RENTOKIL Initial said the suspension of its rat-catching contract in war-torn Libya triggered a drop in revenues at its pest control business.

The company said sales in the pest control division were down by 2.6% to £132.8m in the three months to March 31 after the deal with Libya’s government to tackle a dangerous rodent infestation in the capital Tripoli was put on hold.

Rentokil was already at loggerheads with the North African state over delayed payments for the contract, but the violent civil war which broke out in February has seen the agreement put on ice.

Elsewhere, Rentokil’s ailing City Link delivery business reported a first quarter operating loss of £10.7m, up from a £4.4m deficit the previous year. Group pre-tax profits fell by 10.1% to £27.4m.