Rentokil Initial is one of the largest business service companies in the world, with some 92,000 employees, providing a range of support services. Our business operates in four markets: Hygiene, Security, Facilities Management and Parcels Delivery.

Financial Highlights
.         Revenue up in all divisions: Q4 up 17.5%, full year up 13.2%
.         Organic revenue: Q4 up 2.2%; full year up 3.1%
.         Contract portfolio up in all divisions
.         Further progress in contract retention, at 88.5% for full year vs.
          87.1% last year
.         Q4 adjusted operating profit and adjusted profit before tax up 4.3%
          and 1.0%
.         Full year adjusted operating profit and adjusted profit before tax
          both down 6.2%
.         Profit for year from continuing operations £154.3m (2005: £158.0m)
.         Dividend for year maintained at 7.38p

Operating and Strategic Highlights
.         Good operational progress with major restructuring in UK Pest Control
          and Washroom
.         Economic conditions continue to challenge European Textiles & Washroom
          Services
.         Continued investment in strong growth markets - particularly in Pest
          Control, Parcel Delivery and Asia Pacific
.         71 acquisitions completed in year for total spend of £418m; disposal
          proceeds of £144m
.         Integration of Target Express on track and Parcel business performing
          strongly
.         Strategic review of Electronic Security: formal sale process commenced    January 2007
 

Doug Flynn, Chief Executive Officer of Rentokil Initial plc, said:

'In 2006 we made good progress against our stated objectives. We have improved customer retention rates in all our divisions which in turn has helped drive strong revenue growth.  Our profitability is starting to improve in many businesses and the full year results were in line with expectations.

'We are seeking to rebalance the portfolio towards future growth and I am pleased with the progress we have made in building leadership positions in markets around the world through a combination of acquisitions and operational improvements.

'We are seeing good momentum across large parts of the group and overall we expect 2007 to be a year of stabilisation. However, there remains much to do  In particular, we are focused on our Textiles and Washroom Services operations in general and especially in the UK and France.  I am confident that the changes introduced will deliver results in all our businesses. This will not happen overnight but the right team is now in place and the right actions are being taken.'

Financial Summary
                                                          Fourth Quarter                         Full Year

£million
                                                   2006   2005    change          2006      2005    change

Pro forma Continuing Operations1

At 2005 constant exchange rates2

Revenue                                           598.7  509.5     17.5%       2,134.4   1,885.2     13.2%

Operating profit before amortisation of            72.4   72.4         -         277.4     290.3    (4.4%)
intangibles3

Add back: one-off items                            16.7   13.0     28.5%          23.6      30.5   (22.6%)

Adjusted operating profit4                         89.1   85.4      4.3%         301.0     320.8    (6.2%)

Share of profit from associates (net of tax)        0.4    0.5   (20.0%)           2.1       2.2    (4.5%)

Interest                                         (16.4) (13.5)   (21.5%)        (51.7)    (54.9)      5.8%

Profit before income tax3                          56.4   59.4    (5.0%)         227.8     237.6    (4.1%)

Adjusted profit before income tax4                 73.1   72.4      1.0%         251.4     268.1    (6.2%)

Continuing Operations1

At actual exchange rates

Revenue                                           590.2  509.5     15.8%       2,124.7   1,885.2     12.7%

Operating profit before customer list              70.8   72.4    (2.2%)         275.0     290.3    (5.3%)
amortisation

Amortisation of intangible assets5                (8.8)  (4.7)   (87.2%)        (25.9)    (20.2)   (28.2%)

Operating profit                                   62.0   67.7    (8.4%)         249.1     270.1    (7.8%)

Share of profit from associates (net of tax)        0.4    0.5   (20.0%)           2.0       2.2    (9.1%)

Net interest payable                             (16.6) (13.5)   (23.0%)        (52.0)    (54.9)      5.3%

Profit before income tax                           45.8   54.7   (16.3%)         199.1     217.4    (8.4%)

Free cash flow6                                                                  128.6     160.4   (19.8%)

Basic earnings per share (continuing operations)                                 8.43p     8.60p    (2.0%)

Dividend per share (proposed)                                                    5.25p     5.25p         -
 

1All figures are for continuing operations and are unaudited.  The UK linen and workwear business has been treated as discontinued along with the UK, Canadian, Belgian and US manned guarding businesses. See note 6

2Results at constant exchange rates have been translated at the full year average exchange rates for the year ended 31 December 2005. £/$ average rates: FY 2006 1.8469; FY 2005 1.8217. £/? average rates: FY 2006 1.4659; FY 2005 1.4598.