RENTOKIL Initial, the business service group, is set to conduct a make or break review of its loss making delivery arm City Link at the end of the year with a view to selling off the business.
The FTSE firm, which offers pest control, laundry and parcel delivery services, is gearing up to sell the business if figures from its key fourth quarter show it has performed badly. Revenues for City Link are expected to be at their peak in the fourth quarter on the back of the key Christmas delivery period.
Figures from the firm show it lost £18.5m on City Link over the first half of 2012. Management said in August it expected the firm to turn a profit in the fourth quarter.
City sources said options on the table if the business is sold could include a management buyout, trade sale or private equity sale.