Rentokil Initial blamed its own operational failings for a 74 per cent drop in third- quarter pre-tax profits, but warned that the economic environment was hampering the new management’s efforts to turn the conglomerate round.

Losses at the City Link parcel delivery business and UK Washrooms, a cleaning services group, dragged down pre-tax profits for the three months to the end of September from £41m to £10.8m. Revenues on continuing operations rose 7.2 per cent to £601m.