Expect news this month on Rentokil Initial plc’s strategic review of its electronic security business.
The board will provide shareholders with an update regarding developments at Rentokil Initial’s preliminary results announcement on February 22.
Initial Electronic Security, the parent firm says, has performed strongly as part of the company, with a significant recurring contracted revenue base, strong margins and high cash generation.The board however says it considers that the electronic security business may have greater strategic value to third parties.
In the year to December 2005, Rentokil Initial reported that its electronic security business had £37.2 m of adjusted operating profit (before amortisation and one-off items) on £262.7 m of turnover (at constant exchange rates) and revenue grew by 7.8pc in the nine months to 30 September 2006. Initial Electronic Security is based in Blackburn, Lancashire.
