Rentokil Initial PLC Q1 Trading Update (5559W)
April 18 2019 - 1:00AM
UK Regulatory
TIDMRTO
RNS Number : 5559W
Rentokil Initial PLC
18 April 2019
RENTOKIL INITIAL PLC (RTO)
FIRST QUARTER TRADING UPDATE
18 April 2019
(GBPm) Q1 2019 Growth
AER AER CER
Ongoing Revenue(1) 603.6 10.6% 8.9%
Revenue 607.4 10.3% 8.6%
Overview
Trading has started well across our businesses in Q1 with
Ongoing Revenue(1) increasing by 8.9%, of which 4.0% was Organic
Revenue(2) growth (Q1 2018: 3.2%, FY 2018: 3.7%) and 4.9% was from
acquisitions.
Ongoing Revenue in Pest Control grew by 12.0%, 5.0% Organic (Q1
2018: 4.7%), with good performances being delivered across both
Growth and Emerging markets, which rose by 12.1% and 11.5%
respectively. Hygiene has made a very positive start to the year,
with Ongoing Revenue growth of 7.2% and Organic Revenue growth of
4.3% (Q1 2018: 1.8%). Ongoing Revenue in our Protect & Enhance
markets was in line with Q1 2018.
M&A
We signed eight acquisitions in Q1, four in Pest Control
(primarily in North America and Latin America) and four in Hygiene,
with combined annualised revenues of c. GBP29m in the year prior to
purchase. We are encouraged about our prospects for further M&A
this year and our pipeline of value-enhancing opportunities is
strong. Our guidance for M&A spend in 2019 remains in the range
of GBP200m to GBP250m.
Pension Scheme and Funding
In December 2018 the Company reached agreement for a bulk
annuity insurance 'buy-in' for its UK Defined Benefit Pension
scheme ("the Scheme") in contemplation of a full 'buy-out' which is
expected to complete in early 2020. Good progress towards buy-out
is being made and we now anticipate a pre-tax cash surplus of c.
GBP40m will be returned to the Company on completion.
Ahead of the refinancing of our EUR500m bond maturing in
September this year, we are intending to hold a non-deal, bond
investor education roadshow in London, France, Germany, the
Netherlands, Nordics and Asia. We will release further details in
due course.
Commenting on today's announcement Andy Ransom, Chief Executive,
said:
"We have had a good start to 2019 and I'm pleased with our
performance in the first three months of this year. I am confident
of another year of successful growth for the Company, in line with
market expectations."
Enquiries:
Investors Katharine Rentokil Initial
/ Analysts: Rycroft plc 07811 270734
Rentokil Initial
Media: Malcolm Padley plc 07788 978199
(1) Ongoing Revenue represents the performance of the continuing
operations of the Group (including acquisitions) after removing the
effect of disposed or closed businesses.
(2) Organic Revenue represents the growth in Ongoing Revenue
excluding the effect of businesses acquired during the year.
Acquired businesses are included in organic measures in the year
following acquisition, and the comparative period is adjusted to
include an estimated full year performance for growth
calculations.
AER - actual exchange rates; CER - constant 2018 exchange
rates
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 Guidance 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTZMGMDRNMGLZM
(END) Dow Jones Newswires
April 18, 2019 02:00 ET (06:00 GMT)
Rentokil Initial (LSE:RTO)
Historical Stock Chart
From Apr 2024 to May 2024
Rentokil Initial (LSE:RTO)
Historical Stock Chart
From May 2023 to May 2024