Rentokil Initial hikes Q3 revenue

Rentokil Initial said revenue from ongoing operations rose 16.6% in Q3, of which 3.1% was organic (H1 2016: 2.5%) and 13.5% was from acquisitions.

"Year to date we have delivered organic growth of 2.7%. Pest Control delivered an excellent performance in the quarter, growing organically by 5.9%, and our Hygiene business demonstrated further improvement, growing organically by 3.2%," it said in a statement.

"Growth in our Emerging (+20.4%) and Growth (+26.3%) markets was once again particularly strong. Our operations within the Manage for Value quadrant grew by 2.3% while the rate of revenue decline in our Protect and Enhance markets was largely unchanged from Q1 and Q2 at 1%.

"The majority of our regions have performed well in the period reflecting good performances in Asia, Pacific, Latin America, the UK and in our largest market, North America.

"While conditions remain tough in parts of Europe, particularly in France, overall the region delivered modest revenue growth in Q3.

"Also in the quarter Rentokil was proud to provide in partnership with the Rio de Janeiro health authorities, Pest Control, including innovative mosquito elimination, in advance of and during the very successful Rio 2016 Olympic and Paralympic Games."


"The Company acquired 13 businesses in the quarter including ten in Pest Control and two in Hygiene, as well as the acquisition of Residex, a Pest Control and Turf Products Distribution business, as announced on 7 July.

"All of the acquisitions were in Emerging or Growth markets. Combined annual revenues of the businesses acquired totalled £88m in the 12 months immediately prior to acquisition.

"For the nine months to 30 September we have acquired 33 businesses with combined annual revenues of £109m. The integrations of Steritech and Residex are both progressing well."