Pest control experts Rentokil Initial have pleased investors with reports of encouraging trading.

In an update ahead of reporting its full-year results in February, the East Grinstead-based group said turnover for the ten months to October 31, was up 7.9 per cent against the same period last year, while pre-tax profits rose 9.5 per cent.

For the full year, it expects good organic growth in turnover and pre-tax profits.

However, the group cautioned that this year's results would probably be hit by currency movements.

Sir Clive Thompson, the outgoing chairman and chief executive said: "As expected, these results and those for the full year, are likely to be adversely affected when translated at current rates of exchange for foreign currencies."

To drive the group's performance, former development director James Wilde, who is taking over from Sir Clive at the beginning of 2003, is carrying out a detailed business review, due to be announced in February.

He said this would address the group's organisation structure and efficiency but declined to comment on whether this would affect jobs.

Mr Wilde said: "2003 will see us continue with our strategy to drive turnover from continued organic growth, make bolt-on acquisitions, maintain and, where possible, improve profit margins and generate strong cash flow."

The strategy follows a shake-up of the business launched two years ago after Rentokil failed, for the first time in 17 years, to meet its growth targets.

The programme saw it sell off a tranche of businesses, secure acquisitions and focus on building up its now core areas, such as hygiene and security. The firm employs 100,000 people, half of them in the UK.

In August, it reported turnover up five per cent to £1.15 billion in the six months to June 30, while pre-tax profits jumped seven per cent to £186.6 million. Analysts are pencilling in pre-tax profits of £396 million for the year.