City Link’s performance improved during the first quarter, according to the latest trading statement from parent Rentokil Initial, but so the operating loss also rose.
Alan Brown, CEO of Rentokil Initial, said: “City Link losses were higher than prior year but performance improved through the quarter as the new management team gained traction. We expect a significant improvement in year-on-year financial performance in the second half.”
City Link’s sales were up 1.7 per cent on last year at £73.5m but the operating loss was up 18.7 per cent to £12.7m.
Brown said: “Assuming economic conditions do not deteriorate further, we anticipate continued organic growth and that this, coupled with productivity improvement at City Link, will convert into a year-on-year improvement in financial performance in the second half of the year.”
