Rentokil Issues First-Half Earnings Report

LONDON — Rentokil Initial said first-half earnings fell 50 percent after it lost some contracts.

Rentokil Initial Plc, the U.K. company whose services range from pest control to tropical plants, said first-half earnings fell 50 percent after it lost some contracts.

Net income declined to 65.5 million pounds ($131 million), or 3.62 pence a share, from 133.3 million pounds, or 7.38 pence, a year earlier, the London-based company said today in a statement. Revenue rose 21 percent to 1.06 billion pounds, boosted by acquisitions.

Rentokil said 82.9 million pounds of contracts were canceled in the period, mostly in its U.K. washroom unit, amid competition and service disruptions. The company is reorganizing after seven years of falling profitability. Chief Executive Officer Doug Flynn, who aims to return to growth by 2008, sold two security units and is expanding more-profitable businesses such as parcel delivery and pest control.

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Source: Bloomberg News