Rentokil Initial in talks to refinance debt

“Organic growth has continued to progress year on year, despite challenging markets in southern Europe and softening conditions in northern Europe, including the UK,” said Mr Brown.

“We anticipate that continued growth, coupled with further productivity improvement at City Link, will deliver year-on-year improvement in financial performance at constant exchange rates in the third quarter, and most notably in the fourth quarter this year.”

He said City Link is “two quarters away” from being turned around after its losses in the second quarter were cut 18pc to £5.8m.

The division has dogged the company for years but Mr Brown is driving a turnaround plan that could deliver a profit by the fourth quarter of 2012.

“If we do make a profit in Q4 then we will be pretty confident about making money in 2013,” he added.