These results reinforce our expectations for the full year.

Our new business model, introduced in the second half of last year, has resulted in strong improvements in management performance. This new model involves revised budgeting procedures, new incentives, and a greater concentration upon sales and service productivity using new technology. Increased geographic density of customers, in order to further improve productivity, is a specific priority. e-Business initiatives continue to improve service, sales and procurement.

Specifically, turnover of continuing businesses increased by 8.6% to £1101.0m, up 7.7% at constant exchange rates. Operating profits of continuing businesses increased by 7.7% to £206.1m, up 8.0% at constant exchange rates.

Pre tax profit comparisons are difficult to make due to the sale of a large number of businesses in 2000 and the share buy-back programme increasing the company’s interest payments.

Earnings per share increased by 12.1% to 6.10p, benefiting from the good increase in operating profits, the strong cash flow and the share buy-back programme.

Hygiene Services was up by 10.1% in turnover at £333.6m and 10.3% in operating profits at £93.3m. Continental Europe was up by 16.3% in turnover at £190.6m, with strong performances in France, The Netherlands, Italy, Portugal, Spain and Switzerland. Germany was also strong, helped by last year’s acquisition. UK turnover was up by 2.8% at £98.4m, North America up 4.7% at £3.7m with a good performance in USA, and Asia Pacific up by 2.8% at £40.9m with sound performances in Australia, Malaysia, South Korea, Hong Kong, Indonesia and Thailand.

Security Services turnover was up by 4.3% at £247.3m with operating profits flat at £22.5m. Both turnover and operating profits were adversely impacted by the restructuring of our Belgian cash-in-transit business. Continental Europe turnover was up 1.1% at £56.5m with good performances in France and The Netherlands. North America turnover was up by 6.3% at £72.1m with a good performance in USA. UK turnover was up by 4.7% at £118.7m.

Pest Control Services turnover was up by 4.3% at £100.4m and operating profits up by 8.0% at £36.6m. UK turnover was up by 2.1% at £33.5m and Continental Europe up by 6.1% at £42.9m, with good performances in France, Ireland, Italy, Portugal and Norway. North America turnover was up by 2.9% at £7.7m and Asia Pacific and Africa turnover up by 4.5% at £16.3m, with good performances in South Africa, Thailand and Indonesia.

Tropical Plants turnover grew by 33.0% to £60.4m and operating profits by 6.9% to £9.3m. North America turnover was up by 52.2% at £36.9m, helped by last year’s acquisition in USA which, itself, adversely impacted on operating profits due to a number of loss making branches which are being restructured over the next nine months. Continental Europe turnover was up by 23.9% at £11.8m with excellent performances across the region. UK turnover was flat at £6.5m in comparison with a very successful performance in 2000 linked to millennium celebrations. Asia Pacific turnover was up by 2.6% at £5.2m with a sound performance in South Africa.

Conferencing turnover grew by 12.5% to £36.1m with operating profits up by only 5.6% to £13.3m due to first time impact of FRS 15 and set up costs of a number of major new developments.

Parcels delivery turnover was up by an outstanding 32.5% at £91.0m with operating profits at £12.6m up by 35.5% with our UK business enjoying the benefits of a number of new and former customer gains and productivity benefits from our new distribution hub.

Facilities Management continued to improve, with the decline in turnover caused by the remnants of the two large contracts lost in 1999 slowing to 3.3% and with operating profits down by 3.6% to £18.5m. New contract gains should produce growth in turnover in the second half.

Geographic Commentary (at constant exchange rates)

As a result of the major restructuring of 2000, the company’s activities should be resilient to any downturn in the world’s economies.

UK turnover grew by 3.7% to £540.0m and operating profits by 3.6% to £107.5m. Hygiene turnover was up by 2.8% at £98.4m, Security up by 4.7% to £118.7m, Tropical Plants flat at £6.5m, Pest Control up by 2.1% at £33.5m, with Conferencing up by 12.5% to £36.1m, Facilities Management improving and excellent growth from Parcels Delivery.

Continental Europe turnover was up by 11.6% to £323.5m with operating profits up 14.1% to £64.6m. Hygiene turnover was up by 16.3% to £190.6m, Security up by 1.1% at £56.5m, Tropical Plants up by 23.9% to £11.8m and Pest Control up by 6.1% to £42.9m.

North America turnover was up by 13.3% to £159.5m and operating profits by 2.2% to £9.4m. Hygiene turnover was up by 4.7% to £3.7m, Security was up by 6.3% to £72.1m, Tropical Plants up by 52.2% to £36.9m and Pest Control up by 2.9% to £7.7m.

Asia Pacific and Africa turnover at £78.0m was up by 9.1% and operating profits by 15.5% to £24.6m. Hygiene turnover was up by 2.8% to £40.9m, Tropical Plants turnover up by 2.6% to £5.2m, with Pest Control turnover up by 4.5% to £16.3m.