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Where can you see this going, i'm looking for 101p to take a profit.
since the start of the year and not all up up up either.
I am now looking to short RTO for the medium term. Ian
the record date for the recommended final dividend is 10 April 2012 and not 10 May 2012
By turkey like this I meant City Link, not RTO as a whole.
Possibly because the Road Transport industry is full of guys who can convince the unwary that they are the one or two who can turn a turkey like this into a profitable business. Logistics!! Pah!
Why does the company not accept that buying this outfit was a mistake, cut their losses and sell it and get on with what they do best, providing pest control and other services excluding haulage by another name.
I use City Link daily for work, they do have problems, but overall a small percentage, what does let them down is there customer service team, they are slow, un-imformative and if there is a serious mistake or complaint they ignore emails completely (and the 2nd and the 3rd), hoping that we will go away! but for the price, collection and next day sevice, they are the most cost effective for us.
City link continues to be the main problem, resumption of dividend payment however small is still welcome, the PG downgrade with a TP of 62p maybe tested afterall
OUTLOOK FOR 2012 Our Operational Excellence strategy, which focuses on capability development across all functions - is delivering increasing revenue growth in Pest Control, Hygiene, Textiles and Facilities Services categories despite tough market challenges. We are particularly pleased with the rates of growth achieved toward the end of Q4, which have continued into the early part of 2012. The investment in rollout of the Olympic initiatives is likely however to limit profit growth in these categories to mid single digits for the time being. City Link continues to disappoint. While Q4 volumes grew 8% and revenue by 0.5%, losses were £3.1m greater than Q4 2010 due to low productivity, driven in part by conservative resource planning for the Christmas period. The financial performance of the business will remain poor in H1 2012, however, we remain committed to resolving the key revenue and cost control issues facing the business. We are encouraged by the immediate impact of the new City Link CEO and CFO and by the quality of the improvement plan currently being implemented. Progress made across the rest of the group and continued strong operating cash flows has given the board sufficient confidence to recommence dividend payments with a final dividend of 1.33p per share.
Alan Brown, Chief Executive Officer of Rentokil Initial plc, said: "Our Operational Excellence strategy - which focuses on capability development across all functions - is delivering increasing revenue growth in Pest Control, Hygiene, Textiles and Facilities Services categories despite tough market challenges. I am particularly pleased with the rates of growth achieved toward the end of Q4, which have continued into the early part of 2012. The investment in rollout of the Olympic sales growth initiatives is likely however to limit profit growth in these categories to mid single digits for the time being. "City Link continues to disappoint. While Q4 volumes grew 8% and revenue by 0.5%, losses were £3.1m greater than Q4 2010 due to low productivity, driven in part by conservative resource planning for the Christmas period. The financial performance of the business will remain poor in H1 2012, however, we remain committed to resolving the key revenue and cost control issues facing this business. I am encouraged by the immediate impact of the new City Link MD and FD and by the quality of the improvement plan currently being implemented. "Progress made across the rest of the group and continued strong operating cash flows have given the board sufficient confidence to recommence dividend payments with a final dividend of 1.33p per share."
Full Year Highlights* · Revenue and profit growth in key Pest, Hygiene, Textiles and Facilities Services categories despite market challenges: - Initial Facilities revenue +7%, AsiaPac +4%, Pest Control (excl. Libya) +3%, Textiles & Hygiene +3% · Acquisitions performing well; contributing net £41m of revenue increase · Textiles & Hygiene Benelux turnaround delivered; back to growth in Q4 2010 · Despite progress on capability, City Link financial performance disappointing: £31.3m loss reflecting reduced revenue and poor productivity · £44m cost savings, but impacted by City Link; £50m savings target for 2012 · Operating cash flow £155m; refinancing of Revolving Credit Facility completed December 2011 · Resumption of dividend payments; proposed final dividend of 1.33p per share reflecting progress in Pest, Hygiene, Textiles, Facilities Services and strong cash flow
http://www.investegate.co.uk/Article.aspx?id=201203020700155485Y
Panmure Gordon downgraded its recommendation for Rentokil Initial (RTO) from "hold" to "sell" with a reduced target price of 62p, from 76p. The broker does not believe that the pest control company's City Link business will see much recovery in the near term, and is dubious as to whether it will ever reach previous levels of profitability. Additionally, with the UK and Europe accounting for around 80% of the group's revenue, Panmure expects to see increased pressure on volumes and prices.
Thats a hell of a sell target !
Peel Hunt initiates sell on Rentokil, target price 15p.
Rio Tinto is among the select group of companies that can reasonably be considered mining bellwethers. It is, therefore, useful to pay attention to its comments on the goings-on in the resources world, claims the Investment Column in The Independent, adding that the latest noises have been less than bullish. Rio's chief executive, Tom Albanese, warned that "continuing stresses in the Eurozone and a weaker outlook for the US economy are inevitably affecting customer sentiment, which has become more negative in recent months". Despite this, the Indy sticks with its "buy" recommendation as the long term trend towards greater consumption of commodities remains intact.
Rentokil Initial proposed acquisition adds building services capability Rentokil Initial plc (FTSE: RTO) today announces it has exchanged contracts with Managed Support Services plc ("MSS" or the "Company") for the acquisition of its building services division, MSS Facilities Management (the "Division") for a cash consideration of up to £6.5m (subject to a net asset adjustment at completion). The proposed sale is conditional upon the approval by the Company's shareholders in general meeting. The Division, which has 200 employees, has an approximate annual turnover of £22 million and operates from two principal trading sites in Manchester and London. The acquisition provides excellent synergies with Rentokil Initial's existing mechanical and electrical engineering building services business, which operates within the Initial Facilities division.
http://www.investegate.co.uk/Article.aspx?id=201111210700074150S
CEO has a target of getting the share price to 118p in 18 months to achieve his £20m bonus! Citi have been turned around, think i may purchase!
Evolution initiates Rentokil as neutral, target price 77p.
Rentokil Initial Buy 29-Sep-11 £83,312.29 Jeremy Townsend 113,273 @ 73.55p
Credit Suisse downgrades Rentokil Initial from neutral to underperform - target from 100p to 70p
RBS initiates hold on Rentokil Initial, target price reduced from 102p to 97p.
Alan Brown, Chief Executive Officer of Rentokil Initial plc, said: "In a difficult trading environment we have made good progress against our key objectives in H1, continuing to build capability and achieving organic revenue growth (excluding City Link) earlier than expected. "Textiles & Hygiene Benelux has performed consistently in line with plan over the past four months and will return to profit growth in H2. City Link has made considerable progress in operational and customer care systems and although its financial performance remains unsatisfactory, trading has been stable since February. "Our 2011 cost savings programme is on track but inflationary pressures are particularly evident in Textiles & Hygiene and Ambius. The pricing environment has eased slightly in continental European markets. "In City Link, I am encouraged by our strong operational progress and the new business pipeline, the combination of which should lead to improved year-on-year performance in Q4 though the full impact of our initiatives is unlikely to be felt this year. Elsewhere, we expect further progress across the group in H2 despite ongoing challenging conditions in some of our markets."