Business services group Rentokil Initial has made a further step in its £600 million disposal programme with the sale of two businesses for £118 million.

The group is selling its US personnel services business for £43.3 million to an equity investor group. It is also to sell its international container company for £75 million to rival Yardbrace. The two businesses had together generated pre-tax profits of £20.8 million on sales of £296 million last year.

Chief executive Sir Clive Thompson said: "These sales represent a further step in our disposals of non-core activities to bring total sales proceeds to date to £488 million, in line with our target of achieving proceeds of at least £600 million."

Rentokil is currently selling its most periodical businesses to focus on the core areas of hygiene services, pest control, property services, security and next day delivery.

Sir Clive also said another transport business and plant hire business remained on the shelf. "We're in discussions with various buyers," he said. "We've been talking for some months and we would expect to make further announcements in the next few weeks and months."

These sales come almost a year after Sir Clive abandoned Rentokil's annual earnings growth target of 20 per cent a year after having met the target for 18 years.

Anna Lagerkvist