CATERING group Compass said strong growth in its defence, health and education businesses helped it post a 29 per cent rise in half-year pre-tax profits to £145m.

The company said new business grew by 12 per cent during the six months to March 31, boosted by new or renewed contracts with schools, hospitals, London Zoo and oil companies.

Its workplace catering division Eurest, based in Leeds, was one of the star performers in the group, with £9m of new and retained business.

Eurest recently agreed to provide catering for workers at SembCorp Utilities, on Teesside.

Compass, the world's largest food service group, which provides catering for British armed forces in the UK and, it is believed, in Iraq, also won a number of contracts with foreign defence ministries.

The group, which owns Harry Ramsden's fish and chip shops, Caf Ritazza and Upper Crust sandwich kiosks, said its UK business increased like-for-like turnover by five per cent during the year.