Rentokil Initial unveils rise in profits despite City Link loss – UPDATE

Rentokil Initial Quote more

Price: 120.70

Chg: 0.70

Chg %: 0.58%

Date: 12:34

FTSE 250 Quote

Price: 16,067.41 Chg: 95.13 Chg %: 0.59% Date: 12:29

Pest control and hygiene giant Rentokil Initial revealed robust 2012 results on Friday, beating analyst expectations, causing shares to jump as much as 11 per cent, though analysts showed concern with the ongoing struggles with its City Link division.

Adjusted pre-tax profits came to 191m, a 10.1% year-on-year rise, driven in part by 59m of cost savings following a restructuring of the companys textiles and hygiene arm in France and its pest control division across a number of countries. Analysts were expecting a figure closer to 186m.

However, its parcel delivery arm, City Link, took the spotlight away from an otherwise strong year, as it posted a $26.4m operating loss. The division has weighed on the firm since 2007 due to high operating costs and a competitive market.

Link:
Rentokil Initial unveils rise in profits despite City Link loss - UPDATE