Pest control is one of Rentokil's best-known businesses

The firm's shares fell 8% after it forecast "a further deterioration in trading" in the first half of 2005.

It now expects 2005 as a whole to give a "weaker performance than in 2004".

Rentokil, which saw the departure of its chairman and chief executive earlier this year, warned there was no "quick-fix solution" to its problems.

Chairman Brian McGowan said he was "certain" the firm was "taking the right actions to return the company to future sustainable growth".

Difficult year

In a trading update, Rentokil said pre-tax profit for the first 10 months of the year was down 11.9% to �293.9m ($554m).

See Rentokil's latest share price

The firm also said it planned to sell the linen and garment elements of its UK hygiene business.

However, it reiterated that it had no plans to break-up the group. Earlier this year, Rentokil reviewed its operations and concluded that a break-up was not the best way out of its problems.

Rentokil's shares plunged in May when the firm issued a profit warning and ousted its chairman Sir Clive Thompson.

Sir Clive was once dubbed 'Mr 20%' during his time at Rentokil for his profits growth record.

Then in July, chief executive James Wilde left the firm, with new chairman Mr McGowan saying a "fresh pair of eyes" was needed.

Mr McGowan said he had "no specific news" about the hunt for a new chief executive, adding "the search could well take some time".