Sir Clive Thompson
Rentokil Initial PLC
03 January 2003
3 January 2003
SIR CLIVE THOMPSON STEPS DOWN AS CHIEF EXECUTIVE OF RENTOKIL INITIAL
Rentokil Initial, the FTSE 100 business support services giant, confirms that
with effect from the beginning of January 2003, Sir Clive Thompson steps down as
Chief Executive. He is succeeded by James Wilde, who was appointed Chief
Executive Designate at the time of the company's AGM last May.
Sir Clive, who has been the FTSE 100's longest serving and one of the most
successful chief executives, will remain as Chairman, a role he assumed
following the death of Henry King in March 2002.
Sir Clive held the role of chief executive for exactly 20 years, having been
appointed on 1st January 1983,when he stated that the company's objective would
be to increase profits and earnings per share by 20% per annum. The company then
enjoyed 17 years of 20% plus growth in profits and earnings per share to become
the world's largest business services company and earning Sir Clive the
sobriquet 'Mr Twenty Percent'
During this long period, the company grew rapidly as it diversified away from
pest control and property care into security, hygiene, tropical plants, parcels
delivery, conferencing and facilities management. It also developed
geographically throughout North America, Europe and Asia Pacific, and in the
process, made some 400 acquisitions including the hostile take-overs of
Securiguard in 1993 and BET for £2.2 billion in 1996.
In 1994, the company was voted 'Britain's Most Admired Company' and in 1996 Sir
Clive was knighted for services to industry.
From 1998 to 2000, Sir Clive was a high profile President of the CBI - the first
acting Chief Executive to undertake the dual roles. During his Presidency, the
CBI negotiated a number of major issues with the incoming Labour Government -
including the introduction of the Working Time Directive and the minimum wage.
Perhaps one of his most important legacies was the forging of a working
relationship for business with a Labour Government.
In 2000, after missing its 20% growth objective, which was reflected by a fall
in the Rentokil Initial's share price, Sir Clive conducted a total review of the
company's activities leading to Rentokil Initial adopting a new objective under
which the aim was to out-perform the Support Services sector. Arising from this,
the company undertook a major restructuring that included the disposal of a
third of its businesses: its plant hire, transport and recruitment activities,
were all sold due to their low cash generation, cyclicality or low market
growth, raising some £600m. As part of this plan, following the share for share
£1.4 billion acquisition of the Danish investment trust, Ratin, the company
launched a share buy-back programme and to date has bought back 35% of its
equity for £1.8 billion. This is believed to be the largest share buy-back in
British corporate history.
Since Autumn 2000 the refocused Rentokil Initial has delivered accelerating
growth, consistently meeting or exceeding market expectations. During this
period, Rentokil Initial's share price has increased substantially, thereby
outperforming both the market (FTSE 100) and the support services sector.
Rentokil Initial's share price has risen such that an investment of £10,000 in
January 1983,when Sir Clive was appointed, would be worth over £200,000 today.
For further information:
Sir Clive Thompson, Chairman 01342 833022
Charles Grimaldi, Corporate Affairs Director 01342 833022
Alex Mackey, Catullus Consulting 020 7736 2938
This information is provided by RNS
The company news service from the London Stock Exchange
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