The state school division at catering giant Compass has suffered as a result of Jamie Oliver’s drive to abolish unhealthy school meals.
Compass said the state education sector - primary and secondary - is its most challenging division, following the transition to healthier eating and it is seeking to redevelop or terminate its ill-performing contracts.
Last year the catering group’s working profits fell by almost a third to £205m but the company said first half trading for 2006 was in-line with forecasts and that it was handling the challenge of providing healthier food “better than most”.
In addition, Compass claimed it is has suffered no major impact from the barrage of negative press it has received.
In the last 18 months the company has issued three profit warnings, been drawn into a UN investigation into concerns with contracts and been questioned over its purchasing methods.
The company has announced plans to sell its Select Services Partners component - worth up to £1.4bn - by the middle of the year.
Compass’s UK operations account for around a quarter of the £12.7bn generated by the company worldwide.
