2nd May 2008 07:00
Rentokil Initial PLC02 May 2008 2 May 2008 RENTOKIL INITIAL PLC (RTO) FIRST QUARTER TRADING UPDATE FOR THREE MONTHS ENDED 31 MARCH 2008 Headline financials • As stated on 21 April 2008, continuing problems within City Link have impacted group financial performance • Revenue up 6.6% to £553.6 million (2007: £519.1 million)* • Q1 adjusted operating profit and adjusted profit before income tax £28.7 million (2007: £54.0 million) and £14.6 million (2007: £35.4 million) respectively* • City Link Q1 adjusted operating loss of £15.4 million on revenue down 8.0% (adjusted for lower trading days) • Excluding City Link, revenue up 8.0% and adjusted operating profit up 0.7%* • Profit before income tax from continuing operations £5.0 million (2007: £23.6 million) *at constant exchange rates Operational developments • New City Link management team has made some progress in addressing operational problems: o Service levels showing early signs of improvement o Development of seven-point plan to improve customer service, develop integrated information systems and optimise hub and depot network • Strong performance from Pest Control particularly continental Europe Alan Brown, Chief Executive Officer of Rentokil Initial plc, said: "A number of our businesses are making good progress in growing the top line,developing customer portfolios and reducing termination rates. However, we havestruggled to implement major change programmes which has affected our ability toturn top line growth into profit. "We have outlined our plan to restore City Link to operational and financialhealth but returning the business to its former levels of profitability islikely to take some time. The group agenda is now to focus on operationalexcellence and efficiency, with improvements in customer service being theprimary indicator of success in the short-term. "Our current annual dividend totalling 7.38 pence per share for 2007 is notsupportable based on 2008 performance. The board will review the 2008 dividendpayout at the time of the interim results in August. There is no change to thefinal recommended dividend for 2007." Financial Summary First Quarter£million 2008 2007 change Pro forma Continuing Operations(1) At 2007 constant exchange rates(2) Revenue 553.6 519.1 6.6% Operating profit before amortisation of intangible assets(3) 27.2 51.7 (47.4%) Add back: one-off items 1.5 2.3 34.8% Adjusted operating profit(4) 28.7 54.0 (46.9%) Share of profit from associates (net of tax) 0.6 0.5 20.0% Interest (14.7) (19.1) 23.0% Adjusted profit before income tax(4) 14.6 35.4 (58.8%) Continuing Operations(1) At actual exchange rates Revenue 578.1 515.3 12.2% Operating profit before amortisation of intangible assets(5) 31.1 50.8 (38.8%) Amortisation of intangible assets(6) (12.1) (8.6) (40.7%) Operating profit 19.0 42.2 (55.0%) Share of profit from associates (net of tax) 0.7 0.5 40.0% Net interest payable (14.7) (19.1) 23.0% Profit before income tax 5.0 23.6 (78.8%) Operating cash flow 17.0 52.0 (67.3%) Free cash flow(7) (29.6) 26.2 - (1) All figures are for continuing operations and are unaudited. (2) Results at constant exchange rates have been translated at the full year average exchange rates for the year ended 31 December 2007. £/$ average rates: Q1 2008 1.9859; Q1 2007 1.9623; FY 2007 2.0038. £/• average rates: Q1 2008 1.3159; Q1 2007 1.4869; FY 2007 1.4586. (3) Before amortisation of intangible assets (other than computer software and development costs) of £11.5m (2007: £8.6m). (4) Before amortisation of intangible assets (other than computer software and development costs) of £11.5m (2007: £8.6m) and items of a one-off nature of £1.5m (2007: £2.3m). See appendix 4 for further details. (5) Before amortisation of intangible assets (other than computer software and development costs) of £12.1m (2007: £8.6m). (6) Other than computer software and development costs. (7) Cash flow before acquisitions, disposals, equity dividend payments and special pension contribution. For further information Shareholder/analyst enquiries:Andrew Macfarlane, Chief Financial Officer Rentokil Initial plc 020 7592 2700Katharine Rycroft, Head of Investor Relations 07811 270734 Media enquiries:Malcolm Padley, Head of Corporate Communications Rentokil Initial plc 07788 978 199Kate Holgate, Tom Williams Brunswick Group 020 7404 5959 A conference call for analysts and shareholders will be held today at 09.00am. To join this call, please dial +44 (0)20 7806 1957 (UK), +33(0) 1 70 99 43 00(France), +852 3002 1355 (Hong Kong), and +1 718 354 1389 (US). A recording ofthe call will be available for 14 days on the following numbers: UK: +44 (0)207806 1970, France: +33 (0)1 71 23 02 48, Hong Kong: +852 3002 1607 and US: +1718 354 1112. This announcement contains statements that are, or may be, forward-lookingregarding the group's financial position and results, business strategy, plansand objectives. Such statements involve risk and uncertainty because theyrelate to future events and circumstances and there are accordingly a number offactors which might cause actual results and performance to differ materiallyfrom those expressed or implied by such statements. Basis of preparation In all cases, references to operating profit are for continuing businessesbefore amortisation of intangible assets (other than computer software anddevelopment costs). References to adjusted operating profit and adjusted profitbefore income tax also exclude items of a one-off nature, totalling a net costof £1.5 million (2007: £2.3 million) that have impacted the results for theperiod. They relate to the group's restructuring programme and consist ofconsultancy, redundancy and reorganisation costs and City Link integrationcosts. They have been separately identified as they are not considered to be "business as usual" expenses and have a varying impact on different businessesand reporting periods. An analysis of these costs by division is provided inappendix 4. This commentary reflects the management divisional structure and notthe statutory segmental information. All comparisons are at constant 2007 fullyear average exchange rates. In 2008 certain shared service, IT and other costs that were treated as centralcosts in 2007 are being charged to the businesses that benefit from them. Inthe first quarter such costs totalled £1.7 million and have principally beenrecharged to Textiles and Washroom Services (£0.4 million), Pest Control (£0.7million), Facilities Services (£0.5 million) and Asia Pacific (£0.1 million).Comparative figures have not been restated. QUARTERLY REVIEW First quarter revenue for the group as a whole of £553.6 million was 6.6% higherthan prior year with all divisions reporting increased revenues. Each divisiongrew revenues by over 5% with the exception of City Link and Textiles andWashroom Services. As indicated in the trading update of 21 April, networkrevenue within City Link was 11% lower than Q1 2007 and, adjusted for lowertrading days in 2008, revenue was down 8%. Excluding the impact of acquisitionsand disposals and absent City Link, organic growth in the quarter was 2.6%. The quarterly portfolio gain was £24.1 million, equivalent to an annualisedgrowth rate of 6.3%. It was made up of new business wins of £47.2 million,acquisitions/disposals of £4.4 million and net additions/reductions of £19.2million offset by terminations of £46.7 million, implying an annualised customerretention rate of 87.8% (2007: 88.4%). Group operating profit (before amortisation of intangible assets of £11.5million) of £27.2 million was 47.4% lower than in 2007 and was adverselyaffected by City Link's loss of £16.9 million (2007: £9.3 millionprofit) in the period. Adjusted operating profit (before amortisation ofintangibles) of £28.7 million showed a decrease of 46.9% year-on-year; excludingCity Link, the balance of the group's profit at this level grew by 0.7%. Adjusted profit before income tax (again, before amortisation of intangibleassets) fell 58.8% to £14.6 million. The group's revenue and profit at actual rates of exchange benefited from theweakness of Sterling compared to 2007. First quarter revenue growth at actualexchange rates was 12.2% (6.6% at constant rates) and the decline in adjustedoperating profit was 38.6% (46.9% at constant rates). Initial Textiles and Washroom Services £ million First Quarter 2008 2007 Change At 2007 constant exchange rates: Portfolio - net movement (appendix 1) 9.2 1.2 Revenue 151.5 150.4 0.7% Operating profit (before amortisation of intangible assets 1 and 2) 24.6 24.2 1.7% One-off items - 1.0 - Adjusted operating profit (before one-off items and amortisation of intangible 24.6 25.2 (2.4%)assets1 and 2) 1 Other than computer software and development costs 2 After charging additional central costs of £0.4 million in 2008 Headline revenue for the division was up 0.7%, held back by the disposal of theUK Wipers business and German Hospital Services business in the second half oflast year. Excluding Wipers and German Hospital Services, the division grewrevenue by 3.2% (2.6% organically). Growth in continental Europe was 4.8%,offset by a decline of 7.0% in the UK washroom business. Adjusted operatingprofit of £24.6 million was down 2.4% on 2007, attributable to three principalfactors: additional costs recharged from the group centre (£0.4 million); lowerUK washroom profit (£0.2 million); and higher divisional costs (£0.5 million) to allow the business to investigate efficiency and procurement opportunities in its logistics and supply chain. Profit from the continental European business was up 2.9%. Net portfolio gain for the quarter was strong with growth of 1.6%. This can beattributed both to good levels of retention, currently at 90.7% from 89.7% thistime last year, and a slightly easier pricing environment in our major markets. The physical infrastructure changes within the UK washroom business are completefollowing the closure in Q4 of our plants at Bradford and Chorley and theopening of three new towel and mat laundries in Reading, Birmingham and Glasgow,all of which are fully operational. In our 2007 first quarter trading statementwe reported that the business continued to experience higher than acceptabletermination rates. It is therefore encouraging that despite the physicaldisruption that has been incurred, the business grew its portfolio in the firstquarter of 2008. The focus for the remainder of the year is firmly on improvingcustomer service and sales. Rentokil Pest Control £ million First Quarter 2008 2007 changeAt 2007 constant exchange rates: Portfolio - net movement (appendix 1) 3.5 4.2 Revenue 76.7 65.8 16.6% Operating profit (before amortisation of intangible assets 1 and 2) 11.4 10.2 11.8% One-off items - 0.4 - Adjusted operating profit (before one-off items and amortisation of intangible 11.4 10.6 7.5%assets1 and 2) 1 Other than computer software and development costs 2 After charging additional central costs of £0.7 million in 2008 The Pest Control division continued to perform strongly in the first quarter of2008 delivering revenue growth of 16.6% and adjusted operating profit growth of7.5% (or 14.2% if the additional central cost recharges are excluded). Organicrevenue growth was 7.3%. The profit performance represents a significantimprovement on the first quarter of 2007 which incurred a full quarter ofseasonal losses at the US business, JC Ehrlich. Work to improve off-seasonproductivity led to a year-on-year reduction in US losses of £1.2 million. Across continental Europe, profit grew 9.6% on revenue up 14.4% (6.6% organic).Revenue growth was strong across the territory aided by particularly strongperformances in France, Spain, Portugal and the Netherlands. The UK pest control business generated its best Q1 sales growth in five years.Revenue increased by 14.5%, the highest organic growth rate across the division,as a result of a sustained drive on sales, improvements in customer retentionand contract portfolio growth. Returning this business to profit growth in2008 remains a priority for the Pest Control division. North America grew revenue by 24.8% in Q1 and includes the contribution fromPresto-X, acquired in July 2007. Organic growth was 3.4%. There are no signsat present that the business is being affected by the US economic climate, butwe are keeping this under careful review. A focus on off-season productivityhas significantly mitigated the impact of the traditional first quarter losseswhich were reduced by £1.2 million. The business was forced to exit Copesan, aUS organisation of independent regional pest control companies, in January as aresult of our increased geographic presence. The exit from Copesan allows usgreater freedom to develop the business in the future but will have a short-termimpact, reducing 2008 revenue by an estimated £3 million. Ambius £ million First Quarter 2008 2007 Change At 2007 constant exchange rates: Portfolio - net movement (appendix 1) 2.1 0.5 Revenue 25.6 24.3 5.3% Operating profit (before amortisation of intangible assets 1) 0.9 0.4 125.0% 1 Other than computer software and development costs Ambius revenue was up 5.3% year-on-year (2.5% organic). This result was acombination of strong portfolio growth of 2.4% in the quarter and good jobsales. Profit was up 125.0% on last year, but benefited from the non-recurrenceof Ambius re-branding costs amounting to £0.5 million in the first quarter of2007. Europe has continued to perform well during the period. Further, the newmanagement team in place in the UK business has made progress in addressingperformance issues and for the first time in two years has achieved organicportfolio growth. Retention has improved from 85.8% in Q4 2007 to 88.9% and thebusiness is making good progress towards its goal of quarter-on-quarter profitgrowth at the end of this year. We continue to be cautious about revenue and profit growth in North America asthe economic downturn is showing signs of softening portfolio and job salesgrowth across the region. Revenue growth was 1.2% in the first quarter, butgood cost control enabled a small increase in profit. Sales in new brand extension services, including ambient scenting and freshfruit delivery, accounted for 15.9% of portfolio sales in Q1 and continue to aimto offset any downturn in trading. City Link £ million First Quarter 2008 2007 ChangeAt 2007 constant exchange rates: Revenue 95.2 94.5 0.7% Operating profit (before amortisation of intangible assets 1) (16.9) 9.3 - Integration costs 1.5 0.9 - Adjusted operating profit (before integration costs and amortisation of (15.4) 10.2 -intangible assets 1) 1 Other than computer software and development costs The new senior management team put in place at City Link over the past twomonths has begun to address the operational problems within the business. Thisteam, consisting largely of individuals experienced in running non-franchisenetworks, has already enjoyed some success in improving service levels and inre-establishing relationships with customers. However, the declining performance trend of the fourth quarter 2007 hascontinued into Q1 2008. This is a result of the difficulties experienced inintegrating the City Link franchisees and the Target Express acquisition withthe core City Link business. This has led to a greater than anticipatedoperating loss (before amortisation of intangible assets) of £16.9 million, ofwhich £10 million is attributable to non-recurring costs. In accordance with ourpolicy (see basis of preparation) £1.5 million of these costs, relatingprimarily to depot integration, have been treated as one-off items. The adjustedoperating loss for the quarter was therefore £15.4 million (2007: profit £10.2million). Network revenue was 11% lower than Q1 2007. Adjusted for lower trading days in2008, revenue was down 8.0%. Revenue from the top 50 customers, which accountsfor 26% of total revenue, has grown year on year. The loss of revenue isprimarily from small accounts, which have been particularly adversely affectedby the buy-back of franchisees and the problems experienced as a result of theattempted integration of Target Express and City Link. Headline costs have risen sharply from £84.3 million in Q1 2007 to £110.6million (adjusted to exclude one-off items of £1.5 million) in Q1 2008.Approximately £13 million of this increase is attributable to the cost bases ofthe acquired franchisees (offset by the acquired revenue). A further £8.5million is attributable to non-recurring costs (which were not restructuringcosts and do not meet our definition of one-off items) and the balance of £5million to underlying cost increases. As announced on 21 April, in light of first quarter trading and the currenttrends in revenue and costs, it now appears likely that the division will incura significant full year loss. Although City Link's new management team has made progress in sales generationand improved account management, the team has a number of challenges to addressand will work to a seven-point plan which will involve: • Re-instituting a service orientated culture by ensuring customer services are in close proximity to our customers; • Establishing operating systems that enable information to be shared across the combined network, reliably and securely; • Establishing control systems and processes that enable transparency of information and enable central control of costs, where appropriate, rather than the dispersal of costs and controls across each of the 94 depots; • Reviewing the size, number and location of hubs and depots; • Right-sizing resources to match the cost base to current levels of revenue; • Considering how to capitalise on the growth opportunities in the parcels market; in particular the growth of B to C driven by Internet purchases; and • Ensuring that the organisation has the capability to drive this agenda efficiently and effectively. Initial Facilities Services £ million First Quarter 2008 2007 changeAt 2007 constant exchange rates: Portfolio - net movement (appendix 1) 5.2 0.4 Revenue 153.2 143.2 7.0% Operating profit (before amortisation of intangible assets 1 and 2) 8.6 9.8 (12.2%) 1 Other than computer software and development costs 2 After charging additional central costs of £0.5 million in 2008 Revenue from Initial Facilities Services increased 7.0% primarily driven byincreased contract turnover from the acquisition of Lancaster in 2007 offset bythe sale of the Netherlands cleaning business last year. Organic revenue growthwas 0.4%. Operating profit declined 12.2% year-on-year principally as a resultof the re-allocation of central charges (£0.5 million), and asset write-offs inSpain where the back office of the division's cleaning business is beingreorganised (£0.5 million). In UK Cleaning, market conditions remain tough particularly in the retail andleisure sectors. First quarter revenue (excluding Lancaster) was £6.3 millionlower, reflecting contract losses in the second half of last year butinitiatives to streamline the cost base and improve client satisfaction areongoing and are producing encouraging results. In particular, the RAPIDcustomer account management initiative is being rolled out across the cleaningbusiness and SmartClean, our daytime cleaning concept, is being well received byclients. In Catering we have had some good early contract wins and are seeing slightlyimproved margins as a result of exiting unprofitable contracts during 2007.Food costs continue to rise and various procurement initiatives are underway tomitigate their impact on profit. Profit in our specialist hygiene business was £0.4 million lower than last yearon revenue up 6.1%, reflecting principally weak trading in France. Rentokil Initial Asia Pacific £ million First Quarter 2008 2007 changeAt 2007 constant exchange rates: Portfolio - net movement (appendix 1) 2.5 3.8 Revenue 44.3 34.4 28.8% Operating profit (before amortisation of intangible assets 1 and 2) 6.0 5.9 1.7% 1 Other than computer software and development costs 2 After charging additional central costs of £0.1 million in 2008 Revenue from Asia Pacific increased 28.8% year-on-year. The contract portfoliogrew at an annualised rate of 7.5%. Operating profit rose 1.7% (3.4% ifreallocated central charges are taken into account) but was £1 million belowexpectations, a result of a disappointing Q1 performance from the Australianresidential pest control business and operational challenges experienced in thewashroom business in Sydney. In residential pest control, most work is done ona job (i.e. non-contract) basis. Poor weather led to low job sales which reducedprofit because the cost base has not yet been made sufficiently flexible toadapt changes to revenue. In washrooms, sales were behind plan and contractterminations higher than expected. Actions are underway to rectify bothproblems. Outside Australia, the division grew profit by 55.0% on revenue up 52.0% (15.1%organic). Rentokil Pest Control continues to demonstrate strong revenue growthboosted by the Hong Kong Government pest control contract and strong organic andacquisition growth in New Zealand, Malaysia, Singapore, Thailand and China.Rentokil Taiming (China), while still small, continues to deliver an excellentperformance. Initial Textiles & Washroom in Asia has begun the year ahead of2007, achieving double digit growth in revenue and profit in Hong Kong,Singapore and the Philippines. Our new business in Brunei has performed inline with expectation since its acquisition in 2007. Other £ million First Quarter 2008 2007 change At 2007 constant exchange rates: Portfolio - net movement (appendix 1) 1.6 1.1 Revenue 7.1 6.5 9.2% Operating profit (before amortisation of intangible assets1) 2.7 2.3 17.4% 1 Other than computer software and development costs Other businesses comprise the group's activities in South Africa, principallywashroom services, pest control and plants. Overall, operating profit rose17.4% on revenue up 9.2%, a result of new sales and improved retention. Central Costs £ million First Quarter 2008 2007 change At 2007 constant exchange rates: Central costs 1 (10.1) (10.4) 2.9% 1 After recharging costs of £1.7 million to certain businesses in 2008 (seebasis of preparation) Central costs were £0.3 million lower than the prior year. This is the neteffect of two main factors. Costs were reduced by £1.7 million due to therecharge in 2008 of certain IT, shared service and other expenses that wereborne centrally in 2007. This benefit was offset by the severance costs (net ofprovision releases for forfeited long-term incentives) associated with therecent changes in the group's leadership and a higher than normal level ofprofessional fees. Interest Net interest payable of £14.7 million was £4.4 million lower than 2007. Loweraverage net debt, mainly as a result of the disposal proceeds from the sale ofElectronic Security last year, accounted for £3.4 million of the reduction. Afurther £1.4 million year-on-year benefit came from IAS 19 net pension interestand £0.9 million from mark to market related credits. These were partiallyoffset by rate increases of £1.3 million. Cash Flow and Debt Operating cash flow was £17.0 million compared with £52.0 million last year.EBITDA was £29.0 million lower at £73.0 million due to lower operating profit in the current year and the absence of profit from the Electronic Security division which has been sold. Higher capex was offset by a lower outflow of working capital than last year. Tax and interest payments were £20.7 million higher than last year, primarily due to the different phasing of payments: annual interest payments of £17.7 million were paid in March 2008 on the euro bonds issued in early 2007. Free cash was therefore an outflow of £29.6 million compared with an inflow of £26.2 million in the first quarter of 2007. Acquisitions During the quarter, a net £21.1 million was spent on acquisitions (2007: £59.9million). The rate of acquisitions has been substantially reduced to allowmanagement to focus on an operational agenda. Dividends Our current annual dividend totalling 7.38 pence per share for 2007 is notsupportable based on 2008 performance. The board will review the 2008 dividendpayout at the time of the interim results in August. The extent of thereduction will depend on group trading (and particularly that of City Link) andprospects for 2009. There is no change to the board's recommended finaldividend for 2007. Appendix 1 ANNUAL CONTRACT PORTFOLIO - CONTINUING BUSINESSES 3 Months to 31 March 2008 Net£m at constant 2007 New Additions/ Acquisitions /exchange rates 1.1.08 Business Terminations Reductions Disposals 31.3.08 Textiles & Washroom Services 578.3 15.6 (13.5) 7.4 (0.3) 587.5Pest Control 241.4 10.1 (12.6) 2.8 3.2 244.9Ambius 86.4 1.7 (2.4) 1.3 1.5 88.5 Facilities Services 462.0 13.9 (13.4) 5.0 (0.3) 467.2Asia Pacific 132.8 5.1 (3.9) 1.0 0.3 135.3 Other 25.7 0.8 (0.9) 1.7 - 27.3TOTAL 1,526.6 47.2 (46.7) 19.2 4.4 1,550.7 Notes Contract portfolio definition: Customer contracts are usually either "fixedprice", "as-used" (based on volume) or mixed contracts. Contract portfolio isthe measure of the annualised value of these customer contracts. Contract portfolio valuation: The contract portfolio value is typically recordedas the annual value from the customer contract. However, in some cases -especially "as-used" (based on volume) and mixed contracts - estimates arerequired in order to derive the contract portfolio value. The key points inrespect of valuation are: "As-used" contracts: These are more typical in Textiles and Washroom Services,where elements of the contract are often variable and based on usage. Valuationis based on historic data (where available) or forecast values. Income annualisation: In some instances, where for example the underlyingcontract systems cannot value portfolio or there is a significant "as-used"element, the portfolio valuation is calculated using an invoice annualisationmethod. Inter-company: The contract portfolio figures include an element ofinter-company revenue. Job work and extras: Many of the contracts within the contract portfolioinclude ad hoc and/or repeat job work and extras. These values are excludedfrom the contract portfolio. Rebates: The contract portfolio value is gross of customer rebates. These areconsidered as a normal part of trading and are therefore not removed from theportfolio valuation. New business: Represents new contractual arrangements in the period, which caneither be new contracts with an existing customer or with a new customer. Terminations: Represent the cessation of either a specific existing customercontract or the complete cessation of business with a customer, in the period. Net additions/reductions: Represents net change to the value of existingcustomer contracts in the period as a result of changes (either up or down) involume and/or pricing. Acquisitions: Represents the valuation of customer contracts obtained fromacquisitions made in the period. Appendix 2 Divisional Analysis (at constant exchange rates)(based upon the way businesses are managed) 3 months to 3 months to 31 March 31 March 2008 2007(at 2007 constant exchange rates) £m £m (unaudited & (unaudited & unreviewed) unreviewed)Business Analysis RevenueTextiles & Washroom Services 151.5 150.4Pest Control 76.7 65.8Ambius 25.6 24.3City Link 95.2 94.5Facilities Services 153.2 143.2Asia Pacific 44.3 34.4Other 7.1 6.5Continuing operations at 2007 constant exchange rates 553.6 519.1Exchange 24.5 (3.8)Continuing operations at actual exchange rates 578.1 515.3 Operating profit* Textiles & Washroom Services 24.6 24.2Pest Control 11.4 10.2Ambius 0.9 0.4City Link (16.9) 9.3Facilities Services 8.6 9.8Asia Pacific 6.0 5.9Other 2.7 2.3Central costs (10.1) (10.4)Continuing operations at 2007 constant exchange rates 27.2 51.7Exchange 3.9 (0.9)Continuing operations at actual exchange rates 31.1 50.8 Adjusted operating profit** Textiles & Washroom Services 24.6 25.2Pest Control 11.4 10.6Ambius 0.9 0.4City Link (15.4) 10.2Facilities Services 8.6 9.8Asia Pacific 6.0 5.9Other 2.7 2.3Central costs (10.1) (10.4)Continuing operations at 2007 constant exchange rates 28.7 54.0Exchange 3.9 (0.9)Continuing operations at actual exchange rates 32.6 53.1 * Before amortisation of intangible assets other than computer software anddevelopment costs ** Before amortisation of intangible assets other than computer software anddevelopment costs and items of a one-off nature (see appendix 4 for furtherdetails). Appendix 3 Divisional Analysis (at actual exchange rates)(based upon the way businesses are managed) 3 months to 3 months to 31 March 31 March 2008 2007(at actual exchange rates) £m £m (unaudited & (unaudited & unreviewed) unreviewed)Business Analysis Revenue Textiles & Washroom Services 166.0 148.0Pest Control 80.6 65.5Ambius 26.7 24.4City Link 95.2 94.5Facilities Services 155.6 142.7Asia Pacific 47.3 33.7Other 6.7 6.5Continuing operations at actual exchange rates 578.1 515.3 Operating profit* Textiles & Washroom Services 27.1 23.7Pest Control 12.3 10.0Ambius 1.0 0.4City Link (16.9) 9.3Facilities Services 8.7 9.8Asia Pacific 6.5 5.7Other 2.5 2.3Central costs (10.1) (10.4)Continuing operations at actual exchange rates 31.1 50.8 Adjusted operating profit** Textiles & Washroom Services 27.1 24.7Pest Control 12.3 10.4Ambius 1.0 0.4City Link (15.4) 10.2Facilities Services 8.7 9.8Asia Pacific 6.5 5.7Other 2.5 2.3Central costs (10.1) (10.4)Continuing operations at actual exchange rates 32.6 53.1 * Before amortisation of intangible assets other than computer software anddevelopment costs. ** Before amortisation of intangible assets other than computer software anddevelopment costs and items of a one-off nature (see appendix 4 for furtherdetails). Appendix 4One-off Items 3 months to 3 months to 31 March 31 March 2008 2007 £m £m (unaudited & (unaudited & unreviewed) unreviewed) Textiles & Washroom Services - (1.0)Pest Control - (0.4)Ambius - -City Link (1.5) (0.9)Facilities Services - -Asia Pacific - -Other - -Central costs - - (1.5) (2.3) Note: All numbers at both actual and constant exchange rates. One-off costs relate to the group's restructuring programme and consist ofconsultancy, redundancy and reorganisation costs and City Link integrationcosts. They have been separately identified as they are not considered to be "business as usual" expenses and have a varying impact on different businessesand reporting periods. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rentokil Initial