Rentokil thrives despite Muammar Gaddafi's unpaid debt

[TrueBlueTerrier]

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Rentokil initial said it is still owed £5m for an outstanding rat-extermination contract from Libyan leader Colonel Muammar Gaddafi.

But the debt did not impact on a stellar set of first-quarter profits, which rose 41pc to £30.4m.

The performance was at least in part the result of a sharp reduction in losses at its troubled City Link courier business, which were cut by a third to £4.4m.

Debt: Rentokil said Gaddafi owes it £5m for a rat extermination

Chief executive Alan Brown said he was 'very pleased' by improvements at City Link having taken drastic action to cut costs.

He has slashed City Link staff numbers by more than 7pc to less than 5,300, and cut the vehicle fleet by another 3.5pc.

In February, Rentokil posted forecast-beating annual profits on the back of the cost cuts, and said it expected to return to revenue growth in 2010.
Brown said: 'I am encouraged by improving customer retention rates in most divisions and by the ongoing improvements in our turnaround businesses, UK Pest in particular.'

The shares fell 5.5p to 127.4p.


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[BELIAL]

Can we sue Rentokill if the black death returns?