The Brown bounce is not just a Westminster phenomenon. Shares in Rentokil ticked more than 3 per cent higher as Alan Brown, the new chief executive of the parcels to pest control conglomerate, delivered third-quarter figures that were no worse than expected.

Revenues were flat, and adjusted pre-tax profits in the three months to September 30 were down 60 per cent, but Mr Brown avoided the necessity of another profit warning - which would have made five in a row.

Better still, operating margins are showing signs of steady recovery: from 6.5 per cent in the second quarter to 7.5 per cent in the third. In the meantime, the refinancing concerns that have recently troubled the shares have been assuaged for now: the £250 million bond that expires this month is being repaid out of existing bank facilities, which means Rentokil's next refinancing does not fall until early 2010. Meanwhile, yesterday’s interest rate cut will provide a degree of relief on the floating rate portion of the company's £1.2 billion of net debt.

But Mr Brown is by no means out of the woods. CityLink, Rentokil’s loss-making parcels division, remains the biggest drag, and its busiest period - the run-up to Christmas - still lies ahead. And although Rentokil has fared well in previous downturns, it is still too early to assess how resilient it can prove when tougher times are coupled with a radical restructuring.

Last month’s 38p - a 70 per cent fall since the start of the year - may well prove to have been the bottom for the shares. But at 48p, or nine times next year’s earnings, all but the bravest investors might wait to ensure that the fourth quarter does not bring further warnings before buying back in.

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