RE: Investors Chronicle13 Mar 2026 09:12
The real problem is that the company talks a good story but it is utterly unconnected with the actual numbers.
Injectaclad looked like a great business but in the last three half years revenue has gone: £1.5m, £1m, £0.5m. That simply doesn't tie in with anything they have been saying about it. And as Kensal says it's not clear what the nature of BSRs delays are. And on the back of that it's not clear why they wanted to buy the owner of the technology (and plan to halve the number of installers). Profit from Injectaclad over the last three halves: £600k, £400k, £100k loss.
In August 2025 it announced two contract wins to be completed in the half year worth c£450k. If that was true then at that point Injectaclad had no business on at all prior to that announcement as revenue in H2 was £450k. This is what htey said a few weeks earlier in the Interim statement:
"The PFP division has continued to grow its quoted sales pipeline both during and post-Period end, which is currently worth approximately £24m, a significant increase from the approximate £7m value at the same time in 2024. Following a strong start to trading in Q1 2025, there has since been slower progress in converting the pipeline than expected, ". Slower progress! The insistence on referring to "quoted pipeline" rather than actual orderbook was, let's say. cute.
Meanwhile in the CEM business where Rentokil has stopped a particular product has seen half year revenues go £5m, £3.5m, £2.7m. In other words nearly halved over twelve months. It is, in the light of the substantial revenue reduction, impressive that they managed to grow operating profits in H2, albeit lower that H2 2024.
And who knows when the AgTech business will ever make a profit.
One other important point: Simon Deacon is not participating in the placing. Why? His holding has been massively diluted. Perhaps he can't afford to but it's hardly a vote of confidence at 1p.
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