Rentokil gets ratty over City Link and shows boss the door

Rentokil Initial has axed the head of its troubled courier business, City Link, following last December’s shock profits warning.

Michael Cooke has been turfed out just two weeks before Rentokil announces fullyear figures, and amid growing fears it could be about to issue a further earnings alert.

The parcels delivery boss has been replaced by Petar Cvetkovic, the former chief executive of Target Group, which Rentokil bought in December 2006 for £210m.

A Rentokil spokesman said it was Cooke’s decision to move on. But another source said the parcels boss had been shown the door following last December’s profits warning.

At that time, Rentokil said fourth quarter profits from City Link would be £10m below expectations.

However, sources suggested that continued poor trading at City Link could mean it misses target by as much as £24m.

Rentokil (down 3.1p at 107.8p) declined to comment on the figure.

Any further setbacks with the group’s full-year numbers is likely to heap pressure on Rentokil chief Doug Flynn to stand aside. Flynn was appointed in April 2005, but he is finding it tough to coax a consistent performance out of the hotch-potch of assets, which include pest control, washroom services, tropical plants, and parcels.

Additionally, a source said Rentokil’s human resources director Andy Kemp has signed senior managers to ‘golden handcuff’ deals of guaranteed bonuses of 100pc of salary as the group fears a mass exodus.

Rentokil declined to comment, but sources suggested this was wide of the mark.