The world’s largest catering supplier Compass has seen its shares dive after a profit warning and the announcement of the departure of its chief executive.
The under-pressure firm is to put its Select Service Partner travel concessions portfolio up for sale, which includes well-known brands such as Upper Crust, Harry Ramsdens, Millie's Cookies and WhistleStop, for a reported £1bn.
The decision to offload the operation - based at airports, railway stations and motorway service areas - follows a strategic review at the world's biggest food service firm.
Chief executive Mike Bailey will step down, just four months after long-time chairman Francis Mackay said he would quit, sparking speculation of serious boardroom unrest.
Compass predicted it will have achieved pre-tax profits of about £580m for the year to the end of September, significantly down from £654m last year.
Selling Select Service Partner would allow Compass to focus on supplying school meals to children and other contract catering, as well as support services, Bailey said.
Proceeds from any sale will be ploughed into strengthening the balance sheet and paying down debt, although some will be returned to shareholders.
No reason was given for the 56-year-old Bailey’s decision to step down, and no name has been put forward to fill his shoes.
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