SUPPORT services group Rentokil Initial unveiled a further shake-up at City Link after the delivery arm slumped to another loss.

Rentokil will shut the operation’s head office in Camberley, Surrey, by April and move jobs to Heathrow.

It will also invest in a new call centre as well as re-jig routes and make more use of its online operations.

Rentokil described City Link’s 2010 performance as particularly disappointing – as December’s severe weather added to existing operational failings.

Losses in the final quarter reached £3.6m and meant the deficit for the year widened to £9.6m from £5.6m in 2009.

The new improvement programme will be in place by October, but Rentokil warned of another disappointing financial performance from City Link until then.

It said: “Significant management change has taken place and a detailed operating plan is now being pursued which should deliver substantial operational improvement prior to the Christmas seasonal peak.”

Despite the poor performance at City Link, Rentokil still posted group-wide profits 15% higher at £192.3m in 2010. Sales fell by 1% to £2.5bn.

Chief executive Alan Brown said Rentokil was half way through a five-year turnaround plan that had – in most cases – shown successful structural change.

He reported strong profits growth in pest control and facilities services, with earnings up 10% and 21.6% respectively.

City Link is being run by Mr Brown after its managing director Stuart Godman resigned in December.

The business has been restructured in recent months after it sold its Wednesbury hub and opened new centres in Warrington and Peterborough.

Three depots were closed and a combined depot for post operations opened, bringing total depot numbers to 75.

But Rentokil admitted that it axed too many City Link staff as part of its focus on cost cutting.

It now plans to employ more drivers to reduce its dependency on more expensive sub-contractors.

It will also appoint a customer care director as part of a drive to improve customer service and will launch a new service to allow customers to track the progress of their parcels online.

Shares in Rentokil closed 6% or 5.5p down at 92.5p.