Interim Results

Rentokil Initial PLC
30 August 2000


                             Rentokil Initial plc
                      Interim Statement - 30th June 2000


  Rentokil  initial completes restructuring and invests for strong improvement
  in second half.


1st Half and Full Year Prospects 2000

  Disposals to date 90% complete at £545M against target of £600M plus.

  20% of Rentokil Initial shares bought back for £1Billion.

  Danish Investment Trust Ratin owning 32% of Rentokil Initial acquired.

  Strong cash flow of £119m.

  Interim dividend increased by 8.3%.

  First  half Core Business turnover up 1.9% and profits down by 6.3% on  last
  year,  but sales and marketing investment in first half should pay  back  in
  second  half  with  higher growth in turnover and a  strong  improvement  in
  profits over first half.

New Announcements

  Today  announce  acquisition of second largest USA Tropical  Plants  Company
  for £30M.

  Further   £1.5Billion  available  for  acquisitions  and  share  buy   back.
  Shareholder approval to be sought for further tranche of share buy back.

  Initial  City Link to launch Home Internet Delivery Service on 1st September
  2000.

  Further e-Commerce developments announced including central procurement.

  Launch of new Facilities Management operation.

  Restructuring  of Specialised Services to improve focus and spread  of  best
  practice.

  Directors  appointed  to  (a)  strengthen acquisition  team,  (b)  drive  e-
  Commerce  development, (c) lead new Multi-Service operation, (d)  centralise
  Purchasing to utilise Internet procurement.

Prospects for 2001

  Core  businesses to show accelerating turnover growth together  with  growth
  in profits.


Interim Results

These  results reflect the successful achievement of the strategies  which  we
set in place last year to concentrate on our core activities and invest in and
improve  the sales and marketing in these businesses to drive top line growth.
This  strategy  also involved the sale of non-core businesses,  which  is  now
largely  achieved and the buying back of shares, where we have now spent  some
£1 billion to buy back 20.4% of the share capital.

This  strategy to restructure the capital base and focus on a restricted range
of  services necessitated the disposal of businesses representing a  third  of
the  company's sales and a fifth of profits.  This was coupled  with  a  large
share  buy  back programme and the acquisition of a Danish investment  company
holding  32% of the Company's shares.  Together, these make it very  difficult
to  compare  the  half  year's results for the total  company,  including  the
divested businesses, of turnover of £1,425m, profits of £208m and earnings per
share of 5.44p, with those of last year.

However,  the  successful  completion of this corporate  activity  during  the
second  half  of  2000,  will  leave the company with  sharply  focussed  core
businesses and a strong base for development in 2001 and beyond.  We therefore
concentrate below on the results of the core businesses.

Core Businesses

To  reflect the new concentration, the Company will, in future, report on  its
core businesses by Specialised Services and by Facilities Management.

Specialised Services

The Specialised Services are Hygiene; Security; Pest Control; Tropical Plants;
Conferencing  and Parcels Delivery.  These services have been restructured  to
enhance  the  focus  on  each service and, in particular,  to  aid  the  rapid
identification and spread of best practice from country to country.

Facilities Management

The  Company's  strong  customer base, particularly in the  UK,  in  Cleaning,
Catering,  Hospital and Management Services is to be used as the platform  for
the  development of multi-servicing (selling a range of services to  a  single
customer) as a new Facilities Management sector.

First Half Overview

In  the first half, the core businesses showed turnover of £1,004m, up by 1.9%
over  the  first half last year, with profits of £190m reduced  by  6.3%  (all
percentages are at constant exchange rates).  Businesses were impacted by  the
costs  of  sales and marketing invested to produce future organic growth.  The
results  were also affected by the costs of e-Commerce development  and  those
arising  from  the  disruption of the disposal programme.   Pest  Control  and
Conferencing  produced  good  growth but Hygiene was  affected  by  management
changes  in  the UK and the 35 hour working week rules in France.  UK  Parcels
Delivery profits were reduced by the costs of increasing capacity with the new
central sorting 'hub' and teething problems of new computer systems.   UK  and
US  Facilities Management profits were down because of the loss in the  second
half of last year of some large but low margin contracts.

Specialised Services

The  turnover of these services grew by 4.5% (all percentages are at  constant
exchange rates) to £776m with profits declining by 5.0% to £173m.

Hygiene  -  showed turnover growth of 2.7% to £302m, with UK turnover  falling
3.5%  to £94.6m as a result of net contract terminations; French turnover grew
by  4.2% to £67.3m with Netherlands rising 5.9% to £28.6m and Belgium by  5.8%
to £23.6m.  Germany grew by 2.5% to £20.7m and Australia rose 11.7% to £11.5m.
Margins   were   impacted  by  additional  sales  and  marketing   investment,
restructuring in the UK and additional costs of the new 35 hour  working  week
rules in France, so that profits were down 8.5% at £85.4m.

Security  -  produced turnover growth of 4.5% to £232m.  UK turnover  grew  by
2.7%  to  £113m, USA by 8.2% to £46.0m, Netherlands by 4.8% to £21.8m, Belgium
by  8.7%  to £21.3m and Canada by 2.4% to £17.0m and France up 3.4% to £12.1m.
Profits  declined by 1.8% to £22.4m reflecting additional sales and  marketing
investment.

Pest Control - showed good growth of 5.6% to £95.4m.  UK turnover rose by 1.5%
to £32.8m, Germany by 6.0% to £8.8m, Netherlands by 6.7% to £6.4m, USA by 4.3%
to  £4.9m,  South  Africa  by 10.0% to £4.4m and France  by  15.8%  to  £4.4m.
Profits improved by 7.0% to £33.8m.

Tropical Plants - turnover grew by 3.3% to £44.1m, USA turnover grew  by  1.4%
to £21.0m, UK by 3.1% to £6.6m, France by 7.4% to £2.9m and Australia was flat
at  £2.6m.   Profits declined by 2.3% to £8.5m with higher sales and marketing
investment, particularly in USA.

Conferencing  -  there was strong growth in turnover of 11.8% to  £32.1m  with
profits growing by 13.5% to £12.6m as new investments to enhance three of  our
existing conference centres came on stream.  Our investment programme into new
sites and enhancements to existing centres continues.

Parcels  Delivery  - turnover grew by 8.7% to £70.9m with UK  up  by  4.9%  to
£61.5m  and others by 42.4% to £9.4m (at constant exchange rates).   In  UK  a
major increase in capacity was added with the opening of a new central sorting
'hub'.  This will allow us to take advantage of the huge opportunity for  home
Internet  delivery.   However, the cost of bringing this on  stream,  together
with  teething problems of new computer systems, were largely responsible  for
profits dropping by 30.5% to £9.8m.

Facilities Management

This  business suffered from the termination of a number of large, low  margin
contracts  in the second half of last year which reduced turnover by  6.2%  to
£227m  and,  without a corresponding reduction in the overhead  cost,  profits
fell  by  29.7%  to  £18.0m.  Our more flexible approach to contract  pricing,
which  was  implemented last year, is producing better customer retention  and
new contract gains.

We  are expecting some good growth from the introduction of the new Facilities
Management  proposition which will be headed by Stephen Fretwell as  Director,
Facilities Management.

Geographic Commentary

United Kingdom

UK turnover in core activities fell slightly by 1.1% to £521m and profits fell
by 13.5% to £104m, mainly as a result of the reduction in turnover and profits
from  the  losses of higher value, low margin Facilities Management  contracts
referred  to  above.   Hygiene growth was disappointing with  some  management
changes and Parcels Delivery margins and profits were hit by investment in the
new  hub and computer systems, whilst Pest Control showed some growth  in  new
contracts.   Conferencing showed excellent growth and  Security  and  Tropical
Plants also produced good results.

Continental Europe

Continental  Europe produced good turnover growth of 4.9%  to  £286m  although
margins  were  reduced by investment into sales and marketing to  give  profit
growth  of 1.1% to £55.9m.  There was good growth in Tropical Plants, Security
and  Pest Control but profits in Hygiene were held back by increased costs  in
France from the new 35 hour working week rules.

North America

North  America turnover growth of 2.6% to £122m was held back by the  loss  of
high  value,  low  margin contracts in Facilities Management  which  was  also
reflected  in the 22.8% reduction in profit to £7.8m.  Security produced  good
growth in turnover and profits.

Asia Pacific

Our Asia Pacific businesses mainly comprise our higher margin Hygiene and Pest
Control businesses and these benefited from the improving economies in  South-
East  Asia  with  South  Africa  and Australia  also  producing  good  growth.
Turnover grew by 11.3% to £74.7m and profits by 5.5% to £23.0m.

Non-Core Businesses

In  accordance with our strategy of disposing of non-core businesses, we  have
now  sold nine businesses to raise £545m (£534m in the first half) towards our
target of achieving net proceeds of at least £600m by the end of the year.

Ratin Acquisition

We  have  now  completed the share exchange take-over of Ratin A/S,  a  Danish
investment  company which held 32% of Rentokil Initial shares.   Although  the
total  share  capital  remains  unchanged from this  acquisition  (as  we  are
cancelling  the  shares previously held by Ratin) previous Ratin  shareholders
are  now  direct shareholders in Rentokil Initial which widens the shareholder
base of the company.

Other Acquisitions

To  date  this  year,  we  have made nine acquisitions,  costing  £74m.   This
includes  seven  smaller  acquisitions for £4m as  bolt-ons  to  our  tropical
plants,  pest  control, security and hygiene activities in the  USA,  Belgium,
Hong Kong, Australia and Spain.

Significantly,  we  have  also  acquired Bilger Schwenk,  a  textile  services
business in Germany, for DM121m (£40m) and this, together with our acquisition
of Adrett in 1999, has taken us into the no. 3 position in Hygiene in Germany.

We  also  announce today the acquisition of TruGreen Interior  Plantcare  (see
below).

Share Buy Back

During the first half, we obtained shareholder approval (in two stages) to buy
back  up  to 795m shares (27.75% of the original share capital) and  have  now
bought  back  585m shares (20.4% of the original capital) at a total  cost  of
£1,002m.   We  plan to continue the programme and could extend it  beyond  the
£1.5  billion  originally envisaged.  Shareholder approval is therefore  being
sought to buy back up to a further 15% of the remaining share capital.

Cash Flow

Cash  flow from operating activities before acquisitions, disposals, dividends
and  the  share buy back in the half year was £119m (1999 £134m).   After  the
£1.1m  (net)  spent on acquisitions, £363m cash from disposals, £80.9  on  the
final  dividend and £820m on the share buy back, net debt at the  end  of  the
half year was £526m.

Dividend

An  interim net dividend of 1.30p per share (1999 1.20p), an increase of 8.3%,
will  be  paid  on 3rd November 2000 to shareholders on the register  on  15th
September 2000.

Prospects

Acquisitions

We  announce today the acquisition of TruGreen Interior Plantcare, (the second
largest  tropical plants business in USA) for US$45m (£30m) to add to our  own
existing  business  which  is  already the  largest  in  that  country.   This
acquisition  further  consolidates Rentokil Initial's leadership  of  the  USA
tropical   plant   services  market.   As  well  as  the   excellent   bolt-on
opportunities provided by the integration of twelve overlapping  branches  and
the  divisional  head  office, the enlarged operation  will  enjoy  additional
benefits   arising   from  increased  purchasing  power.    Furthermore,   the
acquisition  provides the strategic benefits of taking Rentokil  Initial  into
twelve  new  cities and these, in turn, will offer opportunities  for  further
bolt-on acquisitions, as well as organic growth.

James   Wilde,  Regional  Managing  Director,  now  concluding  our   disposal
programme,  will  lead  a  drive to give greater  emphasis  to  the  Company's
acquisition  programme which will be concentrated on our specialised  services
in Europe, North America and the major countries of Asia Pacific.

e-Commerce

The  Company  has  developed a number of new Internet based initiatives  which
should  enhance customer services and organic sales, improve our  service  and
administration systems and costs and cut the cost of procurement.

From  1st  September, Initial City Link is launching a special  home  Internet
delivery service to back the growth in B2C trade.

Rosemary  Duckworth  has  been appointed e-Commerce Director  responsible  for
driving developments  across the Company.

We  have  also  appointed Mike Tunnell as Procurement Director  to  centralise
Company procurement world-wide in order to utilise internet procurement.

2000/2001

The  Company expects to achieve at least £600m from its disposal programme  in
2000.  With the cash from these disposals, together with a good cash flow  and
borrowings,  even after the £1,000m spent on the share buy  back  so  far,  we
could spend up to a further £1.5 billion on acquisitions and further share buy
backs.

The  Board  expects that, as a result of sales and marketing  investments  and
improvements, the rate of growth of turnover in core activities  will  improve
in  the second half with profits from these core activities comparable to  the
second half of last year representing a strong improvement in profits over the
first half.

The Board expects that in 2001 core businesses will show accelerating turnover
growth together with growth in profits.

It  is  proposed  to issue a further update on second half  trading  in  early
December.

Issued for:

Rentokil Initial plc, Felcourt, East Grinstead, West Sussex

Press enquiries:

Sir Clive Thompson, Chief Executive
C T Pearce, Finance Director
01342 833022


SEGMENTAL ANALYSIS


                                     6 months to    6 months to       Year to
                                         30 June        30 June   31 December
                                            2000           1999          1999
                                              £m             £m            £m

At June 2000 average rates

Business Analysis

Turnover

Core activities:

 Specialised services:
  Hygiene                                  302.1          294.3         592.2
  Security                                 231.6          221.6         455.4
  Pest Control                              95.4           90.3         186.2
  Tropical Plants                           44.1           42.7          90.1
  Conferencing                              32.1           28.7          60.7
  Parcels Delivery *                        70.9           65.2         152.3

                                           776.2          742.8       1,536.9
 Facilities Management                     227.3          242.4         473.4

Total core activities                    1,003.5          985.2       2,010.3

Non core activities                        421.8          493.9       1,001.9

At June 2000 average rates               1,425.3        1,479.1       3,012.2

Exchange                                       -           21.1          27.0

As reported                              1,425.3        1,500.2       3,039.2


Profit Before Tax

Core activities:

 Specialised services:
  Hygiene                                   85.4          93.3         190.0
  Security                                  22.4          22.8          52.5
  Pest Control                              33.8          31.6          67.3
  Tropical Plants                            8.5           8.7          20.6
  Conferencing                              12.6          11.1          24.0
  Parcels Delivery                           9.8          14.1          31.4

                                           172.5         181.6         385.8
 Facilities Management                      18.0          25.6          51.2
 Interest                                   (0.6)         (4.6)         (7.7)

Total core activities                      189.9         202.6         429.3

Non core activities                         17.6          46.7         106.5
Interest (inc. on sale proceeds)             3.4          (1.0)         (1.9)

Total non core activities                   21.0          45.7         104.6

Interest on share buy back                 (10.4)            -             -
Exceptional items (net - note 4)             7.0             -             -

At June 2000 average rates                 207.5         248.3         533.9
Exchange                                       -           4.7           7.2

As reported                                207.5         253.0         541.1


The  non core businesses, as set out in note 6, are those identified for  sale
and  include  businesses  sold  by 25th August 2000  (shown  as  'discontinued
operations'  in the Consolidated Profit and Loss Account) and also  businesses
which are still in the process of being sold which are included in 'continuing
operations'.

*   Included  in  United Kingdom and Parcels Delivery turnover  is  £26.1m  of
franchisees'  turnover (1999 half year: £26.0m, full year: £56.2m);  the  1999
figures have been restated accordingly.


                                     6 months to    6 months to       Year to
                                         30 June        30 June   31 December
                                            2000           1999          1999
                                              £m             £m            £m

At June 2000 average rates

Geographic Analysis

Turnover

Core activities:
  United Kingdom *                         520.6         526.4       1,067.9
  Continental Europe                       286.2         272.8         554.2
  North America                            122.0         118.9         249.4
  Asia, Pacific & Africa                    74.7          67.1         138.8
                                         1,003.5         985.2       2,010.3
Non core activities:
  United Kingdom                           148.7         158.7         323.2
  Continental Europe                        64.9          59.0         122.1
  North America                            204.9         273.4         549.1
  Asia, Pacific & Africa                     3.3           2.8           7.5
                                           421.8         493.9       1,001.9
Total:
  United Kingdom *                         669.3         685.1       1,391.1
  Continental Europe                       351.1         331.8         676.3
  North America                            326.9         392.3         798.5
  Asia, Pacific & Africa                    78.0          69.9         146.3
  At June 2000 average rates             1,425.3       1,479.1       3,012.2
  Exchange                                     -          21.1          27.0
As reported                              1,425.3       1,500.2       3,039.2

Profit Before Tax

Core activities:
  United Kingdom                           103.8         120.0         253.2
  Continental Europe                        55.9          55.3         115.4
  North America                              7.8          10.1          23.7
  Asia, Pacific & Africa                    23.0          21.8          44.7
  Interest                                  (0.6)         (4.6)         (7.7)
                                           189.9         202.6         429.3
None core activities:
  United Kingdom                             2.7          15.4          32.6
  Continental Europe                         1.9           6.3          19.4
  North America                             12.5          24.4          52.8
  Asia, Pacific & Africa                     0.5           0.6           1.7
  Interest (inc. on sale proceeds)           3.4          (1.0)         (1.9)
                                            21.0          45.7         104.6

Interest on share buy back                 (10.4)            -             -
                                           200.5         248.3         533.9

Total:
  United Kingdom                           106.5         135.4         285.8
  Continental Europe                        57.8          61.6         134.8
  North America                             20.3          34.5          76.5
  Asia, Pacific & Africa                    23.5          22.4          46.4
  Interest                                   2.8          (5.6)         (9.6)
                                           210.9         248.3         533.9

Interest on share buy back                 (10.4)            -             -
Exceptional items (net - note 4)             7.0             -             -
At June 2000 average rates                 207.5         248.3         533.9
Exchange                                       -           4.7           7.2
As reported                                207.5         253.0         541.1


The  non core businesses, as set out in note 6, are those identified for  sale
and  include  businesses  sold  by 25th August 2000  (shown  as  'discontinued
operations'  in the Consolidated Profit and Loss Account) and also  businesses
which are still in the process of being sold which are included in 'continuing
operations'.

*   Included  in  United Kingdom and Parcels Delivery turnover  is  £26.1m  of
franchisees'  turnover (1999 half year: £26.0m, full year: £56.2m);  the  1999
figures have been restated accordingly.



CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                    6 months to          Year
                       6 months to 30 June 2000         30 June   31 December
                     Core   Non Core       Total           1999          1999
                       £m         £m          £m             £m            £m
                                                     (restated)    (restated)

Turnover (including share of
associates and franchisees)

Continuing
operations        1,003.1      145.8     1,148.9        1,500.2       3,039.2
 Acquisitions         0.4          -         0.4              -             -
                  1,003.5      145.8     1,149.3        1,500.2       3,039.2
Discontinued
operations              -      276.0       276.0              -             -
                  1,003.5      421.8     1,425.3        1,500.2       3,039.2
Less: share of
turnover of
 associates         (10.8)         -       (10.8)          (9.4)        (19.9)
turnover of
 franchisees        (26.1)         -       (26.1)         (26.0)        (56.2)

Turnover            966.6      421.8     1,388.4        1,464.8       2,963.1

Operating
expenses           (769.1)    (404.2)   (1,173.3)      (1,207.9)     (2,416.0)

Operating profit
Continuing
 operations before
 exceptional
 items              188.5        1.4       189.9          256.9         546.5
 Exceptional items
  (net - note 4)      7.0          -         7.0              -             -
Continuing
 operations         195.5        1.4       196.9          256.9         546.5
Acquisitions          0.1          -         0.1              -             -
                    195.6        1.4       197.0          256.9         546.5
Discontinued
operations              -       16.2        16.2              -             -
                    195.6       17.6       213.2          256.9         546.5
Share of profit of
associates            1.9          -         1.9            2.0           4.6

Profit on ordinary
activities before
interest            197.5       17.6       215.1          258.9         551.1

Interest payable
(net)                                       (7.6)          (5.9)        (10.0)

Profit on ordinary
activities before
taxation                                   207.5          253.0         541.1

Tax on profit on ordinary
activities                                 (59.1)         (74.4)       (154.5)

Profit on ordinary
activities after
taxation                                   148.4          178.6         386.6

Minority interests                          (0.7)          (0.8)         (1.3)

Profit attributable to
shareholders                               147.7          177.8         385.3

Dividends                                  (29.4)         (34.3)       (117.6)

Profit retained                            118.3          143.5         267.7

Earnings per
1p share                                   5.44p          6.22p        13.47p

Diluted earnings
per 1p share                               5.43p          6.19p        13.43p

Dividends per
1p share                                   1.30p          1.20p         4.11p



CONSOLIDATED BALANCE SHEET

                                     6 months to    6 months to       Year to
                                         30 June        30 June   31 December
                                            2000           1999          1999
                                              £m             £m            £m
                                                     (restated)    (restated)

Fixed assets

Intangible assets                           58.6           47.2          55.5
Tangible assets                            604.4          895.5         885.3
Investments                                328.1           33.1          34.5

                                           991.1          975.8         975.3

Current assets

Stocks                                      49.2           66.8          64.5
Debtors                                    521.8          593.8         591.4
Short term deposits and cash               506.5          224.2         353.7
                                         1,077.5          884.8       1,009.6

Current liabilities due within one year

Creditors                                 (860.2)        (727.2)       (770.0)
Bank and other borrowings                 (299.2)        (210.8)       (154.8)
                                        (1,159.4)        (938.0)       (924.8)

Net current (liabilities)/assets           (81.9)         (53.2)         84.8

Total assets less current
liabilities                                909.2          922.6       1,060.1

Deferred liabilities due after one year

Creditors                                   (8.7)         (11.9)        (14.3)
Bank and other borrowings                 (732.9)        (256.8)       (287.7)
Provisions for liabilities
and charges                               (277.3)        (317.7)       (301.6)

Net (liabilities)/assets                  (109.7)         336.2         456.5

Equity capital and reserves

Called up share capital (note 5)            30.9           28.7          28.7

Share premium account                       36.0           34.3          35.7

Capital redemption reserve
account                                      5.8              -             -
Other reserves                               5.2            7.8           5.2
Profit and loss account                   (364.7)         260.6         382.0

Equity shareholders' funds                (286.8)         331.4         451.6

Equity minority interests                  177.1            4.8           4.9

Capital employed                          (109.7)         336.2         456.5


CONSOLIDATED CASH FLOW STATEMENT

                                     6 months to    6 months to       Year to
                                         30 June        30 June   31 December
                                            2000           1999          1999
                                              £m             £m            £m

Operating activities

Operating profit                           213.2          256.9         546.5
Depreciation charge                         92.3           92.9         191.3
Net movement in working
capital                                    (18.4)         (44.4)        (54.0)
                                           287.1          305.4         683.8

Associates' dividends

Dividends received from
associates                                     -              -           1.0

Interest/Dividends

Interest received                           20.0           10.0          29.9
Interest paid                              (29.6)         (20.8)        (44.2)
Dividends paid to minority
interests                                   (0.5)          (0.6)         (0.8)
                                           (10.1)         (11.4)        (15.1)

Taxation

Tax paid                                   (53.6)         (35.0)       (128.5)

Capital expenditure and financial investment

Purchase of tangible fixed
assets                                    (121.3)        (153.3)       (285.5)
Less: financed by leases                     4.6            7.8          18.1
                                          (116.7)        (145.5)       (267.4)

Sale of tangible fixed
assets                                      12.2           20.6          54.7
                                          (104.5)        (124.9)       (212.7)

Purchase of own shares for employee
share option scheme                         (2.0)          (6.0)         (6.0)
                                          (106.5)        (130.9)       (218.7)

Acquisitions and disposals

Purchase of companies and
businesses                                  (3.5)          (5.8)        (13.0)
Less: net cash acquired                      2.4              -           0.9
                                            (1.1)          (5.8)        (12.1)

Disposal of companies and
businesses                                 534.4              -             -
Less: - loan notes received               (145.6)             -             -
      - net cash in disposed
        businesses                         (13.4)             -             -
      - lease obligations
        settled                            (12.3)             -             -
                                           363.1              -             -
                                           362.0           (5.8)        (12.1)

Equity dividends paid

Dividends paid to shareholders             (80.9)         (75.4)       (109.7)

Net cash inflow

Before use of liquid resources
and financing                              398.0           46.9         200.7

Management of liquid resources

Movement in short term deposits
with banks                                  (1.7)           5.0          (0.4)

Financing

Issue of ordinary share capital              0.3            1.7           3.1
Own shares purchased for share
buy back                                  (820.1)             -             -
Net loan movement                          537.9           25.2          11.3
Finance lease movements                     (7.0)          (6.1)        (13.8)
Net cash (outflow)/inflow
from financing                            (288.9)          20.8           0.6

Net cash

Increase in net cash                       107.4           72.7         200.9

Reconciliation to net debt

Net debt at 1 January                      (88.8)        (294.2)       (294.2)
Cash flows                                 107.4           72.7         200.9
Acquired with subsidiaries                     -              -          (0.9)
Movement in loans                         (537.9)         (25.2)        (11.3)
Movement in deposits                         1.7           (5.0)          0.4
Net debt disposed with
subsidiaries                                 9.5              -             -
Movement in finance leases                   2.4           (1.7)         (4.3)
Exchange adjustments                       (19.9)          10.0          20.6

Closing net debt                          (525.6)        (243.4)        (88.8)



SHAREHOLDERS' FUNDS MOVEMENTS

                                     6 months to    6 months to       Year to
                                         30 June        30 June   31 December
                                            2000           1999          1999
                                              £m             £m            £m

Profit attributable to
shareholders                               147.7          177.8         385.3
Dividends                                  (29.4)         (34.3)       (117.6)
New share capital issued
(note 7)                                     8.3            1.7           3.1
Own shares purchased/cancelled          (1,002.1)             -             -
Write off of Ratin investment              (11.0)             -             -
Goodwill written back on
disposed businesses                        142.8              -             -
Exchange translation
adjustments                                  5.3            2.7          (2.7)
Net movement in shareholders'
funds                                     (738.4)         147.9         268.1

Opening shareholders' funds *              451.6          183.5         183.5

Closing shareholders' funds               (286.8)         331.4         451.6

*   Originally £457.2m before prior year adjustment of £5.6m in respect of FRS
15 (1999: £189.1m).


NOTES

1.    The  profit and loss account and cash flow statement for the half  years
      to  30th June 1999 and 2000 and for the year to 31st December 1999  have
      been  translated at average rates of exchange for the relevant  periods.
      Balance sheets have been translated at period end rates.
      
2.    The  turnover and profit before tax for the half year to 30th June 2000,
      if  translated at average exchange rates for the half year to 30th  June
      1999, would have been £24.8m higher and £5.6m higher respectively.
      
3.    From   the   dates  of  acquisition  to  30th  June  2000,  acquisitions
      contributed  £0.4m  to  turnover, £0.1m to profit  before  interest  and
      £0.1m to profit after interest.
      
4.    Exceptional items comprise:                                       £m
      
        Release of provision held against tax and legal actions
        against an overseas subsidiary                                19.8
      
        Write down of investment in own shares held by an ESOP trust (12.8)
      
                                                                       7.0
      
5.    Called up share capital comprises:                                £m
      
      Shares issued on acquisition of Ratin A/S                        8.0
      Ordinary shares                                                 22.9
      
                                                                      30.9
      
6.    In  August 1999, the company announced its intention to dispose  of  its
      non  core  activities.  At 29th August 2000, the  date  on  which  these
      financial statements were approved by the Board, the following non  core
      businesses had been sold and are treated as discontinued businesses:
      
      US Distribution                            US Personnel
      US Plant hire                              International containers
      UK Portable accommodation                  UK Cranes (part)
      UK and Scandinavian Timber preserving      European Distribution (part)
      UK Aerial platforms
      
      Further  non core businesses which are in the process of being sold  are
      included in continuing operations (under FRS 3) but are included as  non
      core businesses in the Segmental Analysis. These are:
      
      UK Personnel                               UK Offshore cranes
      UK Distribution                            UK Scaffolding
      European Distribution (remaining)          UK Cranes (remaining)
      
      The  proceeds of the sales completed by 30th June 2000 amounted to £534m
      with  costs  of disposal of £10.0m, and the net assets of the businesses
      sold  (at  the dates of sale) were £381m.  Included in the proceeds  are
      £134m   of   convertible   loan   notes  and   £11.6m   other   deferred
      consideration.   The difference between the net sale  proceeds  and  the
      net  assets disposed of, together with the goodwill which has previously
      been  written off against reserves (in particular, part of the  goodwill
      arising  on the acquisition of BET plc in 1996) have been taken  through
      the  profit  and  loss  account, but as the  figures  included  in  this
      interim  statement are provisional and are subject to  change  following
      the  finalisation of the completion balance sheets, no  profit  or  loss
      has been taken in these accounts.
      
7.    The  Company's recommended offer for Ratin A/S, a publicly listed Danish
      company,  which  holds 919 million shares in Rentokil Initial  plc,  was
      declared   wholly  unconditional  on  30th  May  2000  and,   with   the
      implementation  of compulsory acquisition procedures,  the  company  now
      owns 100% of Ratin's share capital.
      
      Following  the  passing  of  a special resolution  at  an  extraordinary
      general meeting of the company on 25th August 2000, the ordinary  shares
      in  the  company  held by Ratin are to be acquired and  cancelled.   The
      value  of  the shares acquired and not represented by minority interests
      at  the  balance  sheet  date (£1,184m) has  been  written  off  against
      shareholders'  funds, fully compensated by the issue of new  shares  and
      these  shares  have  been disregarded in calculating  the  earnings  per
      share.   The  value  of the remaining shares representing  the  minority
      interests,  which were acquired subsequent to the date  of  the  balance
      sheet  (£172m),  is  included in Fixed Assets Investments  and  Minority
      Interests on the balance sheet.
      
8.    As  of  30th June 2000, the company had purchased 585m of its own shares
      in  the market (representing 20.4% of the company's issued share capital
      at  1st  March 2000) under the authorities given by shareholders at  the
      extraordinary  general  meetings held on 27th March  2000  and  9th  May
      2000.   These  shares  have  been (or were being)  cancelled  and  their
      nominal  value transferred to the Capital Redemption Reserve account  on
      the  balance sheet; they have been excluded in calculating the  weighted
      average  number of shares in issue after the date of their  purchase  by
      the company.
      
9.    Goodwill  represents the excess of the fair value of  the  consideration
      paid  over  the aggregate of the fair values of the net tangible  assets
      acquired.
      
      Goodwill  in  respect  of acquisitions made since 1st  January  1998  is
      shown  as  an asset and (in accordance with FRS 10) each acquisition  is
      assessed to determine the useful economic life of the business  and  the
      goodwill.  Normally, it is considered that the goodwill relating to  the
      acquisitions  made by the company is an inseparable part  of  the  total
      value  of  the relevant business and that such businesses,  if  properly
      managed,  should  grow  in value over the years and  hence  neither  the
      value  of the business nor the goodwill have a measurable economic life.
      Where  it  is considered that the value of the business or its  goodwill
      do  have  a  measurable economic life, the goodwill  will  be  amortised
      through  the  profit and loss account by equal annual  instalments  over
      such  useful economic life.  The potential economic lives of  businesses
      and goodwill are reviewed annually and revised where appropriate.
      
      Where  the useful economic life does not exceed 20 years, goodwill  will
      be  subject  to  an  impairment  review  at  the  end  of  the  year  of
      acquisition  and  at  any other time if the directors  believe  that  an
      impairment may have occurred.  Where the goodwill is assigned  a  useful
      economic  life  which  is in excess of 20 years or  is  indefinite,  the
      value  of  the  businesses  and  goodwill are  assessed  for  impairment
      against  carrying values on an annual basis in accordance with  FRS  11.
      Any  impairment  will be charged to the profit and loss account  in  the
      period in which it arises.
      
      The  Directors have reviewed the acquisitions made in the six months  to
      30th  June  2000  and determined that these businesses  have  indefinite
      useful lives and hence the goodwill is not being amortised.
      
10.   Full  year  1999  figures  are taken from the accounts  filed  with  the
      Registrar  of  Companies.  The results for the six months to  30th  June
      2000 and 30th June 1999 have not been audited but have been reviewed  by
      PricewaterhouseCoopers, the company's auditors.
      
11.   The  company has adopted Financial Reporting Standard 15 (Tangible Fixed
      Assets)  in  the  period and assets which had previously  been  revalued
      have  been  restated at historical cost  as a prior year adjustment  and
      the  prior period figures have been restated accordingly.  The June 1999
      balance sheet has also been restated to reflect the adoption of  FRS  12
      as  at 31st December 1999 with £61.8m of self insurance provisions being
      transferred from creditors to provisions.
      
12.   Turnover  for the period includes £10.8m (1999: £9.4m) and profit  £1.9m
      (1999:  £2.0m)  in  respect of the group's share of  associates  (Nippon
      Calmic Limited and Rezayat Sparrow Arabian Crane Hire Co Ltd).
      
13.   Tax  comprises  UK Corporation Tax (less double taxation relief)  £33.2m
      (1999: £41.1m) and overseas tax £25.9m (1999: £33.3m).
      
14.   The   financial  information  in  this  statement  does  not  constitute
      statutory  accounts  within the meaning of s.240 of  the  Companies  Act
      1985.
      
15.   Copies  of  the  interim report will be dispatched to  shareholders  and
      will  also  be  available  from  the  company's  registered  office   at
      Felcourt, East Grinstead, West Sussex, RH19 2JY.
      


INDEPENDENT REVIEW REPORT TO RENTOKIL INITIAL PLC

Introduction

We have been instructed by the company to review the financial information and
we have read the other information contained in the interim report for any
apparent misstatements or material inconsistencies with the financial
information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reason for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions.  It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2000.


PricewaterhouseCoopers
Chartered Accountants and
Registered Auditors
1 Embankment Place
London
WC2N 6NN                                            29th August 2000