Rentokil profits rise

PEST control to delivery firm Rentokil Initial today said cut-throat competition across several markets had squeezed sales despite cost-cutting moves boosting profits.

By The Newsroom

Published 30th Jul 2010, 10:37 BST

The firm reported tough conditions across most markets - particularly continental Europe - with "continued strong pricing pressure in a number of categories".

Rentokil added cost-slashing plans were running ahead of its 75m target for the full year, with 40m in supply chain savings and redundancies across the group made during the first half.

The group, which employs 68,000 people worldwide, shed 250 jobs with the closure of a delivery hub for its City Link parcels business at Wednesbury in the West Midlands.

The savings pushed up underlying pre-tax profits 39 per cent to 77m although first-half revenues were down 2.3 per cent to 1.23bn.