The company said pre-tax profits fell almost a quarter to £35.5million for the three months to March, thanks to seasonal losses at US pest control arm JC Ehrlich and parcel delivery group Target Express.

Chief executive Doug Flynn said restructuring costs in the UK pest control and washroom businesses had taken a toll but these changes were helping strengthen the group and the profits downturn was in line with expectations. “We are pleased with the progress being made,” he added. Revenues rose 24 per cent to £521.5million.

Mike Murphy of analyst Panmure Gordon said: “For the first time in years, management is maintaining guidance, which should be seen as a positive.”

The company made 11 acquisitions in the Asia Pacific region during the quarter. Its shares were up 2p to 175p.