By Michael Susin

Compass Group PLC on Tuesday reported a increase in pretax profit for fiscal 2021 as it booked lower costs and returned to the dividend list.

The U.K. catering contractor made a pretax profit of 464 million pounds ($621.6 million) for the year ended Sept. 30 compared with GBP210 million for fiscal 2020.

Revenue fell to GBP17.91 billion from GBP19.94 billion a year earlier as the pandemic continued to hit the sales.

The board reinstated the dividend policy of a final dividend of 14 pence a share and said it will pay 50% of underlying earnings through an interim and final dividend in fiscal 2022.

Underlying operating margin was 4.5% compared with 2.9% the previous period as the group reduced the cost base and adapted the operation.

Compass said it expects for the next full year an underlying operating margin to be more than 6%, with an exit rate of 7%, while the revenue growth should increase around 20% and 25%. The company sees a stronger performance toward the second half of the year due to the current inflationary pressures.

"Looking ahead we are now focused on growth, driven by encouraging market trends and our ability to provide more bespoke, digital and sustainable solutions that meet the evolving needs of clients in a post-pandemic world. The tailwinds from first time outsourcing continue and, combined with our differentiated operating model and investment opportunities, we are in a strong position for growth," Chief Executive Dominic Blakemore said.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

11-23-21 0255ET