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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/rentokil-slowed-by-city-link-woes.jpg"><img class="alignnone size-full" title="Pest control company Rentokil Initial has unveiled a further restructuring of its ailing City Link delivery operation" src="http://londonglossy.com/wp-content/uploads/2011/02/min-rentokil-slowed-by-city-link-woes.jpg" alt="Pest control company Rentokil Initial has unveiled a further restructuring of its ailing City Link delivery operation"/></a></p>
<p>Rentokil Initial has unveiled a further restructuring of its ailing City Link operation after the delivery arm slumped to another loss.</p>
<p>The support services company will shut the operation&#8217;s head office in Camberley by April and move jobs to Heathrow, as well as launch investment in a new call centre, route optimisation and web programmes.</p>
<p>Rentokil described City Link&#8217;s 2010 performance as particularly disappointing as December&#8217;s severe weather added to ongoing operational failings. Losses in the final quarter reached £3.6 million and meant the deficit for the year widened to £9.6 million, from £5.6 million in 2009.</p>
<p>The new improvement programme will be in place by October but Rentokil warned of another disappointing financial performance from City Link until then.</p>
<p>The company said: &#8220;Significant management change has taken place and a detailed operating plan is now being pursued which should deliver substantial operational improvement prior to the Christmas seasonal peak.&#8221;</p>
<p>Despite the poor performance at City Link, Rentokil still announced that group-wide profits increased 15% to £192.3 million in 2010 while sales were down 1% to £2.5 billion. Rentokil chief executive Alan Brown said Rentokil was half way into a five-year turnaround plan that has, in most cases, shown successful structural change.</p>
<p>He reported strong profits growth in pest control and facilities services, with earnings up 10% and 21.6% respectively. City Link is currently being run by Mr Brown after its managing director Stuart Godman resigned by mutual consent in December. </p>
<p>The business has been restructured in recent months after it sold its Wednesbury hub and opened new centres in Warrington and Peterborough. Three depots were closed and a combined depot for post operations opened, bringing total depot numbers to 75.</p>
<p>But Rentokil admitted that it cut too many of City Link&#8217;s staff as part of its focus on cost cutting and it now plans to employ more drivers to reduce its dependency on more expensive sub-contractors. It will also appoint a customer care director as part of a drive to improve customer service and will launch a new service to allow customers to track the progress of their parcels online.</p>
<p>Rentokil said its pest control division was helped by an outbreak of bedbugs in cities including New York last year, while its UK business grew profits by 21%. Shares in Rentokil were down 8% following the release of the results, which were slightly below City profits expectations of £194.3 million.</p>
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