Rentokil reports organic growth of 5.9% in Q1

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Rentokil Initial reported organic growth of 5.9% in the first quarter of 2023, ahead of analyst consensus of 5.3%.

Swiss bank UBS has forecast steady growth over the next few years for the pest control service, with sales expected to jump by 56% to £5.7 billion in 2026.

UBS forecasts that, before interest and taxes, sales are predicted to shoot up 77% in the next four years to £965 million from £545m in 2022.

Even net debt, which reached £3.2bn in 2022, following the acquisition of Terminix, is expected to continue falling over the coming years.

The acquisition, which cost $6.7bn, is expected to offer cost synergies of US$60m in 2023, before increasing to as much as US$200m by 2025, according to analysts.

Rentokil Initial continues to explore additional mergers and acquisitions, with £250m targeted for 2023 purchases.

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With more than 25 years' experience in business-to-business publishing, Simon is editor of LBM titles Pest and OvertheCounter. Big fan of Manchester United.