Going Down: Rentokil Initial

RENTOKIL INITIAL, the support-services company, said profits this year are likely to increase between 10 per cent and 15 per cent, below the company's 20 per cent target, as sales growth decelerates. The shares fell 25 per cent.

Analysts said the expected sales growth probably isn't enough to offset lower returns from the reorganisation initiatives stemming from the takeover of BET in April 1996. "This was the year they said they would go for sales growth and the obvious conclusion is that not so much is coming through now from the BET rationalisation - there isn't enough sales growth to make up for that," said Geoff Allum, an equities analyst at Henderson Crosthwaite.