Trading Statement

Rentokil Initial PLC
19 May 2004


19TH May 2004 - Embargoed until 0700 am

                              RENTOKIL INITIAL PLC

              TRADING UPDATE FOR THE FOUR MONTHS TO 30 APRIL 2004

At the preliminary results announcement on 26th February 2004, we stated that
progress had been slower than expected in 2003 and that margins were likely to
be negatively impacted in 2004. Since then trading has deteriorated further and
the results for the first four months of 2004 were as follows:

At constant average exchange rates for 2003 turnover from continuing operations
increased by 3.0% whilst profit before tax declined by 6.2%.

Operating cash flow has been good and in line with our expectations.

Specifically by sector, the performance was as follows:

Hygiene

Total Hygiene turnover grew by 1.8%.

Hygiene Services turnover increased by 2.0%, although operating profit decreased
by 10.2%.

Pest Control turnover increased by 1.1% with operating profit declining by 4.9%.

Security

Security turnover increased by 3.6% and operating profit by 0.5%.

Facilities Management

Total Facilities Management turnover grew by 2.9%.

Facilities Management Services turnover grew by 4.2% with flat operating profit.

Tropical Plants turnover declined by 3.7% with operating profit declining by
36.9%.

Conferencing turnover increased by 3.5% with operating profit declining by 6.1%.

Parcels Delivery

Parcels Delivery turnover increased by 8.3% with a 2.1% growth in operating
profit.

Operating profit from continuing operations, at constant average exchange rates
for 2003, reduced by 7.0%.

At constant average exchange rates for 2003 total turnover increased by 1.8%
with profit before tax declining by 6.2%.

Business Environment

Trading in 2004 has been extremely disappointing, with increasingly difficult
market conditions. Many of the areas which are affecting performance are those
which are being addressed through our increased investment in people, training,
technology and service. However, the benefits of these actions are taking time
to come through. A number of specific factors are also impacting the group's
overall performance. These are:

1) Accelerating pressure on pricing and gross margins;
2) Delays in achieving the expected levels of new business from the expanded
sales force;
3) Slow progress in improving contract retention levels despite an increase in
service related resource;
4) A continued decline in UK Hygiene turnover during the restructuring period,
exacerbated by the additional related costs impacting on the margin; and
5) Increasing levels of terminations of major contracts in particular within UK
Security Guarding and UK Facilities Management Services

Outlook

The trend of the first four months trading and the factors listed above,
together with the company's initiatives taking longer than anticipated to
improve performance, leads the Board to believe that profit before tax for 2004
will be substantially lower than both 2003 and the current market expectations
for 2004. At constant average exchange rates for 2003, profit before tax for
2004 should not be less than £350 million.

James Wilde, Chief Executive, said: 'In the 2003 Preliminary Results
announcement I outlined a number of initiatives to enable Rentokil Initial to
improve organic growth rates in an increasingly price competitive environment.
These initiatives focus on investing in additional people and training as well
as technological developments to improve productivity and the quality of our
service delivery.

'We have had a poor start to the year, but I am confident in our plan to
continue to develop our four markets, Hygiene, Security, Facilities Management
and Parcels Delivery. The main emphasis will be concentrated on Hygiene and
Security within Continental Europe where there is a good opportunity to
replicate the density and coverage of our UK operations. The key to generating
growth and thereby shareholder value over the long term, is by a strong and
committed management team investing in, and concentrating on, the basics.'

Note

The above statement is made based on unaudited management accounts and at
constant rates of exchange, these being the average rates of exchange for
foreign currencies for the year 2003, as used in the 2003 Annual Report.

For further information:

James Wilde, Chief Executive                         00 44 (0)1342 833022
Roger Payne, Finance Director
Charles Grimaldi, Corporate Affairs Director
John Sunnucks/Gill Ackers, Brunswick Group LLP       00 44 (0) 207 404 5959

There will be a conference call for investors and analysts at 08:15 on 19 May
2004. Details as follows:

Dial-in number:                                      00 44 (0)1452 541 076
Password:                                            Rentokil

Interviews with Brian McGowan and James Wilde are available in video, audio and
text on www.cantos.com and www.rentokil-initial.com



                      This information is provided by RNS
            The company news service from the London Stock Exchange