COMPASS reported a weak performance at its schools arm as students shunned healthier food during their lunch breaks.

The company reported a six per cent increase in pre-tax profits to é363m during the year to September 30 as revenues grew seven per cent to é10.8bn.

Compass has been rebuilding after a profits warning caused by weaker margins on UK school meal contracts and poor summer trading in Europe.

The firm reported turnover at the UK operations had remained generally flat at é1.95bn, but admitted feeling the pinch in school canteens.

In March, Compass said the state education sector remained the most testing as clients came under pressure to overhaul school menus.