March 25, 2020 / 7:39 AM / 10 days ago

BRIEF-Rentokil Initial Withdraws Previous Guidance For 2020

March 25 (Reuters) - Rentokil Initial PLC:

* TRADING UPDATE

* EXPECT ONLY A SMALL NET IMPACT ON BUSINESS IN QUARTER FROM CORONAVIRUS

* NOW EXPECT A MUCH MORE SIGNIFICANT IMPACT ON OPERATIONS AND PERFORMANCE IN Q2 AND BEYOND

* WITHDRAWING PREVIOUS GUIDANCE FOR 2020

* SUSPENDED M&A PROGRAMME AND HAVE ALSO DECIDED TO SUSPEND DIVIDEND PAYMENTS

* DRAWN DOWN ON REVOLVING CREDIT FACILITY MEANING THAT GROUP NOW HAS CASH FUNDS AVAILABLE OF OVER £650M

* PAY CUTS HAVE BEEN MADE ACROSS BOARD AND ALL SENIOR MANAGEMENT GRADES

* COST REDUCTION MEASURES WILL REDUCE OSTS IN 2020 BY C.£100M.

* ALL DISCRETIONARY CAPEX HAS BEEN SUSPENDED ; EXPECT CAPEX TO REDUCE BY AT LEAST £75M IN 2020 TO BELOW £200M Source text for Eikon: Further company coverage:

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