Letter from the Chairman & CEO

SUMMARY

The board’s intention is to create a group capable of sustained profit growth. Following the work we have done over the past two years, we expect several of our key businesses to achieve this in 2007, particularly Pest Control (in Europe and the USA), Parcel Delivery, UK Cleaning and Asia Pacific. This will come from a combination of organic growth – from better customer retention rates and higher new sales – and acquisitions. At the same time we do not underestimate the need to resolve the issues affecting Textiles and Washroom Services.

A need for a clear growth trajectory firstly in revenue and then in profit has been behind our thinking and actions in our business operations and acquisitions and disposals. A key part of that has been much greater focus on customers – on identifying their needs through customer segmentation and through improving service levels. Our marketing and selling is getting better and we are broadening our routes to markets.

Finally, we asked a lot from our people in 2006 and we are proud of the way they stepped up to the challenge.We extend our thanks to each of them for their hard work and continuing commitment.