Rentokil Initial announced that efficiency plans and a reduction in staffing levels have helped the company achieve a 30 per cent increase in profit, despite flat revenues.
City Link, the parcel business owned by Rentokil Initial, made 250 people redundant in the West Midlands during the first half of 2010 following the closure of its Wednesbury depot. Revenues for City Link were £167.1 million during the half, with Rentokil Initial saying courier sector is very competitive on price cuts. Rentokil Initial's textile and washroom division reported a small decline in revenue, down 1.7 per cent because clients delayed spending decisions. While the pest control division saw its sales grow by 1.1 per cent in part due to a major deal with the Libyan government.
Profits at CIO 100 listed Rentokil Initial were up to £77 million, an increase of 39 per cent, with revenues decreasing by 2.3 per cent to 31.23 billion.
The increase in profits despite the drop in revenues was attributed to cost cutting moves across the business. In its statement Rentokil Initial said it was ahead of its savings target of £75 million following savings of £40 million having been made through changes in the supply chain and the redundancies at City Link.
CIO of Rentokil Initial Bryan Kinsella (profiled here) has been driving down IT costs and in the interim statement the company said it was looking to "increase functional expertise" in IT, HR, finance, customer care, procurement, supply chain, sales and marketing.
Earlier this month Kinsella (pictured) said Rentokil Initial's strategy of moving its email onto the Google platform will be completed by the end of the year.