City Link's recovery well on track
Initial Rentokil, parent company of delivery firm City Link, says that the courier is set to show material improvements in the third quarter of this year.
Sales at Link were up 3.5 percent on the last quarter and the operating loss of £18.5 million was a 3.9 percent improvement on the second quarter of last year. The transformation to profitability is far from complete though, as the new figures simply represent reduced losses.
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Rentokil saw operating profit fall from 6.3 percent to £87 million in the second quarter.
However the turnaround in fortunes of City Link spells the end of Rentokil’s long running troubles with its subsidiary.
Chief executive of Rentokil Alan Brown said: "City Link's recovery plan is progressing in line with expectations, both in terms of financial performance and underlying action plan.
"We expect losses to reduce further in the third quarter and for the business to be profitable in the fourth quarter."
Those in charge of Rentokil have attributed the companies’ new lease of life to its innovative management team who has pushed for greater efficiency across the board, as well as better route handling.