Trading Statement

Rentokil Initial PLC
22 November 2000

                            

         RENTOKIL INITIAL 2000 TRADING STATEMENT
                            
Rentokil Initial announced at the end of August with its
Interim Report that it would issue an update on the
second half 2000 trading and confirms that in future it
will issue trading updates between its Preliminary and
Interim Results to ensure that the optimum flow of
information is available to the investment community.

The 2000 Preliminary results will be announced on 28th
February 2001.

Second Half Trading 2000 and 2001 Outlook

Current trading is in line with market expectations and
with the statement made by the Board on 29th August 2000
that 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 major restructuring of our business, involving the
disposal of approximately one-third of our business
activities by turnover, impacted on the performance of
our remaining core activities in the first half.  With
this disruptive influence removed, the Board expects that
in 2001 core businesses will show accelerating turnover
growth together with growth in profits.

Focus and Bundling

We first reported under our new headings of Focus
(Specialised Services and Niche Specialised Services) and
Bundling (Facilities Management) in August at the time of
our Interim 2000 Results.  Our Focus services represented
some 77% of core turnover and 91% of core profits for the
half year.

The two sectors - Focus and Bundling - are proving, as
expected, to be capable of co-existence being at opposite
ends of the business services markets.  Focus services
are primarily purchased by small and medium sized
enterprises (SMEs) and typically represent 85% of the
business services market.  Facilities Management services
are usually purchased by large organisations and
represent some 15% of the business services market.
Rentokil Initial has a clear advantage in being able to
provide both Focus and Bundled services.

Price pressure, whilst always present, is substantially
less in Focus services than in Bundled services.  This is
because the Specialised and Niche Specialised Services,
which make up our Focus range of services, are bought
predominantly for quality rather than price.  Rentokil
Initial Focus services have been carefully developed over
the years to offer precisely this consistent quality
characteristic.

Bundled services or Facilities Management services are
typically under price pressure being high volume,
commodity purchases where price is the primary
consideration leading to the wide usage of competitive
tendering.

Focus

Specialised Services - Current Trading

These services are responding steadily to the increased
sales and marketing investment of the first half so that,
in the second half, Hygiene is showing good turnover
growth leading to a good trading performance with steady
improvement in UK and France.  Security continues with
solid turnover growth.  Pest Control is showing good
turnover growth in most countries although UK trading is
slow.  Tropical Plants turnover growth is strong,
assisted by the recent US acquisition which is being
integrated well and should help produce an excellent
profit performance in the second half.

Niche Specialised Services - Current Trading

Conferencing is showing steady turnover growth which
should provide for a strong second half profit
performance.  Parcels Delivery is now operating through
its new hub which is fully on stream, and this, linked
with steady turnover growth, should provide for a major
improvement on first half profits.

Bundling

Facilities Management - Current Trading

Turnover comparisons for the second half with those of
1999 continue to be adversely affected by the loss of
three large contracts towards the end of last year.
However, contracts with a value in excess of £117m and an
annualised value of £34m have been won.  These contracts
include those for Railtrack, Littlewoods, Gala Clubs and
six Local Authorities for state education catering.

Early indications are that our Facilities Management
business based on our strong UK Cleaning, Catering and
Hospital Service businesses will provide a very solid
foundation for the development of our new multi-service
proposition.  Nevertheless, margins remain under pressure
in the facilities management sector in general and we
anticipate that as turnover increases we will see  some
reduction in margin in the Facilities Management business
in line with the market trend.  This sector represents
some 15% of the business services market and we view this
as a worthwhile addition alongside our Focus service
proposition in the UK.

Share Buy-Back Update

The company has purchased 193 million shares since 29th
August but only some 4 million in the last six weeks.

The acquisition of the Danish public company Ratin which
held 32% of Rentokil Initial shares has now been
successfully completed.  This acquisition created
unprecedented selling of Rentokil Initial shares until
the end of September 2000 which we believe was for two
reasons:-

     * High selling from the unwinding of arbitrage
       positions following the  announcement of the
       acquisition in March 2000.  Prior to the
       announcement, Ratin shares were trading at a
       discount of some 7%-23% to the underlying value of
       Rentokil Initial shares.
       
     * Ratin was one of the largest quoted stocks on the
       Danish stock exchange and widely held by Danish
       institutions.  When the Ratin shares were
       exchanged for Rentokil Initial shares, many Danish
       institutions were required to sell a large
       proportion of their holdings as Rentokil Initial
       shares represented a foreign holding (rather than
       a domestic holding), breaching permitted levels of
       foreign holdings.

To date, since the commencement of the buy-back
programme, 778 million shares representing 27.2% of the
then share capital have been purchased at a cost of £1.3
billion with an average price of 166.5p per share.  On
the basis of our 1999 earnings, the share buy-back would
improve earnings per share up to a buy-back price of
£2.95 per share.

There is outstanding capacity, already approved by
shareholders, for the purchase of up to a further 270
million shares, which represents a further 12.9% of the
share capital as at today's date.

Disposals Update

The disposal programme is well over 90% complete with
£562m of our anticipated proceeds of at least £600m
having already been realised.  Ten businesses have now
been sold and we are in negotiations with potential
buyers and expect to sell the remainder by the end of the
year.  The total proceeds from the disposals are expected
to meet our target of at least £600m.  Trading from these
non core operations has been in line with market
expectations.

In 1999 the businesses identified for disposal
represented some 30% of the company's turnover and 20% of
profit but only 10% of cash flow.  Our remaining
businesses are excellent quality, highly cash generative
businesses in growth markets.

Financial Capacity

Having spent some £375m since the half year on the share
buy-back and acquisitions, the company still has some
£1.2 billion available for acquisitions and/or further
share buy-backs.  Acquisitions will be concentrated upon
our Hygiene and Security services in Europe and North
America and on the continued development of our
Conferencing business in UK and its expansion into
Continental Europe.

E-commerce

E-commerce initiatives are progressively providing
benefits across four functions:-  sales, service,
administration and procurement.

The appointment of our e-Commerce Director is ensuring
the successful transfer of best practice across the
company.  For example, the Remote Access Monitoring (RAM)
technology, which has been developed and introduced by
our security division, is being developed by our Pest
Control business to provide internet based access by
clients to their service records and this is expected to
be introduced later into Hygiene and Tropical Plants.

The e-delivery service which was launched by our UK
Parcels Delivery business is showing promising early
signs of success.

The opportunities for centralised and co-ordinated
procurement are being implemented and it is expected that
significant savings will be made in the medium term.