Remtokil Initial, the world's largest pest control group, has parted company with its chief executive James Wilde in a desperate bid to reverse its fortunes.

The departure of Mr Wilde, who has been at the helm of the East Grinstead company for 18 months, comes just two months after the firm ousted chairman Sir Clive Thompson.

New chairman Brian McGowan said the decision to replace Mr Wilde had the full support of the board as it believed "a fresh pair of eyes" was needed to reinvigorate the business.

Mr McGowan, who had been working with Mr Wilde on a strategic review, added: "There was a real frustration among much of the operational management.

"We needed to accelerate the speed of change and get things moving."

Mr Wilde stands to receive a £650,000 pay-off.

Rentokil said he had laid the groundwork for an improved performance by making a number of operational changes, such as investing in the sales force.

However, he faced criticism at the company's annual meeting, with one shareholder calling his presentation the worst he had heard in years.

Analysts say the latest boardroom shake-up has left the company in disarray. Rentokil also warned in May that profits in the first four months of the financial year were likely to be 6.2 per cent lower than a year ago.

Mr McGowan stressed today the company had no reason to change the statement made at its annual meeting regarding the outlook for the full year.

Following the departure of Sir Clive - known as Mr Twenty Per Cent for his earnings record while chief executive - there were reports Mr McGowan wanted to break up the group.

There was also speculation he planned to sell Rentokil's East Grinstead headquarters to cut all ties with his predecessor's ten-year tenure at the group.

Rentokil, which provides pest control, security guarding and other services in 40 countries, is expected to post annual pre-tax profits of not less than £350 million, compared with £408.5 million a year earlier.

The search for a new chief executive is taking place outside the firm and Mr McGowan will become executive chairman until an appointment is made.

He will be supported by the finance director and four sector managing directors.

Investec analyst Robert Morton said: "With Sir Clive Thompson, the then chairman, forced out in May and now James Wilde going, management is clearly in disarray.

"The management changes could now lead to corporate action - either the group starting to break itself up as a result of the strategic review or someone else coming in to do the job for it."

Wednesday July 28, 2004