Rentokil Issues Another Profits Warning
Shareholders in Rentokil have again been left licking their wounds as the company issued its fourth profits warning in just eight months. While the group blames a failed attempt to reorganise the company and the economy, the situation does not look good for the longer term.
Rentokil has undergone numerous reorganisation and management changes over the last couple of years and yet shareholders have seen little if no benefit despite the millions spent on the changes. The group has forecast that profits for this year are likely to be some £35 million below analyst forecast which are currently in the region of £151 million. More worryingly the current management are blaming changes by former directors which saw responsibility for customer care taken away from employees at local level and moved higher up the management chain.
While there is no doubt that Rentokil has also been hit by the economic downturn the company is in serious trouble and losing what good will was left with investors and analysts. Quite where the group goes from here remains to be seen with many calling for a breakup of the company, something which may actually be taken out of the directors hands if takeover rumours turn out to be true.
Share this..
Related stories
2006 'bumper year for saving'
Britons saved £25 billion more in 2006 than they did in the previous 12 months, according to a new survey.Financial adviser website Unbiased says that in the last year a total of £136 billion was put away for a rainy day, compared to £111 in 2005.In addition, today's research reveals that levels of debt are showing signs of slowing, with the average UK resident borrowing 40p for every pound in...
Read MoreHow do you balance company and worker pension regulations?
As we covered in one of our earlier post, the CBI has recently been very vocal in support of UK businesses and a change in pension regulations. Historically companies were able to take a more long-term approach to their pension fund investments which allowed for short-term fluctuations such as recessions, as well as the boom times. However, in a bid to try and balance out and protect both pension...
Read MoreEconomic think tank suggests UK would benefit from falling oil price
A renowned economic think tank has today suggested that the UK economy would benefit from falling oil prices over the next three years. However, there may well be a sting in the tail if oil prices continue to fall with the possible onset of deflation. So how will this work?
If oil prices remain at lower levels then we should see prices in business stabilise and then hopefully pick u...
UK banks raise credit card costs
In a sign of the battle of wills between the government and the banking sector it has been revealed that the average credit card interest rate has risen from 17.2% to 17.6% during the period when UK base rates have fallen from 5% to 3%. The situation regarding store cards is even more concerning with some rates having peaked at 25% over the last few weeks.
This increase in credit ca...
Cabinet ministers embarrassed by expense leaks
As the Labour government appears to be lurching from one disaster to another there have been a number of damaging expenses leaks in relation to Cabinet Minister spending. It is reported that a number of senior ministers and the Prime Minister have made a variety of expense claims which while perfectly legal and within the regulations will cause outrage amongst UK voters.
Amongst the...