Rentokil chairman promises major review

The new boss of hygiene and security group Rentokil Initial today announced a root and branch review of the business after the company ousted its chairman and warned on profits.

Brian McGowan said he was going to look at “every aspect of the company’s operations” after he replaced Clive Thompson, who became known as “Mr 20%” for his earnings record while he was chief executive of Rentokil.

Rentokil, which provides pest control, washroom, security guarding and other services in 40 countries, including Ireland and the UK, said last week that profits in the first four months of the current financial year would be 6.2% down on the previous year despite a 3% increase in turnover.

There are about 200 people emplyed by Rentokil in Ireland in seven outlets (three pest control, two healthcare, one specialising in tropical plants and one in textiles).

Forecasting a full year pre-tax profit of no less than £350m (€524m), Mr McGowan described the figures as extremely disappointing.

He added at the company’s annual meeting that the last week had been one of the most difficult in Rentokil’s history and the decision to request the departure of Clive Thompson – whom he described as one of the most successful businessmen of the Eighties and Nineties – had not been easy.

But Mr McGowan said it had been clear to the board that a fresh perspective and new leadership for the business was needed.

“None of us derived any pleasure from the events of the last week,” he said.

“But the focus must now be on the future of the business. Despite all the press comment we must not forget that Rentokil Initial remains a wonderful business.”