Rentokil Initial PLC has reported pleasing first quarter results for 2016, with revenue up almost 11% to £472 million. Pest control, says the company, has performed particularly well growing organically by 6.4%.
Starting particularly strongly in 2016 was the North American pest control business. The UK, Asia, Pacific and Latin America regions have also had good first quarters. Conditions however remain tough in parts of mainland Europe, particularly France, although, overall, the region delivered a modest revenue growth.
|Commenting on the announcement Andy Ransom, Rentokil 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.”
On the acquisition trail
The company acquired 12 businesses in the quarter (nine in pest control and three in hygiene). These were all in what the company describes as ’emerging’ and ‘growth’ markets. The combined annual revenues of the businesses acquired was £13m in the 12 months immediately prior to acquisition.
The integration of the North American business, Steritech, purchased in September 2015 for $425 million (around £294 million) in cash, is reported to be progressing well.
Rentokil chief executive Andy Ransom pictured at the company’s 90th anniversary celebrations last November
|In 2015 Rentokil completed 23 acquisitions (21 in pest control) with combined annualised revenues in the 12 months prior to acquisition of £158 million. Steritech accounted for £97 million of this total.|