Rentokil Turns To Growth Strategy,Royal Mail Strike Cuts Loss
November 06 2009 - 3:45AM
Dow Jones News
Support services company Rentokil Initial PLC (RTO.LN) is
turning its restructuring focus to growth and the Royal Mail strike
has helped reduce losses in its troubled parcels business, City
Link, company Chief Executive Alan Brown said Friday. Brown said on
a conference call to reporters that the company was is in need of a
"strong and sustainable growth agenda." He will provide details at
the full-year results but said that growth will mainly be achieved
organically through marketing and sales initiatives starting with
its largest business, the Pest & Washrooms.
The company has been undergoing a restructuring program after
its troubled City Link parcels business sparked several profit
warnings and a change of management.
Brown upgraded the forecast for City Link's full-year loss to
GBP7 million from GBP12 million, after the company added some GBP1
million to GBP2 million to the bottom line and 5% to revenue, from
the Royal Mail postal strike.
The chief executive said he didn't want to focus on snatching
unhappy customers from Royal Mail at the time of the strike because
they always go back after the strike is over.
--By Anita Likus, Dow Jones Newswires; +44 20 7842 9407;
anita.likus@dowjones.com
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