13th Dec 2007 07:01
Rentokil Initial PLC13 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 saidthat while business to business trading in City Link, our express parcelsdelivery 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 whatwe believe to be an industry wide trend. Operational performance within City Link is strong with service levels higherthan this time last year. Customer retention levels remain good and we continueto win new business. However, during the fourth quarter, the anticipated surgein volumes seen in prior years in the B to C segment in the run up to Christmashas been later and less than expected. B to C volumes have slipped below thelevel experienced this time last year, and business to business volumes, whichhad been significantly ahead, are now in line with last year's levels. As aresult fourth quarter profits from City Link are likely to be up to £10 millionbelow our expectations. This will have a similar impact on the results for thegroup as a whole. As we said at the time of our third quarter update on 8 November we believe thatthis slowdown in B to C volumes is a direct result of weaker consumer spendingin a challenging retail environment. Progress on the integration of TargetExpress continues to deliver synergy benefits ahead of original plan and in linewith the Q3 statement. The physical integration of depots will commence inJanuary 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 2007will be announced on Tuesday, 26 February 2008. Enquiries: Shareholder/analyst enquiries:Andrew Macfarlane, Chief Financial OfficerKatharine Rycroft, Head of Investor Relations Rentokil Initial plc 020 7592 2700 Media enquiries:Malcolm Padley, Head of Corporate Communications Rentokil Initial plc 07788 978199Kate Holgate / Tom Williams Brunswick Group 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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