Boss resigns at Rentokil's embattled City Link
Rentokil Initial said the boss of its troubled parcel delivery service City Link had stepped down amid ongoing trading woes at the division.
Wrong turns: Last month the firm closed too many depots and cut too many staff
City Link managing director Stuart Godman resigned by 'mutual agreement' and Rentokil chief executive Alan Brown has taken over the running of the embattled company until a replacement is appointed.
Rentokil said difficult trading conditions meant City Link's performance in 2010 was unlikely to improve on the previous year, when it made adjusted operating losses of £2.7m.
The news suggests a worsened performance for City Link in the final quarter of the year.
It narrowed its operating losses by £2.3m to £4.7m in the first half and reported operating losses of £1.3m in the third quarter, which were the same as last year.
City Link last month admitted it had gone too far in closing depots and cutting staff and had been forced to outsource work to more expensive third party firms.
Service levels had remained excellent in the period, apart from in the past two weeks which had been affected by the snowy weather, it said today.
However, Rentokil said its profits expectations for the year remain unchanged as the rest of the group, which includes pest control and washroom services, compensates for City Link's losses.
Rentokil's shares were down by 1% following the announcement.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- How to invest for income and growth: SAINTS' James Dow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Land Rover unveil newest all-electric Range Rover SUV
- UK Government sells another chunk of NatWest shares
- MARKET REPORT: FTSE falters despite UBS call to buy...
- Anglo strikes out alone - but can it survive a bid...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- London's 'Mr Super Prime' to take centre stage in...
- Phoenix Group finance chief to step down from insurer
- A MILLION more people have taken on mortgages they will...
- Used car marketplace Cazoo looking for buyers as it nears...
- Cerillion boosted by $11.1m contract with provider of...
- US owner of Boots steps up efforts to find a buyer for...
- Diploma shares top FTSE 100 risers after firm raises...
- How reliable are the most popular used cars? Here's how...
- Former Chancellor Nadhim Zahawi to chair Very Group
- Taxpayer stake in NatWest falls below 27% as Treasury...
- I repeatedly bail out my partner from his financial...
- BUSINESS LIVE: Nadhim Zahawi to chair The Very Group;...
- Evri issues warning over huge rise in smishing scams -...