Review Electronic Security
Rentokil Initial PLC
30 November 2006
30 November 2006
Strategic Review of Initial Electronic Security
Rentokil Initial plc (the 'Company'), today announces that, in addition to this
morning's announcement regarding the acquisition of Target Express Holdings Ltd,
it is commencing a strategic review of its market leading electronic security
business.
Initial Electronic Security is a well managed business and has performed
strongly as part of the Company, with a significant recurring contracted revenue
base, strong margins and high cash generation. In addition, it is well
positioned to be part of further sector consolidation. Notwithstanding this,
the Board considers that the electronic security business may have greater
strategic value to third parties and therefore wishes to explore alternatives
for realising this value. This is consistent with the Board's strategy to focus
the Company's resources on those businesses where it believes it can create the
greatest value and thereby deliver the best returns for shareholders.
Initial Electronic Security is a leading provider of electronic security
services to commercial and public sector customers in the UK, France, the
Netherlands and the USA. It mainly provides installation, maintenance and
monitoring services for electronic security systems including intruder alarms,
fire alarms, CCTV and access control. It also provides integrated security
system solutions on more complex security projects for corporate organisations,
private individuals and government facilities globally.
In the year to 31 December 2005, Rentokil Initial reported that its electronic
security business had £37.2 million of adjusted operating profit (before
amortisation and one-off items) on £262.7 million of turnover (at constant
exchange rates) and revenue grew by 7.8% in the nine months to 30 September
2006. Initial Electronic Security is headquartered in Blackburn, Lancashire.
The Company has appointed Greenhill to assist in the strategic review.
The Board will provide shareholders with an update regarding these potential
strategic developments at Rentokil Initial's preliminary results announcement in
February 2007.
- Ends -
Notes to Editors
Initial Electronic Security operates as Initial Electronic Security Systems and
Initial Fire and Security in the UK, Initial Delta Security in France, Initial
Varel Security in the Netherlands and Initial Electronics and Initial Security
in the USA.
Rentokil Initial
Rentokil Initial is one of the largest business services companies in the world,
operating in all the major economies of Europe, North America, Asia Pacific and
Africa. The company has some 70,000 employees providing a range of support
services in over 40 countries where the 'Rentokil' and 'Initial' brands have
come to represent innovation, deep expertise and consistent quality of service.
Services include textiles and washroom services, pest control, tropical plants,
electronic security, parcels delivery and facilities services.
For further information, please contact:
Rentokil Initial plc
Malcolm Padley, Corporate Communications - 020 7866 3027/ 07788 978 199
Lisa Williams, Investor Relations - 020 7866 3028/07980 895 419
Brunswick Group
Kate Holgate - 020 7404 5959/07974 982402
Jon Rhodes - 020 7404 5959/07834 502361
A conference call for investors and analysts will be held today at 9:30am. The
dial-in numbers for this call are: +44 (0) 20 7365 1854 (UK) and +33 (0) 1 70 99
42 67 (France). A recording will be available on replay for the next three
weeks. The access numbers for this service are: +44 (0) 20 7806 1970 (UK), +33
(0) 1 71 23 02 48 (France), +1 718 354 1112 (US) and +852 3002 1607 (Hong Kong).
The PIN for all replay numbers is 7805044#.
This announcement contains statements that are, or may be, forward-looking
regarding the group's financial position and results, business strategy, plans
and objectives. Such statements involve risk and uncertainty because they
relate to future events and circumstances and there are accordingly a number of
factors which might cause actual results and performance to differ materially
from those expressed or implied by such statements.
This information is provided by RNS
The company news service from the London Stock Exchange
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