Trading Statement

Rentokil Initial PLC
03 December 2002

                                                               3rd December 2002


         TRADING STATEMENT FOR THE TEN MONTHS ENDING 31ST OCTOBER 2002
                     RENTOKIL INITIAL CONTINUES TO DELIVER
                                 STRONG GROWTH


Sir Clive Thompson, Chairman and Chief Executive of Rentokil Initial, said
today:-

'I am pleased to report that trading for the first ten months of this year has
continued to be encouraging with turnover and profits before tax in line with
our expectations. Earnings per share have continued to show excellent growth in
line with our expectations.

Specifically, at constant average exchange rates for 2001, turnover has
increased by 7.9% and profits before tax by 9.5% over the first ten months of
last year. This performance is comfortably meeting the medium term growth
opportunity which we stated in 2000 at the time of the major restructuring of
the company. As expected, these results, and those for the full year, are likely
to be adversely affected when translated at current rates of exchange for
foreign currencies.

Hygiene Services grew by 3.7% in turnover with similar growth in operating
profits, continuing to be driven by strong performances in Continental Europe.
UK Hygiene, which has been performing disappointingly, is now under the direct
management of James Wilde, Chief Executive Designate, with new senior management
in place.

Turnover in Security Services increased by 10.7% and while the growth in
operating profits was lower, due to the mix between electronic and the lower
margin manned guarding, it was nonetheless good. Continental Europe and North
America produced excellent performances with the UK growing strongly.

Pest Control Services increased turnover by 4.0% with similar growth in
operating profits arising from good performances in Continental Europe, North
America and Asia Pacific and Africa, with sound growth in the UK.

Tropical Plants Services declined in turnover by 3.1% with a somewhat larger
regression in operating profits. Although Continental Europe turnover growth was
excellent, North America, Asia Pacific and Africa, and UK remain disappointing.

Conferencing turnover grew by 3.4% with a flat performance in operating profits.
The new 30 year civil service contract is developing well.

Parcels Delivery turnover was up by 30.0% with, similarly, excellent growth in
operating profits. UK continued to perform excellently, with turnover up by
12.3%, as did our Southern African business, although the latter will be
substantially impacted by currency devaluation in the full year trading results.

Facilities Management turnover grew by 6.9% with good growth in operating
profits but, as expected, growing more slowly.

Since the beginning of the year 12 bolt on acquisitions have been made in our
Hygiene, Security, Pest Control and Tropical Plants businesses at a total cost
of some £33 million. These businesses represent £27 million of annual turnover.

Cash generation has continued to be strong.

Since August, as part of our share buy-back programme, 15.2 million shares have
been purchased at an average price of 211p. Using current borrowing rates and
market expectations for earnings per share in 2002, share purchases are
accretive to earnings per share up to 451 p per share.



Prospects for the Full Year 2002

For the full year, we expect to continue to generate strong operating cash flow
and good organic growth in turnover and pre-tax profits. The Board is confident
that 2002 will show excellent growth in earnings per share over the 13.3p
achieved in 2001, in line with market expectations.'



Prospects for 2003

James Wilde, Chief Executive from the beginning of 2003, said today:-

'Since June 2002 I have been responsible for all our operations on a day to day
basis and have been carrying out a detailed business review, the outcome of
which I will report to the market at the time of our Preliminary Results
announcement on 27th February 2003. This will address the following areas:-

1) The company organisation structure.

2) Ongoing efficiency improvements, concentrating on service provision.

3) Continuation of our improvements in sales and marketing and procurement.


2003 will see us continue with our strategy to:-

*  drive turnover from continued organic growth.

*  make bolt-on acquisitions primarily in Hygiene and Security in North America 
   and Continental Europe.

*  maintain and, where possible, improve profit margins.

*  generate strong cash flow.


On this basis, we aim for strong growth in turnover, profits before tax and
earnings per share in 2003, which could be further enhanced by the continuation,
as planned, of our share buy-back programme.'



Note

The above statement is made based on unaudited management accounts and at
constant rates of exchange, these being the average rates of exchange for
foreign currencies for the year 2001, as used in the 2001 Annual Report.



                                      END



For further information please contact:-

Sir Clive Thompson
Chairman and Chief Executive
J C F Wilde

Chief Executive Designate
R C Payne
Finance Director

C D Grimaldi
Corporate Affairs Director
Telephone: [phone]


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            The company news service from the London Stock Exchange