Rentokil finally catches the City Link rat
Saturday 05 May 2012
Alan Brown, the chief executive of Rentokil, yesterday claimed the long wait for a turnaround in the disappointing performance of its parcels business City Link is over.
"We expect a significant improvement in year-on-year financial performance [at City Link] in the second half," he said.
Not quite yet, though: the royal ratcatcher's small 1.1 per cent rise in adjusted, pre-tax profit to £26.3m for the three months to April was again hamstrung by still-widening losses at City Link, up 19 per cent to £12.7m for the quarter.
Mr Brown blames City Link's problems on productivity: unlike rivals, the firm pays its subcontracted staff for time spent, rather than deliveries made.
Last year, he appointed a new boss and finance director of City Link from rival Parcelforce, and the Rentokil boss said: "Performance improved through the quarter as the new management team gained traction."
The City, however, wasn't as easily impressed: the shares slipped 4 per cent, or 3.5p, to 83.1p. That's despite Rentokil's largest business, textiles and hygiene, posting an 8 per cent rise in operating profit, thanks mainly to strong trading in France, Germany and Benelux.
Elsewhere, more pest-control work in the UK and north America wasn't enough to stop a 4.4 per cent decline in operating profit at the division to £18.9m.
Rentokil said that the decline stems from slow business in southern Europe.
Simon Calder looks at communities fighting back against the poachers
Arsenal 1 Everton 1: Substitute equalises with six minutes to go
booksGeese, gorillas, grandads... and growing up
Nelson Mandela: 11 inspirational quotes to live your life by
Queen to miss Nelson Mandela funeral over security and long-haul flight concerns
'Never a good time to increase MPs' pay': Jack Straw defends politicians' 11% pay rise in face of public outrage
10 stone five-year-old taken into care
Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- 1 Hundreds arrested as Canadian police smash worldwide paedophile ring
- 2 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 Mass murder in the Middle East is funded by our friends the Saudis
- 5 Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- < Previous
- Next >
iJobs Money & Business
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...
£80000 - £100000 per annum + benefits + bonus: Harrington Starr: Project Manag...
£50000 - £60000 per annum + benefits + bonus: Harrington Starr: Business Analy...