By Rachel Cooper, City Reporter Published: 8:57PM GMT 19 Feb 2010
Rentokil Initial
Despite a 185pc rise in full-year pre-tax profits for the year to £65m from £22.8m, Alan Brown, the chief executive brought in revive Rentokil"s fortunes in April 2008, said there would be no shareholder payout to preserve its balance sheet.
"By and large I think our shareholders would be happy to forego a dividend, certainly for another 12 months or so," he said.
Water companies cant wash away FTSEs rise Hambro passes final dividend Rentokil profits dive, dividend axed Rentokil shares tumble after scrapping dividend Britains rat infestationRentokil saved £82m last year after Mr Brown implemented a cost-focused five-year turnaround plan, which included reducing expenditure by £54m in its troubled City Link parcel delivery arm.
But on Friday, there was good news for City Link as it returned to profit for the first time in two years. Mr Brown said the reversal in fortunes had been achieved by focusing on "operational excellence and engaging front line staff".
He has earmarked another £75m in cost savings, but said the group was also looking to boost its textiles and wash-room division by making acquisitions abroad.
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