Pest control and parcel delivery group, Rentokil reported more than 50 percent increase in the earnings over the previous financial year. Despite of this increase, the company canceled the dividend for the year 2009 due to economic uncertainty and desire to strengthen the balance sheet and financial position.

Company decision on the dividend along with cost cutting measures taken by the company will help it to retire £125 million credit facility in the September a year before its maturity. The company also plans to close five plants across Belgium and France in the coming year and is streamlining other operations across Europe.

According to Alan Brown, Chief executive of the company, "Although we see no easing in economic conditions across most of our markets this year, our objectives are to deliver modest revenue growth, take out more costs and make further improvements in customer service and responsiveness."

Mr. Brown added that Rentokil plans to make small acquisitions soon and looking up for more small deals in emerging markets such as the Middle East. At the same time he ruled out an equity fund raising program to strengthen the group's financial flexibility.