Interim results from Rentokil Initial were always going to disappoint but this morning’s announcement from the pest control-to-parcel delivery group was even worse than feared and the outlook for the business remains bleak.

The company has issued four profits warnings since December, warned investors of a lengthy recovery plan and cautioned that there would be a substantial dividend cut.

Alan Brown, the chief executive appointed earlier this year to turn the company around, has been at pains to point out that rescuing Rentokil will take the best part of five years, with many predicting that a full recovery could take even longer.

However, just as Mr Brown gets his feet under the desk, the wider economy turns sour, making his job even tougher.

Moreover, the company wants to refinance its debts and the City is speculating that a rights issue is a distinct possibility as the company is in danger of breaching its covenants. A cash call may be avoided only if looked-for improvements to its parcels business, City Link, come through in time.

Existing investors in this company have little to lose, but new investors should not be tempted by the top-notch CVs of the new management team. Theirs is a tough job that will take time and the news is undoubtedly likely to get worse before it gets better.

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