Rentokil warns on profit

13-12-2007

Rentokil warns on profit
Shares in services group Rentokil fell in early trading after the company warned its fourth-quarter profit was likely to be lower than expected.

In a trading update the company confirmed a disappointing performance by its overnight express courier business City Link was to blame for the development.

Rentokil, which was founded as a pest control business, said an expected increase in parcel delivery volumes in the run up to Christmas had been smaller than anticipated.

"As a result fourth quarter profits from City Link are likely to be up to £10 million below our expectations," the company confirmed.

"This will have a similar impact on the results for the group as a whole."

Rentokil repeated its assertion the slowdown in parcel delivery volumes to consumers was a "direct result of weaker consumer spending in a challenging retail environment".

In its third-quarter update last month the company had already confirmed slower growth for City Link's business-to-consumer operations, despite business-to-business trading remaining strong.

The company, which became Britain's second-biggest parcel deliverer last year following the acquisition of Target Express Holdings Ltd, said at the time it believed the slower growth was part of an industry-wide trend.

Meanwhile, Rentokil confirmed the takeover was continuing to deliver savings benefits ahead of plan.

The company said trading across its other divisions remains in line with expectations.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure