5 positives from recent business decisions

Beneficial business decisions are producing positive financial results for Rentokil Initial.

11:25 06 May 2013

It’s difficult to take a loss when you’ve invested in a service or product that you believe in. Business has been difficult in many areas around the globe and the UK is no exception.

 

The business City Link, a division of Rentokil Initial, was finally sold off for a mere £1.

 

Though City Link lost Rentokil Initial an amount around £26m last year, Rentokil Initial has proven its financial success by still earning money even after considering the significant loss from its City Link division.

 

Here are five of the positive financial improvements we can expect, and in some cases have already witnessed as a result of this latest business decision to sell City Link.

 

• More resources to concentrate on Rentokil’s main concerns and to overcome challenges resulting from a weak European market.

 

• First quarter financial results show growth of approximately 11%, which takes into consideration any losses from the City Link entity. Given the past record of City Link, it’s safe to expect that the amount of growth may continue to increase for the second quarter.

 

• Improved results on the stock market are already evident with shares jumping from 5.05p to 101.7p.

 

• Ability to concentrate on maintaining and improving cash flow within the reduced business, with beneficial investments designed to carry the business through economic downturns.

 

• Provides a source for investors who will be able to get the shares while the value is jumping, but may still be able to profit from the investment with a company that is adept at managing its financial sector.

 

Rentokil Initial will be gaining much more attention, and investors will be certain to watch this company closely. Special attention will be given to how the company is able to fare without the financial losses, especially in light of the slow market they encountered for the previous quarter.