Rentokil Announces Second Quarter Results

LONDON -  Rentokil Initial shares rose 7 percent to a 12-month high after the company beat second-quarter profit forecasts and raised its target for cost cutting. The company said it now expects to make $116 million of cost savings this year.

According to the report pest control delivered a stable performance in mainland Europe and the U.S. despite weakened economic conditions. New UK management put in place at the end of Q1 in UK Pest has stabilized that business and Q2 has shown an improved performance on Q1 2009. Overall divisional revenue increased by 0.9% year-on-year in H1, despite UK revenue falling 10.2%, although UK revenue decline decreased by 4.9% in Q2. Excluding the UK, revenue growth was 2.9% ahead of last year. The rate of new contract business declined by 15.1% and job sales fell by 3.6%. Retention rates have declined marginally in most countries.

In other Rentokil news Andy Ransom has been appointed to the role of divisional managing director of pest control & ambius, effective Oct. 1, 2009. Ransom takes over the leadership of the pest control division from Andy Hobart, who is leaving the company.

Source: http://www.rentokil-initial.com/