Revenue at Compass Group has increased by 11.2% in the first half of its financial year, reaching $20.9bn (£16.5bn).

The British contract foodservice business also saw its operating profit jump by 18.7% year-on-year, reaching $1.5bn (£1.2bn).

In this time, the group said it had made investments within its portfolio, with $373m (£294.8m) spent on mergers and acquisitions (M&A), including the acquisitions of HOFFMAN and CH&CO.

Group chief executive at Compass Group, Dominic Blakemore, said: "The group has delivered a strong set of results, with balanced double-digit organic revenue growth and good underlying operating margin progression across all regions, leading to underlying operating profit growth of 19% on a constant-currency basis.

"Europe is building a strong track record of growth, having benefited from investment and best practice sharing. We have completed the acquisitions of HOFMANN in Germany and CH&CO in the UK and Ireland, increasing operational flexibility as well as further strengthening our unique sectorised approach to the market.

"Our results are driving strong cash generation which in turn gives us the flexibility to invest capital back in the business through capex and strategic in-fill M&A, to support future growth through sectorisation and flexible operating models, both of which generate excellent returns."

For the rest of the year, Compass has said that it expects underlying operating profit growth towards 15%, with organic revenue expected to increase by 10% by the end of the financial year.

Additionally, the firm announced that it had completed half of its $500m share buyback in this period, which was announced in November 2023.

Head of equity funds at Hargreaves Lansdown, Steve Clayton, added: "The market was expecting a strong report from Compass today and the half-year results have duly delivered. The world’s largest contract catering business, Compass is firing on all cylinders, with all regions delivering double-digit organic revenue growth in the first half.

"Compass is hailing its improved European performance, described as a step-change. Historically, the group has struggled on the Continent, with too much exposure to declining industries and ill-structured contracts. Current performance looks much better and Compass is transferring best practices from the rest of the group to build a stronger European division. The prize is potentially large, since margins remain far below the group averages, but this could also be a source of future risk should momentum.

"Overall though, a solid performance from Compass, with the group showing the strength of their management team in the consistency of delivery and their focus on continual improvement within their operations. The structural growth opportunities in the catering market remain substantial leaving the growth with a significant growth runway ahead."

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