Report: Break-up on agenda at Rentokil Initial

The break-up of pest control-to-security group Rentokil Initial is to be examined by the troubled company’s new chairman, it was reported today.

Brian McGowan, who took the helm following the ousting of Sir Clive Thompson last week, is said to be prepared to ask boardroom colleagues to “think the unthinkable” at the £2.7bn (€4bn)-valued group.

The report comes after a traumatic week in which Rentokil issued a profits warning and said the time was right for Thompson – known as Mr 20% for his earnings record while the company’s chief executive – to leave.

Mr McGowan, who was previously deputy chairman, is quoted in today’s Sunday Times as saying he wants the board to consider all options: “I want them to open up their minds.

"This is a company with no sacred cows. I don’t know what we are going to do, I just know that something needs to be done.”

The most likely candidates for sale are the parcel delivery and conference businesses, which are worth an estimated £600m (€894.1m). The proceeds could then be returned to shareholders, today’s report added.

It is believed that Thompson had earlier favoured selling the two businesses, while he was also thought to be critical of the high levels of investment planned by chief executive James Wilde in sales and IT.

Meanwhile, Thompson – Rentokil’s chief executive for 20 years and chairman from 2002 – has been linked to two of the UK’s biggest companies.

Thompson told the Independent on Sunday that he had been approached to be chairman of two FTSE 100 Index companies – posts that are believed to be Sainsbury’s and Marks & Spencer.

However, he said he expected his ousting from Rentokil may have put him out of the running: “I can’t imagine it improved my reputation”, he told the paper.