Compass Group said the sale of its travel concessions business is due to complete by mid-2006, as it held its annual general meeting last week.
The company is selling is Select Service Partner division, including brands such as Millies Cookies and Upper Crust. It wants to shed the 1,400 concessions to focus on its core contract catering businesses, as it would have to invest heavily to maintain its position in the market. Chairman Sir Francis Mackay said: “The sale is progressing well and we are encouraged by the level of interest.”
Compass said overall trading is in line with expectations and it is seeing good success in new contract gains. It is continuing to exit or renegotiate contracts that do not meet financial criteria.
The group has substantially completed a restructuring programme, announced in 2005, and remains on track to deliver the targeted £50 million in overhead cost savings. Tight cost control will continue to be a central feature of the group, it said.
In the UK, the primary business sectors are trading in line with expectations, it added.