LONDON - Rentokil Initial said it will focus on a growth strategy after reporting that third-quarter pretax profit more than doubled, boosted by progress in its turnaround business and the stronger euro.
The company said that, in the fourth quarter, it would continue to focus on delivering service, cutting costs and generating cash amid continuing difficult trading conditions.
Analysts said that Rentokil's figures were better than expected and the lower expected losses in its troubled parcels business City Link were welcome.
Rentokil is undergoing a three- to five-year restructuring process after the performance of its City Link business sparked several profit warnings and a change of management.
According to Rentokil Third Quarter Trading Report, the company’s UK Pest Control’s turnaround is “gathering momentum, but still much to do:”
- State of service now 99.9%
- Client retention 76% in August and September – highest rate since Q1 2008
- Q3 sales from SME contracts - highest level since Q1 2008
- Improvements in sales and service colleague retention Group strategic plan updated during the quarter – focus on growth agenda and ‘Programme Olympic’, a series of initiatives targeting industry-leading service quality and the reduction of administration and overhead costs across the group