Compass, the catering company, revealed yesterday that it had joined the list of businesses considering moving their headquarters from the UK for tax reasons.

Richard Cousins, the chief executive, said that a team had been looking into a move for several months but there would be no “snap decisions”.

Mr Cousins said: “Of course, we are looking at it, all companies are. I get the impression that it is on everyone’s agenda.”

His comments come days after the Treasury admitted drawing up a new set of tax proposals. They are expected to be published next month. Several British multinationals, including Shire, the pharmaceuticals business, and United Business Media, the publisher, have said that they are moving to lower-cost tax locations after suggestions that the Treasury may make foreign profits taxable.

WPP, the advertising group, is also considering its options.

The news from Compass came after it pledged to hand back £400 million to investors over the next 18 months through a share buyback and as it published interim results that were better than expected, easing fears that it would be hit by the rising cost of food.

For the six months to March 31, pre-tax profits rose 29 per cent to £289 million, while sales rose 5 per cent to £5.6 billion. The company increased its interim dividend by 11 per cent to 4p. Sales in America, which account for about 40 per cent of group revenues, were strong, up 7 per cent, driven by its healthcare business.

Compass said that there continued to be annual inflation of 4 to 5 per cent on the £3.5 billion of food it buys each year, with dairy, rice and pasta prices rising considerably faster. However, it had mitigated higher costs by one percentage point with menu planning and other cost-saving measures.

Andrew Darke, an Evolution Securities analyst, said that the company had comprehensively answered concerns over food price inflation and worries over a slowdown in consumer spending.

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