Trading Statement

Rentokil Initial PLC
29 May 2003



NEWS RELEASE

29 May 2003



          Trading Statement for the four months ended 30th April 2003

               Rentokil Initial continues to deliver good growth


James Wilde, Chief Executive, will say today at the company's AGM:-

'I am pleased to report on the first four months of this year. Excluding the
results of the now disposed of Belgian cash-in-transit operation, at constant
rates of exchange, turnover from continuing operations has increased by 4.9% and
profits before tax for the company by 4.2%. These growth rates would have been
higher at current rates of exchange.

The new sectoral management structure that I implemented at the beginning of the
year has settled down well and we should now start to see the benefits of the
further spread of best practice across the company.

I believe there are four broad markets to which the company provides services:
Hygiene, which incorporates Pest Control; Security, both electronic and
guarding; Facilities Management, which incorporates Tropical Plants and
Conferencing; and Parcels Delivery. I intend to continue the development of the
company through organic growth in these four areas, which will be supplemented
by bolt-on acquisitions, primarily within Hygiene and Security.

The performance for the first four months was as follows:

Hygiene


    Hygiene Services, excluding Pest Control Services, was up by 2.3% in
    turnover with similar growth in operating profits, a good performance in
    Continental Europe being offset by a decline in the UK. As part of the
    two-year recovery programme for UK Hygiene which started last year, the
    reorganisation is progressing well and a combined management structure and
    sales force of the two main divisions, including a national accounts team,
    will be operational from July 2003.

    Pest Control Services grew turnover by 3.1%, with margin improvement
    producing a strong growth in operating profits, benefiting from good
    performances in Continental Europe. The Department of Trade and Industry has
    now released our UK business from its undertakings, signed in 1988,
    regarding the supply of pest control services.

Security


    Security Services increased turnover by 6.9% with margin improvement
    producing an excellent increase in operating profits coming from excellent
    performances in Continental Europe and North America, and a good performance
    in the UK. In May we completed an entry acquisition into the US electronic
    security market to build on the success of our North American security
    guarding business, thereby enabling it to develop the market opportunity to
    offer our clients a total security proposition.

Facilities Management


    Facilities Management Services in the UK showed good growth in turnover,
    with a sound growth in operating profits albeit, as expected, at somewhat
    lower profit margins. However, the performance of our businesses in North
    America and Continental Europe was disappointing following the termination
    of some large cleaning contracts. As a consequence, Facilities Management
    Services, excluding Tropical Plants and Conferencing, turnover grew by only
    1.5% in total, with a decline in operating profits.

    Tropical Plants' turnover declined by 1.1%, with a larger reduction in
    operating profits, a good performance in Continental Europe and sound growth
    in the UK, being offset by a disappointing performance in North America.

    Conferencing turnover grew by 13.2% due to the opening of two new centres.
    Operating profits declined, reflecting the continuing lower levels of
    non-contracted occupancy and customers' discretionary spend and the expected
    start up losses at the new centres.

Parcels Delivery


    Parcels Delivery turnover grew by 22.3% with a somewhat lower level of
    growth in operating profits. Although UK turnover grew by 16.7%, the margin
    was adversely impacted by the higher proportion of non-premium next day
    consignments.

Operating profits (EBIT) for the continuing operations of the company increased
by 2.5% and operating cash flow has been good and in line with our expectations
for the four-month period.

In recent weeks we have made three bolt-on acquisitions, and entered the North
American electronic security market with one acquisition, at a total cost of £19
 million, these four businesses having aggregate annualised turnover of
approximately £25 million.

Since 28 February we have purchased 16.8 million shares as part of our share
buy-back programme at a cost of £30 million.

We continue to monitor closely developments at Ashtead Group Plc and participate
in constructive discussions with them in respect of the £134 million convertible
loan note. Interest continues to accrue and there are, currently, no intentions
to reduce the carrying value of the loan note.



Prospects for 2003

We expect to continue to generate strong operating cash flow with which we plan
to make bolt-on acquisitions in Hygiene and Security, particularly in North
America and Continental Europe, and continue our share buy-back programme.

We expect that good growth in turnover and pre-tax profits will continue
throughout the year. The Board expects strong growth in earnings per share which
could be further enhanced by the continuation, as planned, of our share buy-back
programme.'





Note:

The above statement is based upon unaudited management accounts and at constant
rates of exchange for foreign currencies for the year 2002, as used in the 2002
annual report.

                                      END





For further information please contact:

J C F Wilde     Chief Executive

R C Payne     Finance Director

C D Grimaldi     Corporate Affairs Director

Telephone [phone]




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