Q1 2008 Trading Update
Rentokil Initial PLC
02 May 2008
2 May 2008
RENTOKIL INITIAL PLC (RTO)
FIRST QUARTER TRADING UPDATE FOR THREE MONTHS ENDED 31 MARCH 2008
Headline financials
• As stated on 21 April 2008, continuing problems within City Link have
impacted group financial performance
• Revenue up 6.6% to £553.6 million (2007: £519.1 million)*
• Q1 adjusted operating profit and adjusted profit before income tax
£28.7 million (2007: £54.0 million) and £14.6 million (2007: £35.4 million)
respectively*
• City Link Q1 adjusted operating loss of £15.4 million on revenue down
8.0% (adjusted for lower trading days)
• Excluding City Link, revenue up 8.0% and adjusted operating profit up 0.7%*
• Profit before income tax from continuing operations £5.0 million
(2007: £23.6 million)
*at constant exchange rates
Operational developments
• New City Link management team has made some progress in addressing
operational problems:
o Service levels showing early signs of improvement
o Development of seven-point plan to improve customer service, develop
integrated information systems and optimise hub and depot network
• Strong performance from Pest Control particularly continental Europe
Alan Brown, Chief Executive Officer of Rentokil Initial plc, said:
'A number of our businesses are making good progress in growing the top line,
developing customer portfolios and reducing termination rates. However, we have
struggled to implement major change programmes which has affected our ability to
turn top line growth into profit.
'We have outlined our plan to restore City Link to operational and financial
health but returning the business to its former levels of profitability is
likely to take some time. The group agenda is now to focus on operational
excellence and efficiency, with improvements in customer service being the
primary indicator of success in the short-term.
'Our current annual dividend totalling 7.38 pence per share for 2007 is not
supportable based on 2008 performance. The board will review the 2008 dividend
payout at the time of the interim results in August. There is no change to the
final recommended dividend for 2007.'
Financial Summary
First Quarter
£million
2008 2007 change
Pro forma Continuing Operations(1)
At 2007 constant exchange rates(2)
Revenue 553.6 519.1 6.6%
Operating profit before amortisation of intangible assets(3) 27.2 51.7 (47.4%)
Add back: one-off items 1.5 2.3 34.8%
Adjusted operating profit(4) 28.7 54.0 (46.9%)
Share of profit from associates (net of tax) 0.6 0.5 20.0%
Interest (14.7) (19.1) 23.0%
Adjusted profit before income tax(4) 14.6 35.4 (58.8%)
Continuing Operations(1)
At actual exchange rates
Revenue 578.1 515.3 12.2%
Operating profit before amortisation of intangible assets(5) 31.1 50.8 (38.8%)
Amortisation of intangible assets(6) (12.1) (8.6) (40.7%)
Operating profit 19.0 42.2 (55.0%)
Share of profit from associates (net of tax) 0.7 0.5 40.0%
Net interest payable (14.7) (19.1) 23.0%
Profit before income tax 5.0 23.6 (78.8%)
Operating cash flow 17.0 52.0 (67.3%)
Free cash flow(7) (29.6) 26.2 -
(1) All figures are for continuing operations and are unaudited.
(2) Results at constant exchange rates have been translated at the full year
average exchange rates for the year ended 31 December 2007. £/$ average
rates: Q1 2008 1.9859; Q1 2007 1.9623; FY 2007 2.0038. £/€ average rates:
Q1 2008 1.3159; Q1 2007 1.4869; FY 2007 1.4586.
(3) Before amortisation of intangible assets (other than computer software and
development costs) of £11.5m (2007: £8.6m).
(4) Before amortisation of intangible assets (other than computer software and
development costs) of £11.5m (2007: £8.6m) and items of a one-off nature of
£1.5m (2007: £2.3m). See appendix 4 for further details.
(5) Before amortisation of intangible assets (other than computer software and
development costs) of £12.1m (2007: £8.6m).
(6) Other than computer software and development costs.
(7) Cash flow before acquisitions, disposals, equity dividend payments and
special pension contribution.
For further information
Shareholder/analyst enquiries:
Andrew Macfarlane, Chief Financial Officer Rentokil Initial plc 020 7592 2700
Katharine Rycroft, Head of Investor Relations 07811 270734
Media enquiries:
Malcolm Padley, Head of Corporate Communications Rentokil Initial plc 07788 978 199
Kate Holgate, Tom Williams Brunswick Group 020 7404 5959
A conference call for analysts and shareholders will be held today at 09.00am.
To join this call, please dial +44 (0)20 7806 1957 (UK), +33(0) 1 70 99 43 00
(France), +852 3002 1355 (Hong Kong), and +1 718 354 1389 (US). A recording of
the call will be available for 14 days on the following numbers: UK: +44 (0)20
7806 1970, France: +33 (0)1 71 23 02 48, Hong Kong: +852 3002 1607 and US: +1
718 354 1112.
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.
Basis of preparation
In all cases, references to operating profit are for continuing businesses
before amortisation of intangible assets (other than computer software and
development costs). References to adjusted operating profit and adjusted profit
before income tax also exclude items of a one-off nature, totalling a net cost
of £1.5 million (2007: £2.3 million) that have impacted the results for the
period. They relate to the group's restructuring programme and consist of
consultancy, redundancy and reorganisation costs and City Link integration
costs. They have been separately identified as they are not considered to be '
business as usual' expenses and have a varying impact on different businesses
and reporting periods. An analysis of these costs by division is provided in
appendix 4. This commentary reflects the management divisional structure and not
the statutory segmental information. All comparisons are at constant 2007 full
year average exchange rates.
In 2008 certain shared service, IT and other costs that were treated as central
costs in 2007 are being charged to the businesses that benefit from them. In
the first quarter such costs totalled £1.7 million and have principally been
recharged to Textiles and Washroom Services (£0.4 million), Pest Control (£0.7
million), Facilities Services (£0.5 million) and Asia Pacific (£0.1 million).
Comparative figures have not been restated.
QUARTERLY REVIEW
First quarter revenue for the group as a whole of £553.6 million was 6.6% higher
than prior year with all divisions reporting increased revenues. Each division
grew revenues by over 5% with the exception of City Link and Textiles and
Washroom Services. As indicated in the trading update of 21 April, network
revenue within City Link was 11% lower than Q1 2007 and, adjusted for lower
trading days in 2008, revenue was down 8%. Excluding the impact of acquisitions
and disposals and absent City Link, organic growth in the quarter was 2.6%.
The quarterly portfolio gain was £24.1 million, equivalent to an annualised
growth rate of 6.3%. It was made up of new business wins of £47.2 million,
acquisitions/disposals of £4.4 million and net additions/reductions of £19.2
million offset by terminations of £46.7 million, implying an annualised customer
retention rate of 87.8% (2007: 88.4%).
Group operating profit (before amortisation of intangible assets of £11.5
million) of £27.2 million was 47.4% lower than in 2007 and was adversely
affected by City Link's loss of £16.9 million (2007: £9.3 million
profit) in the period. Adjusted operating profit (before amortisation of
intangibles) of £28.7 million showed a decrease of 46.9% year-on-year; excluding
City Link, the balance of the group's profit at this level grew by 0.7%.
Adjusted profit before income tax (again, before amortisation of intangible
assets) fell 58.8% to £14.6 million.
The group's revenue and profit at actual rates of exchange benefited from the
weakness of Sterling compared to 2007. First quarter revenue growth at actual
exchange rates was 12.2% (6.6% at constant rates) and the decline in adjusted
operating profit was 38.6% (46.9% at constant rates).
Initial Textiles and Washroom Services
£ million First Quarter
2008 2007 Change
At 2007 constant exchange rates:
Portfolio - net movement (appendix 1) 9.2 1.2
Revenue 151.5 150.4 0.7%
Operating profit (before amortisation of intangible assets 1 and 2) 24.6 24.2 1.7%
One-off items - 1.0 -
Adjusted operating profit (before one-off items and amortisation of intangible 24.6 25.2 (2.4%)
assets1 and 2)
1 Other than computer software and development costs
2 After charging additional central costs of £0.4 million in 2008
Headline revenue for the division was up 0.7%, held back by the disposal of the
UK Wipers business and German Hospital Services business in the second half of
last year. Excluding Wipers and German Hospital Services, the division grew
revenue by 3.2% (2.6% organically). Growth in continental Europe was 4.8%,
offset by a decline of 7.0% in the UK washroom business. Adjusted operating
profit of £24.6 million was down 2.4% on 2007, attributable to three principal
factors: additional costs recharged from the group centre (£0.4 million); lower
UK washroom profit (£0.2 million); and higher divisional costs (£0.5 million)
to allow the business to investigate efficiency and procurement opportunities in
its logistics and supply chain. Profit from the continental European business
was up 2.9%.
Net portfolio gain for the quarter was strong with growth of 1.6%. This can be
attributed both to good levels of retention, currently at 90.7% from 89.7% this
time last year, and a slightly easier pricing environment in our major markets.
The physical infrastructure changes within the UK washroom business are complete
following the closure in Q4 of our plants at Bradford and Chorley and the
opening of three new towel and mat laundries in Reading, Birmingham and Glasgow,
all of which are fully operational. In our 2007 first quarter trading statement
we reported that the business continued to experience higher than acceptable
termination rates. It is therefore encouraging that despite the physical
disruption that has been incurred, the business grew its portfolio in the first
quarter of 2008. The focus for the remainder of the year is firmly on improving
customer service and sales.
Rentokil Pest Control
£ million First Quarter
2008 2007 change
At 2007 constant exchange rates:
Portfolio - net movement (appendix 1) 3.5 4.2
Revenue 76.7 65.8 16.6%
Operating profit (before amortisation of intangible assets 1 and 2) 11.4 10.2 11.8%
One-off items - 0.4 -
Adjusted operating profit (before one-off items and amortisation of intangible 11.4 10.6 7.5%
assets1 and 2)
1 Other than computer software and development costs
2 After charging additional central costs of £0.7 million in 2008
The Pest Control division continued to perform strongly in the first quarter of
2008 delivering revenue growth of 16.6% and adjusted operating profit growth of
7.5% (or 14.2% if the additional central cost recharges are excluded). Organic
revenue growth was 7.3%. The profit performance represents a significant
improvement on the first quarter of 2007 which incurred a full quarter of
seasonal losses at the US business, JC Ehrlich. Work to improve off-season
productivity led to a year-on-year reduction in US losses of £1.2 million.
Across continental Europe, profit grew 9.6% on revenue up 14.4% (6.6% organic).
Revenue growth was strong across the territory aided by particularly strong
performances in France, Spain, Portugal and the Netherlands.
The UK pest control business generated its best Q1 sales growth in five years.
Revenue increased by 14.5%, the highest organic growth rate across the division,
as a result of a sustained drive on sales, improvements in customer retention
and contract portfolio growth. Returning this business to profit growth in
2008 remains a priority for the Pest Control division.
North America grew revenue by 24.8% in Q1 and includes the contribution from
Presto-X, acquired in July 2007. Organic growth was 3.4%. There are no signs
at present that the business is being affected by the US economic climate, but
we are keeping this under careful review. A focus on off-season productivity
has significantly mitigated the impact of the traditional first quarter losses
which were reduced by £1.2 million. The business was forced to exit Copesan, a
US organisation of independent regional pest control companies, in January as a
result of our increased geographic presence. The exit from Copesan allows us
greater freedom to develop the business in the future but will have a short-term
impact, reducing 2008 revenue by an estimated £3 million.
Ambius
£ million First Quarter
2008 2007 Change
At 2007 constant exchange rates:
Portfolio - net movement (appendix 1) 2.1 0.5
Revenue 25.6 24.3 5.3%
Operating profit (before amortisation of intangible assets 1) 0.9 0.4 125.0%
1 Other than computer software and development costs
Ambius revenue was up 5.3% year-on-year (2.5% organic). This result was a
combination of strong portfolio growth of 2.4% in the quarter and good job
sales. Profit was up 125.0% on last year, but benefited from the non-recurrence
of Ambius re-branding costs amounting to £0.5 million in the first quarter of
2007.
Europe has continued to perform well during the period. Further, the new
management team in place in the UK business has made progress in addressing
performance issues and for the first time in two years has achieved organic
portfolio growth. Retention has improved from 85.8% in Q4 2007 to 88.9% and the
business is making good progress towards its goal of quarter-on-quarter profit
growth at the end of this year.
We continue to be cautious about revenue and profit growth in North America as
the economic downturn is showing signs of softening portfolio and job sales
growth across the region. Revenue growth was 1.2% in the first quarter, but
good cost control enabled a small increase in profit.
Sales in new brand extension services, including ambient scenting and fresh
fruit delivery, accounted for 15.9% of portfolio sales in Q1 and continue to aim
to offset any downturn in trading.
City Link
£ million First Quarter
2008 2007 Change
At 2007 constant exchange rates:
Revenue 95.2 94.5 0.7%
Operating profit (before amortisation of intangible assets 1) (16.9) 9.3 -
Integration costs 1.5 0.9 -
Adjusted operating profit (before integration costs and amortisation of (15.4) 10.2 -
intangible assets 1)
1 Other than computer software and development costs
The new senior management team put in place at City Link over the past two
months has begun to address the operational problems within the business. This
team, consisting largely of individuals experienced in running non-franchise
networks, has already enjoyed some success in improving service levels and in
re-establishing relationships with customers.
However, the declining performance trend of the fourth quarter 2007 has
continued into Q1 2008. This is a result of the difficulties experienced in
integrating the City Link franchisees and the Target Express acquisition with
the core City Link business. This has led to a greater than anticipated
operating loss (before amortisation of intangible assets) of £16.9 million, of
which £10 million is attributable to non-recurring costs. In accordance with our
policy (see basis of preparation) £1.5 million of these costs, relating
primarily to depot integration, have been treated as one-off items. The adjusted
operating loss for the quarter was therefore £15.4 million (2007: profit £10.2
million).
Network revenue was 11% lower than Q1 2007. Adjusted for lower trading days in
2008, revenue was down 8.0%. Revenue from the top 50 customers, which accounts
for 26% of total revenue, has grown year on year. The loss of revenue is
primarily from small accounts, which have been particularly adversely affected
by the buy-back of franchisees and the problems experienced as a result of the
attempted integration of Target Express and City Link.
Headline costs have risen sharply from £84.3 million in Q1 2007 to £110.6
million (adjusted to exclude one-off items of £1.5 million) in Q1 2008.
Approximately £13 million of this increase is attributable to the cost bases of
the acquired franchisees (offset by the acquired revenue). A further £8.5
million is attributable to non-recurring costs (which were not restructuring
costs and do not meet our definition of one-off items) and the balance of £5
million to underlying cost increases.
As announced on 21 April, in light of first quarter trading and the current
trends in revenue and costs, it now appears likely that the division will incur
a significant full year loss.
Although City Link's new management team has made progress in sales generation
and improved account management, the team has a number of challenges to address
and will work to a seven-point plan which will involve:
• Re-instituting a service orientated culture by ensuring customer services
are in close proximity to our customers;
• Establishing operating systems that enable information to be shared across
the combined network, reliably and securely;
• Establishing control systems and processes that enable transparency of
information and enable central control of costs, where appropriate, rather
than the dispersal of costs and controls across each of the 94 depots;
• Reviewing the size, number and location of hubs and depots;
• Right-sizing resources to match the cost base to current levels of
revenue;
• Considering how to capitalise on the growth opportunities in the parcels
market; in particular the growth of B to C driven by Internet purchases; and
• Ensuring that the organisation has the capability to drive this agenda
efficiently and effectively.
Initial Facilities Services
£ million First Quarter
2008 2007 change
At 2007 constant exchange rates:
Portfolio - net movement (appendix 1) 5.2 0.4
Revenue 153.2 143.2 7.0%
Operating profit (before amortisation of intangible assets 1 and 2) 8.6 9.8 (12.2%)
1 Other than computer software and development costs
2 After charging additional central costs of £0.5 million in 2008
Revenue from Initial Facilities Services increased 7.0% primarily driven by
increased contract turnover from the acquisition of Lancaster in 2007 offset by
the sale of the Netherlands cleaning business last year. Organic revenue growth
was 0.4%. Operating profit declined 12.2% year-on-year principally as a result
of the re-allocation of central charges (£0.5 million), and asset write-offs in
Spain where the back office of the division's cleaning business is being
reorganised (£0.5 million).
In UK Cleaning, market conditions remain tough particularly in the retail and
leisure sectors. First quarter revenue (excluding Lancaster) was £6.3 million
lower, reflecting contract losses in the second half of last year but
initiatives to streamline the cost base and improve client satisfaction are
ongoing and are producing encouraging results. In particular, the RAPID
customer account management initiative is being rolled out across the cleaning
business and SmartClean, our daytime cleaning concept, is being well received by
clients.
In Catering we have had some good early contract wins and are seeing slightly
improved margins as a result of exiting unprofitable contracts during 2007.
Food costs continue to rise and various procurement initiatives are underway to
mitigate their impact on profit.
Profit in our specialist hygiene business was £0.4 million lower than last year
on revenue up 6.1%, reflecting principally weak trading in France.
Rentokil Initial Asia Pacific
£ million First Quarter
2008 2007 change
At 2007 constant exchange rates:
Portfolio - net movement (appendix 1) 2.5 3.8
Revenue 44.3 34.4 28.8%
Operating profit (before amortisation of intangible assets 1 and 2) 6.0 5.9 1.7%
1 Other than computer software and development costs
2 After charging additional central costs of £0.1 million in 2008
Revenue from Asia Pacific increased 28.8% year-on-year. The contract portfolio
grew at an annualised rate of 7.5%. Operating profit rose 1.7% (3.4% if
reallocated central charges are taken into account) but was £1 million below
expectations, a result of a disappointing Q1 performance from the Australian
residential pest control business and operational challenges experienced in the
washroom business in Sydney. In residential pest control, most work is done on
a job (i.e. non-contract) basis. Poor weather led to low job sales which reduced
profit because the cost base has not yet been made sufficiently flexible to
adapt changes to revenue. In washrooms, sales were behind plan and contract
terminations higher than expected. Actions are underway to rectify both
problems.
Outside Australia, the division grew profit by 55.0% on revenue up 52.0% (15.1%
organic). Rentokil Pest Control continues to demonstrate strong revenue growth
boosted by the Hong Kong Government pest control contract and strong organic and
acquisition growth in New Zealand, Malaysia, Singapore, Thailand and China.
Rentokil Taiming (China), while still small, continues to deliver an excellent
performance. Initial Textiles & Washroom in Asia has begun the year ahead of
2007, achieving double digit growth in revenue and profit in Hong Kong,
Singapore and the Philippines. Our new business in Brunei has performed in
line with expectation since its acquisition in 2007.
Other
£ million First Quarter
2008 2007 change
At 2007 constant exchange rates:
Portfolio - net movement (appendix 1) 1.6 1.1
Revenue 7.1 6.5 9.2%
Operating profit (before amortisation of intangible assets1) 2.7 2.3 17.4%
1 Other than computer software and development costs
Other businesses comprise the group's activities in South Africa, principally
washroom services, pest control and plants. Overall, operating profit rose
17.4% on revenue up 9.2%, a result of new sales and improved retention.
Central Costs
£ million First Quarter
2008 2007 change
At 2007 constant exchange rates:
Central costs 1 (10.1) (10.4) 2.9%
1 After recharging costs of £1.7 million to certain businesses in 2008 (see
basis of preparation)
Central costs were £0.3 million lower than the prior year. This is the net
effect of two main factors. Costs were reduced by £1.7 million due to the
recharge in 2008 of certain IT, shared service and other expenses that were
borne centrally in 2007. This benefit was offset by the severance costs (net of
provision releases for forfeited long-term incentives) associated with the
recent changes in the group's leadership and a higher than normal level of
professional fees.
Interest
Net interest payable of £14.7 million was £4.4 million lower than 2007. Lower
average net debt, mainly as a result of the disposal proceeds from the sale of
Electronic Security last year, accounted for £3.4 million of the reduction. A
further £1.4 million year-on-year benefit came from IAS 19 net pension interest
and £0.9 million from mark to market related credits. These were partially
offset by rate increases of £1.3 million.
Cash Flow and Debt
Operating cash flow was £17.0 million compared with £52.0 million last year.
EBITDA was £29.0 million lower at £73.0 million due to lower operating profit in
the current year and the absence of profit from the Electronic Security division
which has been sold. Higher capex was offset by a lower outflow of working
capital than last year. Tax and interest payments were £20.7 million higher
than last year, primarily due to the different phasing of payments: annual
interest payments of £17.7 million were paid in March 2008 on the euro bonds
issued in early 2007. Free cash was therefore an outflow of £29.6 million
compared with an inflow of £26.2 million in the first quarter of 2007.
Acquisitions
During the quarter, a net £21.1 million was spent on acquisitions (2007: £59.9
million). The rate of acquisitions has been substantially reduced to allow
management to focus on an operational agenda.
Dividends
Our current annual dividend totalling 7.38 pence per share for 2007 is not
supportable based on 2008 performance. The board will review the 2008 dividend
payout at the time of the interim results in August. The extent of the
reduction will depend on group trading (and particularly that of City Link) and
prospects for 2009. There is no change to the board's recommended final
dividend for 2007.
Appendix 1
ANNUAL CONTRACT PORTFOLIO - CONTINUING BUSINESSES
3 Months to 31 March 2008
Net
£m at constant 2007 New Additions/ Acquisitions /
exchange rates 1.1.08 Business Terminations Reductions Disposals 31.3.08
Textiles & Washroom Services 578.3 15.6 (13.5) 7.4 (0.3) 587.5
Pest Control 241.4 10.1 (12.6) 2.8 3.2 244.9
Ambius 86.4 1.7 (2.4) 1.3 1.5 88.5
Facilities Services 462.0 13.9 (13.4) 5.0 (0.3) 467.2
Asia Pacific 132.8 5.1 (3.9) 1.0 0.3 135.3
Other 25.7 0.8 (0.9) 1.7 - 27.3
TOTAL 1,526.6 47.2 (46.7) 19.2 4.4 1,550.7
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
31 March 31 March
2008 2007
(at 2007 constant exchange rates) £m £m
(unaudited & (unaudited &
unreviewed) unreviewed)
Business Analysis
Revenue
Textiles & Washroom Services 151.5 150.4
Pest Control 76.7 65.8
Ambius 25.6 24.3
City Link 95.2 94.5
Facilities Services 153.2 143.2
Asia Pacific 44.3 34.4
Other 7.1 6.5
Continuing operations at 2007 constant exchange rates 553.6 519.1
Exchange 24.5 (3.8)
Continuing operations at actual exchange rates 578.1 515.3
Operating profit*
Textiles & Washroom Services 24.6 24.2
Pest Control 11.4 10.2
Ambius 0.9 0.4
City Link (16.9) 9.3
Facilities Services 8.6 9.8
Asia Pacific 6.0 5.9
Other 2.7 2.3
Central costs (10.1) (10.4)
Continuing operations at 2007 constant exchange rates 27.2 51.7
Exchange 3.9 (0.9)
Continuing operations at actual exchange rates 31.1 50.8
Adjusted operating profit**
Textiles & Washroom Services 24.6 25.2
Pest Control 11.4 10.6
Ambius 0.9 0.4
City Link (15.4) 10.2
Facilities Services 8.6 9.8
Asia Pacific 6.0 5.9
Other 2.7 2.3
Central costs (10.1) (10.4)
Continuing operations at 2007 constant exchange rates 28.7 54.0
Exchange 3.9 (0.9)
Continuing operations at actual exchange rates 32.6 53.1
* 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
31 March 31 March
2008 2007
(at actual exchange rates) £m £m
(unaudited & (unaudited &
unreviewed) unreviewed)
Business Analysis
Revenue
Textiles & Washroom Services 166.0 148.0
Pest Control 80.6 65.5
Ambius 26.7 24.4
City Link 95.2 94.5
Facilities Services 155.6 142.7
Asia Pacific 47.3 33.7
Other 6.7 6.5
Continuing operations at actual exchange rates 578.1 515.3
Operating profit*
Textiles & Washroom Services 27.1 23.7
Pest Control 12.3 10.0
Ambius 1.0 0.4
City Link (16.9) 9.3
Facilities Services 8.7 9.8
Asia Pacific 6.5 5.7
Other 2.5 2.3
Central costs (10.1) (10.4)
Continuing operations at actual exchange rates 31.1 50.8
Adjusted operating profit**
Textiles & Washroom Services 27.1 24.7
Pest Control 12.3 10.4
Ambius 1.0 0.4
City Link (15.4) 10.2
Facilities Services 8.7 9.8
Asia Pacific 6.5 5.7
Other 2.5 2.3
Central costs (10.1) (10.4)
Continuing operations at actual exchange rates 32.6 53.1
* 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
31 March 31 March
2008 2007
£m £m
(unaudited & (unaudited &
unreviewed) unreviewed)
Textiles & Washroom Services - (1.0)
Pest Control - (0.4)
Ambius - -
City Link (1.5) (0.9)
Facilities Services - -
Asia Pacific - -
Other - -
Central costs - -
(1.5) (2.3)
Note: All numbers at both actual and constant exchange rates.
One-off costs relate to the group's restructuring programme and consist of
consultancy, redundancy and reorganisation costs and City Link integration
costs. They have been separately identified as they are not considered to be '
business as usual' expenses and have a varying impact on different businesses
and reporting periods.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 hours ago Molten Ventures
- 2 hours ago Touchstone Exploration Inc NPV (DI)
- 2 hours ago Team Internet Group plc
- 2 hours ago Ondo Insurtech
- 2 hours ago Wilmington