Rentokil profits down 55.9%

Rentokil Initial today said parcel delivery business City Link remained “significantly loss making” as the group reported a 55.9% slump in operating profits.

The firm, which also provides pest control and hygiene services, reported profits of £32.3m (€40m) at constant exchange rates for the third quarter to September 30, down from £73.3m (€90m) last year.

Rentokil saw £6m (€7.4m) of bad debt provisions in its UK washrooms business, which it said continued to suffer from high levels of contract terminations.

And the group said operating profits were adversely affected by City Link’s loss of £12m (€14.7m) against its £11.4m (€14m) profit in 2007. This was despite “excellent progress” in customer service and new business wins.