Last checked at 20 Apr 2016 07:00
RENTOKIL INITIAL PLC (RTO)
FIRST QUARTER TRADING UPDATE
20 April 2016
(£m) |
| Q1 2016 | Growth | |
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| AER | AER | CER |
Revenue |
| 472.0 | 13.0% | 10.9% |
Revenue - ongoing operations1 |
| 468.1 | 13.9% | 11.8% |
Performance Overview (CER)
Revenue from ongoing operations increased by 11.8% in Q1, of which 2.8% was organic and 9.0% was from acquisitions. Pest Control performed strongly in the quarter, growing organically by 6.4% while our Hygiene business showed a continuation of last year's positive trend, growing organically by 2.3%. Growth in our Emerging (+17.8%) and Growth (+19.6%) markets was particularly strong, with the rate of revenue decline in the Manage for Value and Protect and Enhance markets lower than last year at c.-1%.
The majority of our regions have had a strong start to 2016, in particular North America Pest Control which grew by 54% (6.4% organic), and the UK, Asia, Pacific and Latin America. While conditions remain tough in parts of Europe, particularly in France, overall the region delivered modest revenue growth in Q1.
M&AThe Company acquired 12 businesses in the quarter (nine in Pest Control and three in Hygiene) in Emerging and Growth markets. Combined annual revenues of the businesses acquired totalled £13m in the 12 months immediately prior to acquisition. The integration of Steritech continues to progress well.
Commenting on today's announcement Andy Ransom, Chief Executive, said:
"I am encouraged by our performance in the first three months of this year, in particular by the rate of organic growth in our North America Pest Control operations and the ongoing Steritech integration. We remain confident that the business will deliver a performance in line with our expectations for 2016."
Enquiries:
Investors / Analysts: | Katharine Rycroft | Rentokil Initial plc | 07811 270734 |
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Media: | Malcolm Padley | Rentokil Initial plc | 07788 978 199 |
| John Sunnucks | Bell Pottinger | 0203 772 2549 |
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AER - actual exchange rates; CER - constant 2015 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.