Last checked at 1 May 2015 07:00
RENTOKIL INITIAL PLC (RTO)
TRADING UPDATE
1 May 2015
(£m) | Q1 2015 | Growth | ||
AER | AER | CER | ||
Revenue | 417.8 | 1.4% | 5.4% | |
Revenue - ongoing operations1 | 415.9 | 2.2% | 6.2% | |
Overview (CER)Revenue from ongoing operations increased by 6.2% in Q1 of which 2.5% was organic growth and 3.7% was from acquisitions. Growth in the Emerging (+26.4%) and Growth (+9.7%) quadrants was strong, with revenue in the Manage for Value and Protect and Enhance quadrants in line with last year.
The year has started well, driven by the UK, North America, Asia, Pacific and Latin America. While conditions remain tough in France and the Netherlands, ongoing revenue in the Europe region was in line with last year.
Cash flowOperating and free cash flow were ahead of the prior year in Q1.
M&AWe acquired six businesses in the quarter, all in pest control in our Emerging and Growth quadrants. Combined annual revenues of the businesses acquired totalled £15m in the 12 months immediately prior to acquisition.
Commenting on today's announcement Andy Ransom, Chief Executive, said:
"With this encouraging start to the year, we are on track to achieve our 2015 revenue, profit and cash expectations."
Enquiries:
Investors / Analysts: | Katharine Rycroft | Rentokil Initial plc | 07811 270734 |
Media: | Malcolm Padley | Rentokil Initial plc | 07788 978 199 |
John Sunnucks | Bell Pottinger | 0203 772 2549 | |
Pest Control Investor Seminar:
Rentokil Initial plc is today hosting an Investor Seminar on its pest control business in the Sidney Suite Conference Room, 1st Floor, The Grange Tower Bridge Hotel, 45 Prescot Street, London E1 8GP. The event will include presentations on the Company's international businesses (including North America, the UK, Latin America and Asia), its operating model for pest control, brand leadership, innovation and M&A, and a 27-page report on the Global Pest Control Industry will be distributed to delegates and available for download on the Company's website. The majority of the presentations will be web cast live and will be available on the Rentokil Initial website. The event will start at 8.45am. The full web cast will be available for 12 months after the event.
This will be available via a live audio web cast at www.rentokil-initial.com.
AER - actual exchange rates; CER - constant 2014 exchange rates
1ongoing 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.