are designated and effective as hedging instruments carried at fair value (IAS 39).
2 Categorised as 'fair value through profit or loss' (IAS 39).
3 Life insurance policies used by overseas companies to meet the cost of unfunded post-employment benefit obligations included in note 22.

5 TAX

RECOGNISED IN THE INCOME STATEMENT:	2015	2014 Restated ¹
INCOME TAX EXPENSE ON CONTINUING OPERATIONS	m	m
CURRENT TAX
Current year	284	269
Adjustment in respect of prior years	(24)	1
Current tax expense	260	270
DEFERRED TAX
Current year	12	9
Impact of changes in statutory tax rates	1	1
Adjustment in respect of prior years	9	(4)
Deferred tax expense	22	6
TOTAL INCOME TAX
Income tax expense on continuing operations	282	276
1 2014 has been restated for the change in the accounting treatment of joint ventures in accordance with IFRS11, as detailed in note 15.

		2014
	2015	Restated ¹
	m	m

Profit before tax from continuing operations	1,159	1,144
Notional income tax expense at the effective UK statutory rate of 20.5% (2014: 22.0%) on profit before tax	238	252
Effect of different tax rates of subsidiaries operating in other jurisdictions	136	116
Impact of changes in statutory tax rates	1	1
Permanent differences	(74)	(83)
Impact of share-based payments	1	1
Tax on profit of associates and equity accounted joint ventures	(3)	(4)
Losses and other temporary differences not previously recognised	(6)	(7)
Unrelieved current year tax losses	4	3
Prior year items	(15)	(3)
Income tax expense on continuing operations	282	276

	2015	2014
TAX (CHARGED)/CREDITED TO OTHER COMPREHENSIVE INCOME	m	m
Current and deferred tax (charges)/credits on actuarial and other movements on post-employment benefits	(19)	6
Current and deferred tax (charges) on foreign exchange movements	(1)	(3)
Tax (charge)/credit on items recognised in other comprehensive income	(20)	3

	2015	2014
Tax credited to equity	m	m
Current and deferred tax credits in respect of share-based payments	2	6
Tax credit on items recognised in equity	2	6

5 TAX CONTINUED

MOVEMENT IN NET DEFERRED TAX ASSET/(LIABILITY)	Tax depreciation	Intangibles	Pensions and post-employment benefits	Tax losses	Self-funded insurance provisions	Net short-term temporary differences	Total Restated¹
MOVEMENT IN NET DEFERRED TAX ASSET/(LIABILITY)	m	m	m	m	m	m	m
At 1 October 2013	9	(183)	136	21	64	180	227
Credit/(charge) to income	4	(7)	7	1	3	(14)	(6)
(Charge)/credit to equity/other comprehensive income	-	-	(6)	-	-	1	(5)
Business acquisitions	-	(6)	-	-	-	1	(5)
Other movements	-	-	-	1	-	(1)	-
Exchange adjustment	-	5	(1)	(2)	-	(6)	(4)
At 30 September 2014¹	13	(191)	136	21	67	161	207
At 1 October 2014	13	(191)	136	21	67	161	207
(Charge)/credit to income	(4)	(13)	3	1	(1)	(8)	(22)
Charge to equity/other comprehensive income	-	-	(28)	-	-	(3)	(31)
Business acquisitions	-	(4)	-	-	-	1	(3)
Other movements	-	(1)	-	1	-	(1)	(1)
Exchange adjustment	(2)	1	7	(2)	5	(5)	4
At 30 September 2015	7	(208)	118	21	71	145	154

	2015	2014
NET DEFERRED TAX BALANCE	m	m
Deferred tax assets	182	246
Deferred tax liabilities	(28)	(39)
Net deferred tax asset	154	207

Unrecognised deferred tax assets in respect of tax losses and other temporary differences amount to 39 million (2014: 42 million). Of the total, 25 million relates to tax losses which will expire at various dates between 2015 and 2022. These deferred tax assets have not been recognised as the timing of recovery is uncertain.
The Group does not recognise any deferred tax liability on temporary differences relating to potentially taxable unremitted earnings of overseas subsidiaries totalling 370 million (2014: 448 million) because it is able to control the timing of reversal of these differences. It is probable that no reversal will take place in the foreseeable future.

6 DISCONTINUED OPERATIONS
The profit for the year from discontinued operations was nil (2014: 3 million).

FINANCIAL PERFORMANCE OF DISCONTINUED OPERATIONS	2015	2014
FINANCIAL PERFORMANCE OF DISCONTINUED OPERATIONS	m	m
TRADING ACTIVITIES OF DISCONTINUED OPERATIONS
Operating costs	-	-
Loss before tax	-	-
Income tax credit	-	3
Profit after tax	-	3
PROFIT FOR THE YEAR FROM DISCONTINUED OPERATIONS
Profit for the year from discontinued operations	-	3

INCOME TAX FROM DISCONTINUED OPERATIONS	2015	2014
INCOME TAX FROM DISCONTINUED OPERATIONS	m	m
INCOME TAX ON TRADING ACTIVITIES OF DISCONTINUED OPERATIONS AND ON DISPOSAL OF NET ASSETS AND OTHER ADJUSTMENTS RELATING TO DISCONTINUED OPERATIONS
Current tax	-	3
Deferred tax	-	-
Income tax credit on discontinued operations	-	3

Net assets disposed and disposal proceeds	2015	2014
Net assets disposed and disposal proceeds	m	m
Decrease in retained liabilities¹	-	(1)
Consideration (net of costs)	-	(1)
Cash outflow from disposals	-	(1)
1 Includes the utilisation of disposal provisions of 1 million in the year ended 30 September 2014.

7 EARNINGS PER SHARE
The calculation of earnings per share is based on earnings after tax and the weighted average number of shares in issue during the year. The adjusted earnings per share figures have been calculated based on earnings excluding the effect of discontinued operations, the amortisation of intangible assets arising on acquisition, acquisition transaction costs, adjustment to contingent consideration on acquisition, European exceptional, gains and losses on disposal of businesses, hedge accounting ineffectiveness, change in fair value of investments and the tax attributable to these amounts. These items are excluded in order to show the underlying trading performance of the Group.
	2015	2014
	Attributable	Attributable
ATTRIBUTABLE PROFIT	profit	profit
	m	m
Profit for the year attributable to equity shareholders of the Company	869	865
Less: Profit for the year from discontinued operations	-	(3)
Attributable profit for the year from continuing operations	869	862
Amortisation of intangible assets arising on acquisition (net of tax)	20	18
Acquisition transaction costs (net of tax)	1	2
Adjustment to contingent consideration on acquisition (net of tax)	3	1
European exceptional (net of tax)	-	(7)
Loss/(profit) on disposal of US businesses (net of tax)	1	(1)
Profit on disposal of interest in associate (net of tax)	-	(13)
Hedge accounting ineffectiveness (net of tax)	(2)	-
Profit from change in the fair value of investments (net of tax)	-	(2)
Underlying attributable profit for the year from continuing operations	892	860