3rd Quarter Results

Rentokil Initial PLC
08 November 2007


8 November 2007


                           RENTOKIL INITIAL PLC (RTO)

            TRADING UPDATE FOR THIRD QUARTER ENDED 30 SEPTEMBER 2007


Highlights


•Q3 sales and profits strongly ahead in line with our expectations

    •Revenue up across all divisions: Q3 up 25.3%, year to date up 23.8%

    •Organic growth: Q3 up 4.1%, year to date up 4.3%

    •Adjusted operating profit up 18.1% for Q3, 8.8% year to date

    •Q3 adjusted profit before tax and amortisation up 21.1%, a continuation of 
     positive quarterly trend

•    Profit before income tax from continuing operations £41.0m (2006: £42.8m)


•Continued strong performance from City Link and Asia Pacific, integration 
 programmes on track, benefits becoming visible

•Improved divisional performance from Pest Control and Textiles & Washroom Services

•Investment towards building stronger market positions continues:

    •36 deals for a total consideration of £77 million during the quarter, 
     bringing the total to 86 deals, £173 million year to date

•Guidance for 2007 and 2008 remains unchanged


Note: all comparisons are for continuing operations and at constant exchange
rates except profit before income tax which is a statutory number at actual
exchange rates.


Doug Flynn, Chief Executive of Rentokil Initial plc, said:


'As we indicated at the time of our interim results in August, profit before tax
and amortisation has moved strongly ahead during the quarter and is in line with
our expectations. The group has continued to build on the progress made during
the first half of the year and our outlook for 2007 and 2008 remains unchanged.'



Financial Summary

£million              Third Quarter                       Year to Date
                 Q3 07     Q3 06    change         YTD 07     YTD 06    change
Pro forma 
Continuing Operations(1)
At 2006 constant 
exchange rates(2)

Revenue          566.1     451.9     25.3%        1,640.7    1,325.4      23.8%

Operating
profit
before            66.7      62.4      6.9%          189.4      177.7       6.6%
amortisation
of intangibles(3)

Add back:
one-off            7.1       0.1        -            10.3        5.9      74.6%
items 

Adjusted
operating         73.8      62.5     18.1%          199.7      183.6       8.8%
profit(4)

Share of
profit from
associates         0.6       0.5     20.0%            1.8        1.6      12.5%
(net of tax)

Interest         (15.3)    (14.2)    (7.7%)         (53.8)     (34.7)    (55.0%)


Adjusted
profit            59.1      48.8     21.1%          147.7      150.5      (1.9%)
before income 
tax(4)

Continuing Operations (1)
At actual
exchange rates

Revenue          560.6     449.4     24.7%        1,623.7    1,330.8      22.0%

Operating
profit
before            66.0      62.0      6.5%          187.1      178.8       4.6%
amortisation
of intangibles(5)

Amortisation
of intangible    (10.1)     (5.5)   (83.6%)         (28.4)     (13.6)   (108.8%)
assets (6)

Operating         55.9      56.5     (1.1%)         158.7      165.2      (3.9%)
profit

Share of
profit from
associates         0.5       0.5        -             1.6        1.6         -
(net oftax)

Net interest     (15.4)    (14.2)    (8.5%)         (54.0)     (34.6)    (56.1%)
payable

Profit before
income tax        41.0      42.8     (4.2%)         106.3      132.2     (19.6%)


Operating cash flow                                 150.4      148.5       1.3%


Free cash flow (7)                                   97.2       75.5      28.7%




(1)All figures are for continuing operations and are unaudited. The Electronic
Security division has been treated as discontinued. 

(2)Results at constant exchange rates have been translated at the full year 
average exchange rates for the year ended 31 December 2006. £/$ average rates: 
Q3 2007 1.9930; Q3 2006 1.8177; FY 2006 1.8469. £/€ average rates: Q3 2007 1.4765; 
Q3 2006 1.4593, FY2006 1.4659

(3)Before amortisation of intangible assets (other than computer software and
development costs) of £28.9m (2006: £13.5m) year to date.

(4)Before amortisation of intangible assets (other than computer software and
development costs) of £28.9m (2006: £13.5m) year to date and items of a one-off
nature of £10.3m (2006: £5.9m) year to date. See appendix 4 for further details.

(5)Before amortisation of intangible assets (other than computer software and
development costs) of £28.4m (2006: £13.6m) year to date.

(6)Other than amortisation of computer software and development costs.

(7)Cash flow before acquisitions, disposals, equity dividend payments and special
pension contributions.

Enquiries:

Shareholder/analyst enquiries:
Andrew Macfarlane, Chief Financial Officer/
Katharine Rycroft, Head of Investor Relations          Rentokil Initial plc   020 7866 3055

Media enquiries:
Malcolm Padley, Head of Corporate Communications       Rentokil Initial plc   07788 978199
Kate Holgate / Tom Williams                            Brunswick Group        020 7404 5959

A conference call for analysts and shareholders will be held on 8 November at 9:00am.
To join this call, please dial [phone] (UK), [phone] (France),
[phone] (Hong Kong) quoting the confirmation code: 4272284.
A recording of the call will be available for 14 days on the following numbers: 
UK: [phone], France: [phone], Hong Kong: [phone] 
and US: [phone].  The passcode for all replay numbers is 4272284#.

This announcement contains statements that are, or may be, forward-looking
regarding the group's financial position and results, business strategy, plans
and objectives. Such statements involve risk and uncertainty because they relate
to future events and circumstances and there are accordingly a number of factors
which might cause actual results and performance to differ materially from those
expressed or implied by such statements.


Note: The commentary in the Overview and Divisional Review reflects the
management divisional structure and not the statutory segmental information. All
comparisons are at constant 2006 full year average exchange rates. References to
operating profit are for continuing businesses before amortisation of intangible
assets (other than computer software and development costs) unless otherwise
stated. References to adjusted operating profit and adjusted profit before tax
and amortisation (PBTA) also exclude items of a one-off nature, totalling a net
cost of £10.3 million (2006: £5.9 million) year to date that have impacted the
results. In 2007, they relate to the group's restructuring programmes in the
Pest Control and Textiles and Washroom Services divisions and the City Link/
Target Express integration project and consist of the profit on the sale of a
former business unit head office, consultancy, reorganisation and redundancy
costs. These have been separately identified because they are not considered to
be 'business as usual' items and they have a varying impact on different
businesses and reporting periods. An analysis of these costs by division is
provided in appendix 4.

OVERVIEW

THIRD QUARTER

Performance across the group was in line with plan during the third quarter,
with adjusted profit before tax and amortisation moving strongly ahead as
anticipated.


Revenue for the group as a whole of £566.1 million was 25.3% higher than prior
year, with all divisions reporting increased revenues. The strongest revenue
growth came from City Link, Asia Pacific and Facilities Services. However, Pest
Control and Ambius continued to demonstrate improved performance with revenues
increasing by 9.1% and 10.3% respectively over the corresponding period in 2006.
Excluding the impact of acquisitions and disposals, organic revenue growth in
the third quarter was 4.1%. The contract portfolio grew by 4.8% during the three
months.


Group operating profit (before amortisation of intangibles) of £66.7 million was
6.9% higher than in 2006. Adjusted operating profit (before amortisation of
intangible assets of £10.3 million and one-off items of £7.1 million) was £73.8
million, an increase of 18.1%. Adjusted profit before income tax (again, before
amortisation of intangible assets and one-off costs) moved ahead strongly by
21.1% to £59.1 million. Excluding the estimated benefit of the interest received
on the proceeds from the sale of Electronic Security, adjusted profit before
income tax was up 5.3% in the quarter.


The sale of the Electronic Security division in France remains subject to
regulatory approval by the French authorities.


Further progress was made during the quarter to integrate the businesses
acquired during 2006, most notably Target Express, the City Link franchises and
Pink Healthcare in Australia. Progress on the integration of Target Express is
delivering synergy benefits ahead of original plan and in line with the half
year statement.


We have continued to make solid progress in our Textiles and Washroom division
with profit in the quarter up 4.5% on the prior year. In the UK we announced the
closure of two sites which will allow us to complete the rationalisation of the
branch and processing infrastructure. Textiles and Washrooms was ahead of last
year in the key markets of Germany, Netherlands, France and Belgium. The
business in France has responded well to initiatives to better develop the
washrooms business together with a number of higher margin specialist areas.


Our pest control operations in continental Europe continued the solid progress
made in organic growth and are beginning to convert more of that growth into
profit. In the UK revenue was up on the corresponding quarter, for the first
time since the fourth quarter of 2005. However, more work is needed on service
efficiency before this flows through into increased profitability.


The group continued its programme of investing in building strong market
positions in growth sectors and made 36 acquisitions in the period for a total
consideration of £77 million. The majority of the acquisitions were in Asia
Pacific and Pest Control. Following the acquisition of Ambigest in July,
Rentokil has now become the clear number one pest control company in Spain.


YEAR TO DATE

For the year to date revenue of £1,640.7 million was 23.8% above the same period
last year. Organic revenue growth was 4.3% for the nine months. All divisions
reported increased revenue for the year to date, with City Link, Asia Pacific
and Facilities Services giving the strongest performance. The contract portfolio
increased by 6.9% over the nine-month period. Operating profit (before
amortisation of intangibles) for the group grew by 6.6% to £189.4 million and
adjusted operating profit (before amortisation and one-off items) amounted to
£199.7 million, an increase of 8.8% on prior year.

Adjusted PBTA continues to improve. In Q1 profit fell by 23.2% versus the
corresponding period, reducing to a decline of 4.3% in Q2. In Q3 profit
increased by 21.1% or 5.3% if the interest benefit from the sale of Electronic
Security is excluded.

Year to date adjusted profit before tax and amortisation is down by 1.9% at
£147.7 million.

Our continued focus on customer service and efficiency has resulted in improved
contract retention rates across all our divisions with the exception of
Facilities Services. Within this division retention rates were lower in the
quarter due to the loss of a number of contracts. As a result the group's
annualised retention rate has fallen back slightly for the nine months to 87.6%
from the 88.3% reported at both the half year 2007 and for the nine month period
in 2006.


OUTLOOK

The outlook for the remainder of 2007 is unchanged and we reiterate our guidance
issued at the interim stage for the full year 2007 and 2008.

Excluding the interest benefit from the sale of Electronic Security (of around
£15 million), we continue to expect that profit before tax and amortisation for
the year before one-off items will be in line with 2006, with profits moving
ahead strongly in the second half.

In 2008 full year profit before tax and amortisation is expected to show mid to
high single digit growth over 2007 after excluding the interest benefit from the
sale of Electronic Security (around £15 million in 2007 and £30 million in
2008).



DIVISIONAL REVIEW


Initial Textiles and Washroom Services

£ million                       Third Quarter                Year to Date
                           Q3 07    Q3 06   change      YTD 07   YTD 06  change

At 2006 constant 
exchange rates:

Portfolio - net
movement (appendix 1)        5.4      2.1                 2.8      3.2

Revenue                    150.1    147.3     1.9%      450.7    442.4     1.9%

Operating profit
(before amortisation of
intangible assets(1))       23.9     15.5    54.2%       77.3     68.4    13.0%

One-off items                4.0     11.2                 3.9     13.4

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1))    27.9     26.7     4.5%       81.2     81.8    (0.7%)

(1)Other than computer software and development costs


Revenue for the division as a whole increased by 1.9%, both for the quarter and
the year to date. Excluding the impact of acquisitions and the disposed German
Hospital Services business, organic revenue increased by 3.2% during the
three-month period. Profit in the quarter was up 4.5% on the prior year.
Progress in continental Europe continued to be sound with strong profit
performances in Germany, France, Netherlands and Spain, but the division as a
whole is being held back by the major restructuring programme ongoing in the UK.

The rate of portfolio growth excluding the UK business continues to improve with
current annualised growth in the range of 3 to 4%. Portfolio growth during the
year to date has come largely from existing customers increasing their volumes
with us.

The UK business is showing better portfolio trends, with two out of the three
months of Q3 posting a net gain. However, profits are still under pressure due
to reorganisation of the business. During the quarter we announced the closure
of our plants at Bradford and Chorley which will allow us to move processing to
three new modern sites in Reading, Birmingham and Glasgow. We expect the
transfer of work to be completed by the end of January 2008. One-off costs
associated with the closures and the linked exit from the Wipers business
totalled £2.1 million and were recognised in the quarter, net of the profit on
sale of surplus assets. In Belgium further restructuring costs of £1.4 million
were incurred and the new Lokeren plant is now fully operational.



Rentokil Pest Control

£ million                        Third Quarter               Year to Date
                              Q3 07   Q3 06  change     YTD 07   YTD 06  change

At 2006 constant 
exchange rates:

Portfolio - net
movement (appendix 1)          23.1     2.8               30.1     52.3

Revenue                        82.9    76.0    9.1%      229.5    208.4    10.1%

Operating profit
(before amortisation of
intangible assets(1))          19.7    18.8    4.8%       47.6     50.6    (5.9%)

One-off items                   0.1     0.6                0.7      2.2

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1))       19.8    19.4    2.1%       48.3     52.8    (8.5%)

(1) Other than computer software and development costs


The Pest Control division delivered the expected improvement in performance
during the third quarter with increased revenue of 9.1% compared to the same
period last year. Organic growth for the quarter was 4.3%. Q3 adjusted operating
profit was 2.1% higher than 2006, assisted in part by acquisitions in Spain and
the US. Organically the deterioration in UK profits versus 2006 offset the
strong performances seen in other markets.

In North America the acquisition of Presto-X-Company was completed in July and
initial indications are that trading is in line with expectations.  Excluding
Presto-X, growth in revenue was 6.5% with profit up strongly on the previous
year. Despite a slow start to the peak season as a result of unusually cold
weather at the beginning of the second quarter, weather patterns normalised over
the summer months contributing to strong sales uplift during the quarter.

Continental Europe continued to make good progress with a 10.6% increase in
revenue giving a 4.5% increase in adjusted operating profit. Organic revenue
growth was 4.2% with the remainder delivered by a number of acquisitions in
Spain, Finland and Estonia (the division's first entry into the Baltic region).
 Some of our mid-sized operations have demonstrated particularly strong organic
growth, most notably Spain, Italy, Austria and Portugal.

The UK business continued to make progress with good new business performance
leading to revenue growth of 2.1% against a decline of 1.3% in Q2. Contract
retention rates have further strengthened during the three months to an
annualised rate of 81.6% and the contract portfolio has now grown by 2.2% since
the start of the year. Profit has lagged revenue growth and was down 10.8% on an
adjusted basis in the period although the rate of regression has slowed quarter
by quarter this year. Service productivity declined at the start of the year as
the business adjusted to its new operating model and this continues to be the
main focus for improvement.



Ambius

£ million                          Third Quarter              Year to Date
                               Q3 07   Q3 06  change     YTD 07  YTD 06  change

At 2006 constant 
exchange rates:

Portfolio - net
movement (appendix 1)            1.2     2.0                1.8     2.0

Revenue                         26.7    24.2    10.3%      78.3    73.7     6.2%

Operating profit
(before amortisation of
intangible assets(1))            1.4     1.1    27.3%       4.0     3.2    25.0%

One-off items                      -     0.3                  -     0.3

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1)          1.4     1.4       -        4.0     3.5    14.3%

(1) Other than computer software and development costs


Revenue from Ambius grew by 10.3% during the quarter, of which organic growth
was 2.9%. North America, which accounted for 59% of Ambius's total revenue in
Q3, delivered organic revenue growth of 4.1%. With the exception of France,
continental Europe showed strong organic growth in the period, averaging 5.6%.
Revenue in both the UK and France continued to show decline, but the new
management team recruited earlier in the year is making progress in addressing
performance issues in these markets.


Adjusted operating profit for the quarter was flat with last year as the decline
in the UK offset improvements elsewhere.



City Link

£ million                      Third Quarter                 Year to Date
                          Q3 07    Q3 06   change      YTD 07   YTD 06   Change

At 2006 constant
exchange rates:

Revenue                   107.6    44.6    141.3%      310.6    126.4    145.7%

Operating profit
(before amortisation of
intangible assets(1))      11.4     6.8     67.6%       32.8     20.5     60.0%

One-off items               3.0       -                  5.7        -

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1))   14.4     6.8    111.8%       38.5     20.5     87.8%

(1)Other than computer software and development costs


City Link, our parcels delivery business, continued to make good progress in the
third quarter, reporting revenue over 140% higher year-on-year. However,
comparisons with 2006 are impacted by the acquisitions of Target Express in
November 2006 and the franchise operations during 2006 and 2007. Operating
profit increased by 67.6% in the third quarter and adjusted operating profit by
111.8%. Year-to-date integration costs of £5.7 million have been incurred, of
which £3.0 million was incurred in the quarter.

Network turnover grew by 3.5% during the quarter and 5.6% year to date. City
Link derives approximately 70% of annual revenues from the business to business
(B to B) market and the balance from the business to consumer (B to C) segment
The larger B to B segment has shown good year-on-year growth during the first
three quarters with good levels of retention. The B to C segment softened over
the quarter, a continuation of the trend highlighted at the interim stage.

As part of the integration of Target Express and City Link we have been
reviewing the profitability of our account base. We have a very large number of
small accounts (i.e. those customers typically spending less than £50 per week)
but which represent under 3.5 % of network turnover. These accounts are
unprofitable on current terms and we are taking steps to improve this. The
exercise is likely to reduce 4th quarter revenue by around 1% but will be more
than recouped by the operational cost savings generated in the first half of
2008.


In the third quarter one more franchise has been bought in leaving only one
franchise, representing less than 1% of network turnover, outstanding.

Progress on the integration of Target Express is delivering synergy benefits
ahead of original plan and in line with the half year statement. In September we
merged two depots into one combined site in Swindon as a pilot project. No
further sites will be merged until after the key Christmas trading period in
order to minimise any risk of disruption to service. However, the roll out of
mechanical handling systems, handheld scanners and operational systems (a key
element of integration) is continuing. This will substantially reduce the impact
of change when the physical integration of depots commences in January.



Initial Facilities Services

£ million                       Third Quarter                Year to Date
                           Q3 07    Q3 06   change      YTD 07   YTD 06  change

At 2006 constant 
exchange rates:

Portfolio - net
movement (appendix 1)       31.0     20.4                35.9     30.4

Revenue                    150.1    126.6    18.6%      434.4    380.6    14.1%

Operating profit
(before amortisation of
intangible assets(1))        8.8      6.7    31.3%       27.4     21.7    26.3%

One-off items                  -      1.3                   -      1.4

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1))     8.8      8.0    10.0%       27.4     23.1    18.6%

(1)Other than computer software and development costs

Initial Facilities Services produced a satisfactory performance during the
quarter with revenue up 18.6%, 2.8% of which was organic. Adjusted operating
profit was up 10.0%, largely attributable to the profit on the sale of the small
Netherlands cleaning business.

In the UK cleaning revenue increased by 30.4% largely as a result of increased
contract turnover and portfolio growth coming from the acquisitions of InSitu
and Lancaster. Excluding acquisitions operating profit was flat, reflecting a
tough commercial environment which we are countering with efficiency initiatives
including Smartcleaning, a daytime cleaning concept and RAPID Customer Account
Management, an industry first in the remote management of cleaning contracts. In
UK Catering, as part of active client profitability management, we exited from a
number of unprofitable schools catering contracts during the period but new
contract wins effective from Q4 will offset this loss.

Annualised customer retention rates fell back during the quarter to 78.7%
(against 88.6% in Q2) largely as a result of a number of contract losses.



Rentokil Initial Asia Pacific

£ million                         Third Quarter               Year to Date
                              Q3 07   Q3 06   Change     YTD 07  YTD 06  change

At 2006 constant 
exchange rates:

Portfolio - net
movement (appendix 1)           8.2     1.4                25.5    14.2

Revenue                        41.4    25.9    59.8%      115.2    72.1    59.8%

Operating profit
(before amortisation of
intangible assets(1))           6.8     4.9    38.8%       20.8    14.4    44.4%

One-off items                     -     0.4                   -     1.2

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1))        6.8     5.3    28.3%       20.8    15.6    33.3%

(1)Other than computer software and development costs


Asia Pacific has enjoyed another strong period of growth with revenue and profit
showing significant improvements on last year as a result of good organic growth
across the region and a continued high level of acquisition activity. Revenue
increased by 59.8% over the same period prior year with adjusted operating
profit up 28.3% on 2006. Of this organic growth was 14.1%, boosted by the Hong
Kong Government pest control contract won in April.

In Australia the pest control business continues to show strong organic growth.
In Washrooms the integration of Pink Healthcare is progressing and work to
combine service routes, align service frequencies and introduce new work flows
is progressing.

Since its acquisition in April performance from Rentokil Taiming has been very
encouraging. The business, while still small, is already profitable. Owners of
proprietary and highly effective fogging technology, Rentokil Taiming has been
recommended as the 'preferred supplier' to work closely with the Beijing Pest
Control Association on the Beijing Winter Cockroach Control Campaign ahead of
the Olympics in 2008.

A total of 18 acquisitions were made in the region during the quarter (bringing
the total number of deals completed year to date to 41) for a combined
consideration of £65 million. These were primarily in the areas of pest control,
washrooms and tropical plants. They will contribute annualised revenue of some
£38 million.


Other (South Africa)

£ million                          Third Quarter              Year to Date
                              Q3 07   Q3 06   change     YTD 07  YTD 06  change

At 2006 constant
exchange rates:

Portfolio - net
movement (appendix 1)             -     0.1                 1.8     1.2

Revenue                         7.3     7.3        -       22.0    21.8     0.9%

Operating profit
(before amortisation of         2.7     3.5    (22.9%)      8.1     8.8    (8.0%)
intangible assets (1))

One-off items                     -    (1.0)                  -    (0.8)

Adjusted operating
profit (before one-off
items and amortisation
of intangible assets(1))        2.7     2.5      8.0%       8.1     8.0     1.3%

(1) Other than computer software and development costs


Adjusted operating profit grew by 8.0% in the quarter.  Strong growth in pest
control revenue of 11% year to date has been partially offset by the washrooms
business, which has been broadly flat compared with last year.




FINANCIAL ITEMS


Central Costs

£ million                     Third Quarter                 Year to Date
                          Q3 07   Q3 06   change      YTD 07   YTD 06   Change

At 2006 constant
exchange rates:

Central costs             (8.0)     5.1       -       (28.6)    (9.9)   (188.9%)

One-off items                -    (12.7)                  -    (11.8)

Central costs before
one-off items             (8.0)    (7.6)   (5.3%)     (28.6)   (21.7)    (31.8%)


Year to date adjusted central costs were £6.9 million higher than the prior
year. The principal reasons for the increase are start-up costs of the new UK
Shared Service Centre in Dudley and the continuing build-up of costs associated
with the long-term incentive plan. However, as noted at the half year, the run
rate of central costs is starting to fall as savings and operational
efficiencies come through.


One-off Items

Details of the one-off items incurred in the period for which adjustments have
been made are set out in Appendix 4. These have been separately identified
because they are not considered to be 'business as usual' items and they have a
varying impact on different businesses and reporting periods.

Across the group the net cost of these one-off items for the nine months was
£10.3 million, compared with £5.9 million last year. These were incurred in
completing the UK Pest Control rationalisation, continuing the restructuring of
the UK Washroom business, closure costs of plants in Belgium and in the UK
(Bradford and Chorley), exit from the Wipers business and the integration at
City Link. Our estimate for one-off costs for the year remains at circa £16
million as reported at the half year, but this figure may increase if we are
able to exit the surplus City Link/Target Express depots later this year. This
would have the effect of bringing forward integration costs, planned to be
incurred in 2008, into 2007.


Interest

Net interest payable for the first nine months of 2007 was £53.8 million, a
£19.1 million increase over the prior year. Of the increase approximately £9
million was attributable to higher levels of average debt and £10 million to
effective interest rates which were, on average, approximately 1% higher than in
2006. The proceeds from the sale of Electronic Security, which were received in
early July, reduced interest expense in the quarter by approximately £7.7
million.


Cash Flow and Debt

Operating cash flow for the year to date was £150.4 million compared with £148.5
million in the prior year. However, free cash flow was £97.2 million, £21.7
million better than in 2006, primarily reflecting lower net tax payments
following the receipt of certain refunds in the first half of the year.


In the nine months to 30 September 2007 cash outflow for acquisitions was £170.5
million compared with £151.2 million for the same period in 2006. Net receipts
from disposals (primarily the sale of the Electronic Security businesses in
July) generated £512.8 million. The equivalent figure for 2006 was £148.4
million representing the proceeds from the sale of the Manned Guarding
businesses. At 30 September 2007 net debt was £954.7 million.


Discontinued Businesses

The sale of the UK, Netherlands and US Electronic Security businesses was
completed on 2 July 2007 and the gross proceeds from the sale amounted to
£533.9 million. It remains our intention to sell the French Electronic Security company
and it has been treated as discontinued for the purpose of the third quarter
results.

Appendix 1

ANNUAL CONTRACT PORTFOLIO - CONTINUING BUSINESSES

3 Months to 30 September 2007
£m at constant 2006
exchange rates          1.7.07         New    Terminations           Net    Acquisitions/   30.9.07
                                  Business                     Additions/    Disposals
                                                              Reductions

Textiles & Washroom
Services                 568.9        12.0           (11.2)          4.0           0.6        574.3
Pest Control             221.4         9.2            (8.0)          2.9          19.0        244.5
Ambius                    88.9         1.9            (2.6)          0.7           1.2         90.1

Facilities
Services                 419.3         9.1           (22.3)          4.8          39.4        450.3
Asia Pacific             120.4         4.9            (4.0)          1.3           6.0        128.6

Other                     28.5         0.7            (1.1)          0.4             -         28.5
TOTAL                  1,447.4        37.8           (49.2)         14.1          66.2      1,516.3



9 Months to 30 September 2007
£m at constant
exchange rates          1.7.07         New    Terminations           Net    Acquisitions/   30.9.07
                                  Business                     Additions/    Disposals
                                                              Reductions

Textiles & Washroom
Services                 571.5        40.9           (40.0)         11.5          (9.6)      574.3
Pest Control             214.4        26.3           (24.0)          7.1          20.7       244.5
Ambius                    88.3         5.7            (7.8)          2.7           1.2        90.1

Facilities
Services                 414.4        35.3           (46.8)          8.0          39.4       450.3
Asia Pacific             103.1        24.6           (10.7)          2.1           9.5       128.6

Other                     26.7         2.4            (2.8)          2.2             -        28.5
TOTAL                  1,418.4       135.2          (132.1)         33.6          61.2     1,516.3


Notes

Contract portfolio definition: Customer contracts are usually either 'fixed
price', 'as-used' (based on volume) or mixed contracts. Contract portfolio is
the measure of the annualised value of these customer contracts.

Contract portfolio valuation: The contract portfolio value is typically recorded
as the annual value from the customer contract. However, in some cases -
especially 'as-used' (based on volume) and mixed contracts - estimates are
required in order to derive the contract portfolio value. The key points in
respect of valuation are:

'As-used' contracts: These are more typical in Textiles and Washroom Services,
where elements of the contract are often variable and based on usage. Valuation
is based on historic data (where available) or forecast values.

Income annualisation: In some instances, where for example the underlying
contract systems cannot value portfolio or there is a significant 'as-used'
element, the portfolio valuation is calculated using an invoice annualisation
method.

Inter-company: The contract portfolio figures include an element of
inter-company revenue.

Job work and extras: Many of the contracts within the contract portfolio include
ad hoc and/or repeat job work and extras. These values are excluded from the
contract portfolio.

Rebates: The contract portfolio value is gross of customer rebates. These are
considered as a normal part of trading and are therefore not removed from the
portfolio valuation.

New business: Represents new contractual arrangements in the period, which can
either be new contracts with an existing customer or with a new customer.

Terminations: Represent the cessation of either a specific existing customer
contract or the complete cessation of business with a customer, in the period.


Net additions/reductions: Represents net change to the value of existing
customer contracts in the period as a result of changes (either up or down) in
volume and/or pricing.


Acquisitions: Represents the valuation of customer contracts obtained from
acquisitions made in the period.


Appendix 2

Divisional Analysis (at constant exchange rates)
(based upon the way businesses are managed)

                        3 months to    3 months to    9 months to   9 months to
                       30 September   30 September   30 September  30 September
                             2007           2006           2007            2006
(at 2006 constant              £m             £m             £m              £m
exchange rates)        (unaudited)    (unaudited)    (unaudited)     (unaudited)

Business Analysis

Revenue

Textiles &
Washroom Services           150.1          147.3          450.7           442.4

Pest Control                 82.9           76.0          229.5           208.4

Ambius                       26.7           24.2           78.3            73.7

City Link                   107.6           44.6          310.6           126.4

Facilities
Services                    150.1          126.6          434.4           380.6

Asia Pacific                 41.4           25.9          115.2            72.1

Other                         7.3            7.3           22.0            21.8

Continuing
operations at 2006
constant exchange
rates                       566.1          451.9        1,640.7         1,325.4

Exchange                     (5.5)          (2.5)         (17.0)            5.4
Continuing
operations at
actual exchange
rates                       560.6          449.4        1,623.7         1,330.8

Operating profit*

Textiles &
Washroom Services            23.9           15.5           77.3           68.4

Pest Control                 19.7           18.8           47.6            50.6

Ambius                        1.4            1.1            4.0             3.2

City Link                    11.4            6.8           32.8            20.5

Facilities Services           8.8            6.7           27.4            21.7

Asia Pacific                  6.8            4.9           20.8            14.4

Other                         2.7            3.5            8.1             8.8

Central costs                (8.0)           5.1          (28.6)           (9.9)

Continuing
operations at 2006
constant exchange
rates                        66.7           62.4          189.4           177.7

Exchange                     (0.7)          (0.4)          (2.3)            1.1
Continuing
operations at
actual exchange
rates                        66.0           62.0          187.1           178.8

Adjusted operating profit**

Textiles &
Washroom Services            27.9           26.7           81.2            81.8

Pest Control                 19.8           19.4           48.3            52.8

Ambius                        1.4            1.4            4.0             3.5

City Link                    14.4            6.8           38.5            20.5

Facilities Services            8.8            8.0           27.4            23.1

Asia Pacific                  6.8            5.3           20.8            15.6

Other                         2.7            2.5            8.1             8.0

Central costs                (8.0)          (7.6)         (28.6)         (21.7)

Continuing
operations at 2006
constant exchange
rates                        73.8           62.5          199.7          183.6

Exchange                     (0.7)          (0.4)          (2.3)           1.1
Continuing
operations at
actual exchange
rates                        73.1           62.1          197.4          184.7

* Before amortisation of intangible assets other than computer software and
development costs

** Before amortisation of intangible assets other than computer software and
development costs and items of a one-off nature (see appendix 4 for further
details).



Appendix 3

Divisional Analysis (at actual exchange rates)

(based upon the way businesses are managed)

                        3 months to    3 months to    9 months to   9 months to
                       30 September   30 September   30 September  30 September
                             2007           2006           2007           2006
(at actual exchange            £m             £m             £m             £m
rates)                 (unaudited)    (unaudited)    (unaudited)     (unaudited)

Business Analysis


Revenue

Textiles &
Washroom Services           149.9          146.6          447.9           444.2

Pest Control                 80.4           75.6          222.9           209.8

Ambius                       25.3           24.0           74.8            74.5

City Link                   107.6           44.6          310.6           126.4

Facilities Services         150.0          126.5          433.9           380.8

Asia Pacific                 41.0           25.5          114.1            72.5

Other                         6.4            6.6           19.5            22.6

Continuing
operations at
actual exchange
rates                       560.6          449.4        1,623.7        1,330.8

Operating profit*

Textiles &
Washroom Services            23.8           15.3           76.7           68.7

Pest Control                 19.3           18.9           46.8           50.9

Ambius                        1.3            1.1            3.8            3.3

City Link                    11.4            6.8           32.8           20.5

Facilities Services           8.8            6.7           27.4           21.7

Asia Pacific                  6.9            4.8           20.9           14.5

Other                         2.4            3.3            7.2            9.1

Central costs                (7.9)           5.1          (28.5)          (9.9)

Continuing
operations at
actual exchange
rates                        66.0           62.0          187.1           178.8

Adjusted operating profit**

Textiles &
Washroom Services            27.8           26.5           80.6            82.1

Pest Control                 19.4           19.5           47.5            53.1

Ambius                        1.3            1.4            3.8             3.6

City Link                    14.4            6.8           38.5            20.5

Facilities Services           8.8            8.0           27.4            23.1

Asia Pacific                  6.9            5.2           20.9            15.7

Other                         2.4            2.3            7.2            8.3
 
Central costs                (7.9)          (7.6)         (28.5)          (21.7)

Continuing
operations at
actual exchange
rates                        73.1           62.1          197.4           184.7

* Before amortisation of intangible assets other than computer software and
development costs.

** Before amortisation of intangible assets other than computer software and
development costs and items of a one-off nature (see appendix 4 for further
details).


Appendix 4


One-off Items

                      3 months to    3 months to    9 months to    9 months to
                     30 September   30 September   30 September   30 September
                            2007           2006           2007           2006
                             £m             £m             £m              £m
                     (unaudited)    (unaudited)    (unaudited)    (unaudited)

Textiles &
Washroom Services          (4.0)         (11.2)          (3.9)         (13.4)

Pest Control               (0.1)          (0.6)          (0.7)          (2.2)

Ambius                        -           (0.3)             -           (0.3)

City Link                  (3.0)             -           (5.7)             -

Facilities Services           -           (1.3)             -           (1.4)

Asia Pacific                  -           (0.4)             -           (1.2)

Other                         -            1.0              -            0.8

Central costs                 -           12.7              -           11.8

                           (7.1)          (0.1)         (10.3)          (5.9)


Note: All numbers at both actual and constant exchange rates.



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