Rentokil Initial PLC Q3 Trading Update (8825M)
October 19 2016 - 1:00AM
UK Regulatory
TIDMRTO
RNS Number : 8825M
Rentokil Initial PLC
19 October 2016
RENTOKIL INITIAL PLC (RTO)
THIRD QUARTER TRADING UPDATE
19 October 2016
(GBPm) Q3 2016 Growth
AER AER CER
Revenue 578.3 32.1% 15.7%
Revenue - ongoing
operations(1) 576.7 33.1% 16.6%
Performance Overview (CER)
Revenue from ongoing operations increased by 16.6% in Q3, of
which 3.1% was organic (H1 2016: 2.5%) and 13.5% was from
acquisitions. Year to date we have delivered organic growth of
2.7%. Pest Control delivered an excellent performance in the
quarter, growing organically by 5.9%, and our Hygiene business
demonstrated further improvement, growing organically by 3.2%.
Growth in our Emerging (+20.4%) and Growth (+26.3%) markets was
once again particularly strong. Our operations within the Manage
for Value quadrant grew by 2.3% while the rate of revenue decline
in our Protect and Enhance markets was largely unchanged from Q1
and Q2 at 1%.
The majority of our regions have performed well in the period
reflecting good performances in Asia, Pacific, Latin America, the
UK and in our largest market, North America. While conditions
remain tough in parts of Europe, particularly in France, overall
the region delivered modest revenue growth in Q3.
Also in the quarter Rentokil was proud to provide in partnership
with the Rio de Janeiro health authorities, Pest Control, including
innovative mosquito elimination, in advance of and during the very
successful Rio 2016 Olympic and Paralympic Games.
M&A
The Company acquired 13 businesses in the quarter including ten
in Pest Control and two in Hygiene, as well as the acquisition of
Residex, a Pest Control and Turf Products Distribution business, as
announced on 7 July. All of the acquisitions were in Emerging or
Growth markets. Combined annual revenues of the businesses acquired
totalled GBP88m in the 12 months immediately prior to acquisition.
For the nine months to 30 September we have acquired 33 businesses
with combined annual revenues of GBP109m. The integrations of
Steritech and Residex are both progressing well.
Commenting on today's announcement Andy Ransom, Chief Executive,
said:
"I am pleased with our performance in the third quarter. Pest
Control grew organically by almost 6%, reflecting good performances
in Asia, Pacific, Latin America, the UK and our key growth market
of North America. I am also encouraged by ongoing traction in our
Hygiene business which delivered organic growth of 3.2%. Our
guidance for the full year is unchanged."
Enquiries:
Rentokil
Investors Katharine Initial
/ Analysts: Rycroft plc 07811 270734
Rentokil
Malcolm Initial
Media: Padley plc 07788 978 199
John Sunnucks Bell Pottinger 0203 772 2549
AER - actual exchange rates; CER - constant 2015 exchange
rates
(1) ongoing revenue excludes the financial performance of
disposed and closed businesses but includes results from
acquisitions
This announcement contains statements that are, or may be,
forward-looking regarding the group's financial position and
results, business strategy, plans and objectives. Such statements
involve risk and uncertainty because they relate to future events
and circumstances and there are accordingly a number of factors
which might cause actual results and performance to differ
materially from those expressed or implied by such statements.
Forward-looking statements speak only as of the date they are made
and no representation or warranty, whether expressed or implied, is
given in relation to them, including as to their completeness or
accuracy or the basis on which they were prepared. Other than in
accordance with the Company's legal or regulatory obligations
(including under the Listing Rules and the Disclosure and
Transparency Rules), the Company does not undertake any obligation
to update or revise publicly any forward-looking statement, whether
as a result of new information, future events or otherwise.
Information contained in this announcement relating to the Company
or its share price, or the yield on its shares, should not be
relied upon as an indicator of future performance. Nothing in this
announcement should be construed as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 19, 2016 02:00 ET (06:00 GMT)
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