Last checked at 5 Nov 2015 07:00
RENTOKIL INITIAL PLC (RTO)
THIRD QUARTER (Q3) TRADING UPDATE
5 November 2015
Results | Q3 2015 | Growth | YTD 2015 | Growth | ||
£m | AER | AER | CER | AER | AER | CER |
Revenue | 438.0 | (0.4%) | 4.1% | 1,293.3 | - | 4.3% |
Revenue - ongoing operations1 | 436.2 | 0.3% | 4.8% | 1,287.2 | 0.7% | 5.1% |
Overview (CER)Revenue from ongoing operations increased by 4.8% in the quarter. Q3 organic revenue growth was in line with the second quarter at 1.4% with 3.4% growth from acquisitions. Growth in the Emerging (+11.1%) and Growth (+9.3%) quadrants was strong, with revenue in the Protect and Enhance (-1.4%) and Manage for Value (-4.7%) quadrants down on last year. Revenue from ongoing operations for the nine months ended 30 September 2015 ("year-to-date") increased by 5.1% with organic growth of 1.7% and 3.4% from acquisitions.
Performance continues to be strong in the UK, North America, Asia, Pacific and Latin America driven by continued strong growth in pest control. While conditions remain difficult in France and the Netherlands, year-to-date ongoing revenue in the Europe region is in line with last year.
Cash flowYear-to-date operating and free cash flow are ahead of the prior year and we are confident of delivering free cash flow for the year in excess of £100m.
M&AIn Q3 we acquired five businesses, all in pest control in our Emerging and Growth quadrants. Combined annual revenues of the businesses acquired totalled £17m in the 12 months immediately prior to acquisition. Year-to-date we have acquired 19 businesses with combined annual revenues of £38m. As previously announced our acquisition of The Steritech Group Inc completed on 2nd October and the process of integration is underway and on track.
Commenting on trading in Q3, Andy Ransom, CEO of Rentokil Initial plc, said:"We continue to execute our strategy at pace with the recent acquisition of Steritech providing us with a high quality business with national scale in a key growth market. The performance in the majority of the group continues to be strong although trading in Europe, France in particular, remains challenging. Our guidance for the full year is unchanged."
Enquiries:
Investors / Analysts: | Katharine Rycroft | Rentokil Initial plc | 01276 536585 / 07811 270734 |
Media: | Malcolm Padley | Rentokil Initial plc | 07788 978 199 |
John Sunnucks | Bell Pottinger | 0203 772 2549 | |
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.