Rentokil Initial full year results

LONDON (AFX) – Rentokil Initial PLC, the supplier of business services from
pest control to washroom products, reported a 4.3 pct rise in full year profit
and said 2003 should see “strong growth” in earnings and sales.
For the 12 months to end-December, pretax profit came in at 390.3 mln stg,
up from 374.3 mln.
Turnover was up 4.3 pct at 2.34 bln stg.
Analysts were expecting a profit of 390-395 mln stg.
Recently-appointed chief executive James Wilde, who took over from Clive
Thompson in January, said the company would continue to seek out “bolt-on”
acquisitions, particularly within its hygiene services and security markets.
Wilde, whose first move as CEO was to do away with the company’s
geography-based structure and instead organise it by business units, said the
firm’s current strategy remains “appropriate”.
The company focuses on seven main activities: pest control, parcels
delivery, conferencing, tropical plants, security services, hygiene services and
facilities management.
“As a result of the strategic restructuring of the business in 2000, which
was partly designed to minimise the exposure to cyclical businesses,the
company’s activities are exhibiting good resilience to the current downturn in
the world’s economies,” he said.
He also said it would continue with its share buyback programme.
“On this basis, we aim for strong growth in turnover, profits before tax and
earnings per share (in 2003),” he said.
Wilde said the new divisional structure — the result of a recent business
review — could lead to the integration of certain back office functions and a
more streamlined management.