Market Report: Rentokil edges up despite concerns over City Link

The Square Mile's patience with Rentokil Initial is running out. The multi-tasking firm – whose services range from rat catching to cleaning bathrooms – has long been dogged by the performance of its City Link business. Yet although boss Alan Brown is now claiming the troubled courier unit is about to see an improvement, that has not been enough for him to escape harsh words from those who think it is time to let it go.

"Talk is cheap, time for action," said Jefferies' Justin Jordan, who attacked "management procrastination in retaining its conglomerate structure" and claimed that the major disappointment from Rentokil's first-quarter results last week was "the lack of clear strategic thinking on exiting City Link."

While the analyst admitted the state of the market was "not ideal" for such a move, he argued that although the unit providing just 12 per cent of revenues, it was proving a "key impediment to non-holders investing in its shares".

He is not the only one concerned by City Link. While Mr Brown used Friday's update to suggest the business would come close to breaking even over the second-half of the year, JP Morgan Cazenove's scribblers were more cautious, claiming "Rentokil often promises a brighter outlook only to disappoint regularly at results".

Nonetheless, Rentokil still edged up 0.35p to 83.5 as Mr Jordan decided it was no longer worth investors selling following the recent fall in the group's share price.

After Friday's sell-off, the FTSE 100 started the day looking fairly steady despite the weekend's political events on the continent. However, by the bell increasing fears over Greece meant the benchmark index was 100.51 points worse off at 5,554.55 – a new low for 2012.

A dive in metal prices meant the miners were generally weak, including ENRC which was knocked back 6p to 514p despite the Kazakh group's announcement a spin-off was one option being considered as a way to boost its value.

Having disappointed the market last week with its announcement it was plugging and abandoning a well off the shore of Ghana, Tullow Oil was moved higher by some rather better news. The explorer shot up 48p to 1,517p after revealing on Monday that it had found more oil in its Ngamia-1 well in Kenya.

So impressive was the discovery Jefferies' Brendan Warn said that, if it wasn't for the group's previous successes, the result would have "company maker potential".

There was rather less positivity around BP, which dropped 7.15p to 415p. With the energy giant's trial over the Gulf of Mexico disaster now not taking place until next year, BarCap's analysts decided to turn sellers, saying they "believe the chance of a swift resolution with the Department of Justice is reduced" while they "increasingly see BP as dead money" on an investment horizon of 12 months.

Invensys may have finished last week on a downer, but punters weren't ready to give up on their takeover hopes around the engineer quite yet.

With bid rumours – which have made a recent return – continuing to swirl, the group moved above 223p before finishing the day 10.5p higher at 213.2p to top the FTSE 250.

Industrial turnaround firm Melrose (12.3p weaker at 412.8p) became the latest name to be suggested by gossips as a potential bidder, although City voices were not convinced by the idea.

Meanwhile, some hopeful traders were wondering whether Invensys' full-year results next week could bring some news on its large pension deficit, seen as a major barrier to possible suitors.

However, not everyone was optimistic while analysts recently have talked down the possibility of the liability being sorted out anytime soon.

A trip round WH Smith doesn't sound like a great way to spend a day, but it pleased Espirito Santo. After getting a tour of one of the retailer's West London shops, the broker said it was "impressed by what we saw" although this was not enough to stop the group - led by Kate Swann, pictured - falling 6.5p to 511.5p.

Down on Aim, explorer Bahamas Petroleum spurted up 1.38p, or 17 per cent, to 9.55p after the country's Prime Minister Hubert Ingraham – who reportedly said he would ban drilling – was ousted in the weekend's election.

Elsewhere, the news that it had suspended work at its Cambay-76H well in India following a number of mechanical mishaps prompted Oilex shares to plummet by 4.75p to 11p.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
The Doctor and Clara have their first real heart to heart since he regenerated in 'Deep Breath'
TV
Arts and Entertainment
Jamie Oliver
filmTV chef Jamie Oliver turned down role in The Hobbit
News
The official police photograph of Dustin Diamond taken after he was arrested in Wisconsin
peopleDownfall of the TV star charged with bar stabbing
Life and Style
tech
PROMOTED VIDEO
Arts and Entertainment
Jeremy Clarkson, left, and Richard Hammond upset the locals in South America
tvReview: Top Gear team flee Patagonia as Christmas special reaches its climax in the style of Butch and Sundance
News
people
Sport
Ashley Barnes of Burnley scores their second goal
footballMan City vs Burnley match report
Arts and Entertainment
Peter Mayhew as Chewbacca alongside Harrison Ford's Han Solo in 'Star Wars'
film
News
i100
Arts and Entertainment
Man of action: Christian Bale stars in Exodus: Gods and Kings
film
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Arts and Entertainment
Tracy Emin's 1998 piece 'My Bed' on display at Christie's
artOne expert claims she did not
Life and Style
Apple showed no sign of losing its talent for product launches with the new, slightly larger iPhone 6 making headlines
techSecurity breaches and overhyped start-ups dominated a year in which very little changed (save the size of your phone)
Arts and Entertainment
Catherine (Sarah Lancashire) in Happy Valley ((C) Red Productions/Ben Blackall)
TV
Arts and Entertainment
Clueless? Locked-door mysteries are the ultimate manifestation of the cerebral detective story
booksAs a new collection of the genre’s best is published, its editor explains the rules of engagement
Sport
Robin van Persie is blocked by Hugo Lloris
footballTottenham vs Manchester United match report
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

Selby Jennings: Quantitative Research | Equity | New York

Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...

Selby Jennings: SVP Model Validation

Not specified: Selby Jennings: SVP Model Validation This top tiered investment...

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

Day In a Page

A timely reminder of the bloody anniversary we all forgot

A timely reminder of the bloody anniversary we all forgot

Who remembers that this week we enter the 150th anniversary year of the end of the American Civil War, asks Robert Fisk
Homeless Veterans appeal: Former soldiers pay their respects to a friend who also served

Homeless Veterans appeal

Former soldiers pay their respects to a friend who also served
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing

Scarred by the bell

The downfall of the TV star charged with bar stabbing
Why 2014 was a year of technological let-downs

Why 2014 was a year of technological let-downs

Security breaches and overhyped start-ups dominated a year in which very little changed (save the size of your phone)
Cuba's golf revolution: But will the revolutionary nation take 'bourgeois' game to its heart?

Will revolutionary Cuba take 'bourgeois' golf to its heart?

Fidel Castro ridiculed the game – but now investment in leisure resort projects is welcome
The Locked Room Mysteries: As a new collection of the genre’s best is published, its editor Otto Penzler explains the rules of engagement

The Locked Room Mysteries

As a new collection of the genre’s best is published, its editor explains the rules of engagement
Amy Adams on playing painter Margaret Keane in Tim Burton's Big Eyes

How I made myself Keane

Amy Adams hadn’t wanted to take the role of artist Margaret Keane, because she’d had enough of playing victims. But then she had a daughter, and saw the painter in a new light
Ed Richards: Parting view of Ofcom chief. . . we hate jokes on the disabled

Parting view of Ofcom chief... we hate jokes on the disabled

Bad language once got TV viewers irate, inciting calls to broadcasting switchboards. But now there is a worse offender, says retiring head of the media watchdog, Ed Richards
A look back at fashion in 2014: Wear in review

Wear in review

A look back at fashion in 2014
Ian Herbert: My 10 hopes for sport in 2015. Might just one of them happen?

Ian Herbert: My 10 hopes for sport in 2015

Might just one of them happen?
War with Isis: The West needs more than a White Knight

The West needs more than a White Knight

Despite billions spent on weapons, the US has not been able to counter Isis's gruesome tactics, says Patrick Cockburn
Return to Helmand: Private Davey Graham recalls the day he was shot by the Taliban

'The day I was shot by the Taliban'

Private Davey Graham was shot five times during an ambush in 2007 - it was the first, controversial photograph to show the dangers our soldiers faced in Helmand province
Revealed: the best and worst airlines for delays

Revealed: the best and worst airlines for delays

Many flyers are failing to claim compensation to which they are entitled, a new survey has found
The stories that defined 2014: From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions

The stories that defined 2014

From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations

Disaster looming? Now you know where to head...

Which British city has become the first to be awarded special 'resilience' status by the UN?