Rentokil Initial Regulatory News (RTO)

30 Nov 2006 07:04

Rentokil Initial PLC30 November 2006 30 November 2006 Strategic Review of Initial Electronic Security Rentokil Initial plc (the "Company"), today announces that, in addition to thismorning's announcement regarding the acquisition of Target Express Holdings Ltd,it is commencing a strategic review of its market leading electronic securitybusiness. Initial Electronic Security is a well managed business and has performedstrongly as part of the Company, with a significant recurring contracted revenuebase, strong margins and high cash generation. In addition, it is wellpositioned to be part of further sector consolidation. Notwithstanding this,the Board considers that the electronic security business may have greaterstrategic value to third parties and therefore wishes to explore alternativesfor realising this value. This is consistent with the Board's strategy to focusthe Company's resources on those businesses where it believes it can create thegreatest value and thereby deliver the best returns for shareholders. Initial Electronic Security is a leading provider of electronic securityservices to commercial and public sector customers in the UK, France, theNetherlands and the USA. It mainly provides installation, maintenance andmonitoring services for electronic security systems including intruder alarms,fire alarms, CCTV and access control. It also provides integrated securitysystem 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 electronicsecurity business had £37.2 million of adjusted operating profit (beforeamortisation and one-off items) on £262.7 million of turnover (at constantexchange rates) and revenue grew by 7.8% in the nine months to 30 September2006. 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 potentialstrategic developments at Rentokil Initial's preliminary results announcement inFebruary 2007. - Ends - Notes to Editors Initial Electronic Security operates as Initial Electronic Security Systems andInitial Fire and Security in the UK, Initial Delta Security in France, InitialVarel Security in the Netherlands and Initial Electronics and Initial Securityin 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 andAfrica. The company has some 70,000 employees providing a range of supportservices in over 40 countries where the 'Rentokil' and 'Initial' brands havecome 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. Thedial-in numbers for this call are: +44 (0) 20 7365 1854 (UK) and +33 (0) 1 70 9942 67 (France). A recording will be available on replay for the next threeweeks. 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-lookingregarding the group's financial position and results, business strategy, plansand objectives. Such statements involve risk and uncertainty because theyrelate to future events and circumstances and there are accordingly a number offactors which might cause actual results and performance to differ materiallyfrom those expressed or implied by such statements. This information is provided by RNS The company news service from the London Stock Exchange