Rentokil has branched out from pest control to corporate security

Brian McGowan said he will look at "every aspect of the company's operations" in the light of last week's profit warning.

Mr McGowan said the decision to replace Sir Clive, once dubbed "Mr 20%" for his earnings record, had not been easy.

But a "fresh perspective" and new leadership was needed, he said.

Last week, the company announced that profits in the first four months of the current financial year would be 6.2% down on the previous year.

Mr McGowan said the figures were extremely disappointing despite that fact that Rentokil is still expected to pull in a full-year profit of �350m.

Facing the future

Commenting on the ousting of Sir Clive, Mr McGowan said at the company's annual meeting: "Making this sort of decision is never easy and none of us derived any pleasure from the events of last week."

"The focus must now be on the future of the business. Despite all the press comment we must not forget that Rentokil Initial remains a wonderful business."

But the group's AGM statement was not enough to allay the fears of investors.

Shares of Rentokil Initial slipped lower, prompting Deutsche Bank to reiterate its 'sell' stance.

Despite guaranteeing to pay a 6.71 pence dividend for 2004, representing 10% year-on-year growth, the group failed to comment on its future dividend policy.

Rentokil provides pest control, washroom, security guarding and other services in 40 countries.