 Rentokil has struggled with falling profits in recent years |
The pest control and business services group Rentokil Initial reported a 14.6% drop in first-half profits to £55.1m.
The company's profits fell 11.8%, at constant exchange rates, in the second quarter to £33.5m, better than analysts had forecasted.
Rentokil has reduced its full-year loss forecast for City Link from £20m to £12m, helped by cost savings of more than £40m, it said.
The company had reported a string of profit warnings in 2007 and 2008.
Revenues fell 2.2% in the first half to £1.26bn and 3.2% in the second quarter to £626m.
"With regard to profit outlook for the rest of 2009, notwithstanding the economic uncertainty, we remain confident in delivering profit growth in Q3 and Q4 compared to 2008," said Alan Brown, chief executive.
Some of its biggest opportunities for cost cuts come from its European textiles and washrooms business, it said.
The economic climate continues to be difficult, it said, but it expects to make £70m of cost savings this year, £20m more than expected.
The company employs more than 78,000 people in more than 50 countries.
Source
Post a Comment
0Comments