Finally a welcome break for shareholders in the troubled Compass Group. The world’s largest contract caterer announced on Sunday that it had sold its travel concession catering business Select Service Partner for £1.82bn, considerably more than expected.

From the post-tax proceeds, Compass plans to put £500m into buying back shares, £275m into its £530m FRS17 pension fund deficit, £143m into its fast-growing US business, Levy Restaurants, and £780m to reduce its £2.3bn net debt. While this is all good news for investors, who have seen their shares fall 30 per cent since the first of three profit warnings in September 2004, the sale does not provide a way out from the serious challenges Compass still faces.