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No bonanza for Rentokil's City Link division during the postal strikes
Recent postal strikes have not proved a windfall for Rentokil Initial's troubled City Link delivery business, the firm said.
Rentokil "has benefited indirectly and to a modest extent" since the end of September as existing customers switch more traffic to City Link – but the company also complained about the high costs involved with sudden surges in demand.
Losses at City Link narrowed sharply to 1.3m in the three months to September 30 – compared with 11.6m a year earlier – after a cost-cutting drive.
Rentokil predicts a 7m loss for the parcels firm this year, lower than the 12m originally forecast. It has closed 12 City Link depots and cut more than a third of vehicles from its fleet since December – slashing staff numbers by almost a fifth to 5,500. The firm posted pre-tax profits between July and September of 42.3m adjusted for exchange rates – 82 per cent up on the same period last year.
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Thursday 24 May 2012
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