Rentokil Initial PLC
13 December 2007
13 December 2007
RENTOKIL INITIAL PLC (RTO)
TRADING UPDATE
In our third quarter trading update for the period to 30 September 2007 we said
that while business to business trading in City Link, our express parcels
delivery business, had shown good year-on-year growth, the business to consumer
(B to C) segment had softened over the quarter. This was a continuation of what
we believe to be an industry wide trend.
Operational performance within City Link is strong with service levels higher
than this time last year. Customer retention levels remain good and we continue
to win new business. However, during the fourth quarter, the anticipated surge
in volumes seen in prior years in the B to C segment in the run up to Christmas
has been later and less than expected. B to C volumes have slipped below the
level experienced this time last year, and business to business volumes, which
had been significantly ahead, are now in line with last year's levels. As a
result fourth quarter profits from City Link are likely to be up to £10 million
below our expectations. This will have a similar impact on the results for the
group as a whole.
As we said at the time of our third quarter update on 8 November we believe that
this slowdown in B to C volumes is a direct result of weaker consumer spending
in a challenging retail environment. Progress on the integration of Target
Express continues to deliver synergy benefits ahead of original plan and in line
with the Q3 statement. The physical integration of depots will commence in
January 2008.
Trading in our other divisions remains in line with our expectations.
Rentokil Initial plc's Preliminary results for the 12 months to 31 December 2007
will be announced on Tuesday, 26 February 2008.
Enquiries:
Shareholder/analyst enquiries:
Andrew Macfarlane, Chief Financial Officer
Katharine Rycroft, Head of Investor
Relations Rentokil Initial plc 020 7592 2700
Media enquiries:
Malcolm Padley, Head of Corporate
Communications Rentokil Initial plc 07788 978199
Kate Holgate / Tom Williams Brunswick Group 020 7404 5959
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