Rentokil to recruit drivers for City Link

Support services firm Rentokil Initial is to recruit hundreds of drivers for its struggling City Link delivery arm after admitting that previous job cuts had gone too far.

Chief executive Alan Brown will launch a national recruitment campaign in the new year after axing too many drivers from the business in a bid to cut costs and spending too much on more-costly sub-contractors.

Former ICI boss Mr Brown was drafted in more than two years ago to lead the revival of Gatwick-based Rentokil after recession and a botched expansion under previous management plunged City Link into the red.

Hide Ad
Hide Ad

The group yesterday posted a 16 per cent rise in adjusted pre-tax profits to 57.3m in the three months to September 30 after a rapid increase in calls to deal with bed bugs ensured strong growth at its pest control division.

But City Link reported an operating loss of 1.3m for the quarter, which was flat year-on-year, due to an "extremely competitive market" and price-cutting across the industry.

Mr Brown said he expected the trading performance in the fourth quarter to remain difficult for City Link, but added that group full year performance was likely to be in line with market forecasts.

Although City Link is still making a loss, its year-to-date operating losses have improved by 28 per cent on a year earlier, on the back of a structural reshuffle within the business.

The overall group performance was lifted by strong profit growth in the pest control division, particularly in the UK and United States.

Related topics: