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

The group revealed that pre-tax profits before one-offs for the six months to 30 June fell 20% to �135.4m compared to the same period last year.

The company also hinted that it was not interested in any takeover approaches.

Earlier in the week, businessman Gerry Robinson had hinted he was planning to make an offer to the firm.

The firm, known for its pest control business, has suffered in recent years - losing both its chairman and chief executive in 2004 following poor results and a profit warning.

Under pressure

In May it warned that tough competition and a drop in customer spending meant it would put in a weaker performance this year than in 2004.

As a result a new chief executive, Doug Flynn, was brought in and embarked on a comprehensive review of the group.

"We believe we know what the issues are and the necessary actions to achieve a turnaround have commenced," Mr Flynn said in a statement.

"Throughout everything we have done, we have been open minded on how to deliver shareholder value. We have a great opportunity to revive this business and I intend to take it."

Following the review, the company has now decided to sell-off its Initial Style Conferences division, which provides training and conference facilities in the UK.

Rentokil said it had targeted the business, which has 29 centres around the country, as it operated on a stand-alone basis which would make it easy to divest.