Rentokil profits slump

Pest control-to-hygiene firm Rentokil Initial today said first-half profits slumped by more than half as it battles to revive its ailing City Link business in a worsening economic climate.

The firm, which has issued four profits warnings since December, said the troubled delivery arm had stabilised but warned losses would continue for the rest of the year.

The economic slowdown is also hitting its UK pest-control business - with falling revenues in June and July and enquiries tailing off in recent weeks - with further issues in its washrooms division.

Chief executive Alan Brown - one of a trio of former ICI bosses drafted in to turnaround Rentokil in March - said: "We have a lot to do and will have to deliver it in increasingly difficult economic circumstances."

Rentokil said underlying pre-tax profits had fallen by 55% to £39.3m (€49.5m) in the six months to June 30.