Support services company Rentokil Initial PLC (RTO.LN) is turning its restructuring focus to growth and the Royal Mail strike has helped reduce losses in its troubled parcels business, City Link, company Chief Executive Alan Brown said Friday. Brown said on a conference call to reporters that the company was is in need of a "strong and sustainable growth agenda." He will provide details at the full-year results but said that growth will mainly be achieved organically through marketing and sales initiatives starting with its largest business, the Pest & Washrooms.

The company has been undergoing a restructuring program after its troubled City Link parcels business sparked several profit warnings and a change of management.

Brown upgraded the forecast for City Link's full-year loss to GBP7 million from GBP12 million, after the company added some GBP1 million to GBP2 million to the bottom line and 5% to revenue, from the Royal Mail postal strike.

The chief executive said he didn't want to focus on snatching unhappy customers from Royal Mail at the time of the strike because they always go back after the strike is over.

--By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com
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