Business
Review Electronic Security
Review Electronic Security.
About this update from Rentokil Initial Plc
[{"type":"text","content":"\n Rentokil Initial PLC\n30 November 2006\n\n\n\n\n30 November 2006\n\n\n\n Strategic Review of Initial Electronic Security\n\n\n\nRentokil Initial plc (the 'Company'), today announces that, in addition to this\nmorning's announcement regarding the acquisition of Target Express Holdings Ltd,\nit is commencing a strategic review of its market leading electronic security\nbusiness.\n\n\n\nInitial Electronic Security is a well managed business and has performed\nstrongly as part of the Company, with a significant recurring contracted revenue\nbase, strong margins and high cash generation. In addition, it is well\npositioned to be part of further sector consolidation. Notwithstanding this,\nthe Board considers that the electronic security business may have greater\nstrategic value to third parties and therefore wishes to explore alternatives\nfor realising this value. This is consistent with the Board's strategy to focus\nthe Company's resources on those businesses where it believes it can create the\ngreatest value and thereby deliver the best returns for shareholders.\n\n\n\nInitial Electronic Security is a leading provider of electronic security\nservices to commercial and public sector customers in the UK, France, the\nNetherlands and the USA. It mainly provides installation, maintenance and\nmonitoring services for electronic security systems including intruder alarms,\nfire alarms, CCTV and access control. It also provides integrated security\nsystem solutions on more complex security projects for corporate organisations,\nprivate individuals and government facilities globally.\n\n\n\nIn the year to 31 December 2005, Rentokil Initial reported that its electronic\nsecurity business had £37.2 million of adjusted operating profit (before\namortisation and one-off items) on £262.7 million of turnover (at constant\nexchange rates) and revenue grew by 7.8% in the nine months to 30 September\n2006. Initial Electronic Security is headquartered in Blackburn, Lancashire.\n\n\n\nThe Company has appointed Greenhill to assist in the strategic review.\n\n\n\nThe Board will provide shareholders with an update regarding these potential\nstrategic developments at Rentokil Initial's preliminary results announcement in\nFebruary 2007.\n\n\n\n\n\n - Ends -\n\n\n\n\n\nNotes to Editors\n\n\n\nInitial Electronic Security operates as Initial Electr...