Rentokil records highest organic growth in more than a decade
By Iain Gilbert
Date: Thursday 17 Oct 2019
(Sharecast News) - British pest control company Rentokil Initial recorded its highest level of organic growth in more than ten years during the summer quarter.
Rentokil said on Thursday that ongoing revenues had increased 9.8% in the three months ended 30 September to £723m, with organic growth making up 5.5% of the figure and the remaining 4.3% coming as a result of acquisitions.
The FTSE 100 group posted a 12.3% increase in pest control revenues, with good performances delivered across both growth and emerging markets, while hygiene revenues came in 5.5% stronger on an ongoing basis, reflecting good growth in Europe, the UK and Pacific.
Ongoing revenue in Rentokil's protect & enhance category grew 4.9% on the back of a solid performance from both France Workwear and Ambius, as well as an improved performance from the group's UK property care business.
Rentokil bought 15 businesses in the quarter, predominantly in North and Latin America, with annualised revenues of roughly £15m. The firm said its M&A pipeline going into the fourth quarter and 2020 remained strong.
Chief executive Andy Ransom said: "I am pleased with our Q3 results and our group organic growth of 5.5% is our highest level of quarterly organic growth in over a decade.
"Our performance in Q3, combined with further progress in our value-creating M&A programme, means we remain on track to meet expectations for the full year."
As of 0830 BST, Rentokil shares were up 1.02% at 446.70p.
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