More drivers needed for City Link

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Support services firm Rentokil Initial is set to recruit hundreds of drivers for its struggling City Link delivery arm after admitting that previous job cuts had gone too far.

Chief executive Alan Brown will launch a national recruitment campaign in the new year after axing too many drivers from the business in a bid to cut costs and spending too much on more-costly sub-contractors.
Former ICI boss Mr Brown was drafted in more than two years ago to lead the revival of Gatwick-based Rentokil after recession and a botched expansion under previous management plunged City Link into the red.

The group on Friday posted a 16% rise in adjusted pre-tax profits to £57.3 million in the three months to September 30 after a rapid increase in calls to deal with bed bugs ensured strong growth at its pest control division.

But City Link reported an operating loss of £1.3 million for the quarter, which was flat year-on-year, due to an "extremely competitive market" and price-cutting across the industry.

Mr Brown said he expected the trading performance in the fourth quarter to remain difficult for City Link, but added that group full year performance was likely to be in line with market forecasts.

Although City Link is still making a loss, its year-to-date operating losses have improved by 28% on a year earlier, on the back of a structural reshuffle within the business.

The business closed and sold its Wednesbury hub and opened two new hubs in Warrington and Peterborough. Three depots were closed and a combined depot for post operations opened, bringing total depot numbers to 75.

The overall group performance was lifted by strong profit growth in the pest control division, particularly in the UK and US.

A spokesman for Rentokil said cities like New York have experienced an invasion of the blood-sucking bed bug - or Cimex lectularius - which can hide in headboards and behind wallpaper.