Turnover and profit at Rentokil’s facilities management business declined in 2000. Sales were down 6.2% at £445.3m and profits regressed by 29.3% to £35.7m. However, the company says it is confident that FM is a growth area.

Rentokil is continuing to build relationships with sub-contractor partners and major buyers of outsourced services in the UK and says this is generating the credibility to manage major facilities management contracts. The company won contracts in the second half with a whole life value of £130m over three years, which will benefit this year’s trading.

At the group level, Rentokil’s restructuring disposed of nearly a third of its 1999 sales and a fifth of 1999 profits. The company says this makes it very difficult to compare full year's results for 2000 and1999 and concentrates on what it calls ‘core activities’ continuing into 2001.

On this measure turnover was up slightly at £2,067.4m (£2,012.7m) and profits down slightly at £413m (£424.4m). The ‘as reported’ figures were: turnover £2,633.9 (£3,039.2m) and profit £401.1m (£541.1m)

Richard Byatt