Rentokil Inital Plc (LON:RTO), today announced third quarter trading update.
|
(£m) |
Q3 2018 |
Growth |
||
|
AER |
AER |
CER |
||
|
Ongoing Revenue1 |
637.4 |
10.2% |
11.8% |
|
|
Revenue |
641.1 |
6.3% |
8.2% |
|
Overview (CER)
Ongoing Revenue increased by 11.8% in Q3, of which 4.1% was Organic Revenue2 growth (H1 2018: 3.0%, Q3 2017: 3.7%) and 7.7% was from acquisitions. Adjusting for the impact of Hurricane Irma on our operations in Puerto Rico in September 2017, Group Organic growth was 4.4%.
Pest Control grew by 11.4% (5.3% Organic and 5.7% adjusting for Puerto Rico), with good performances being delivered across both Growth and Emerging markets. The business enjoyed favourable weather conditions across Europe and the UK which has supported stronger jobbing revenues. North America grew Ongoing Revenue by 12.1% (4.6% Organic and 5.3% adjusting for Puerto Rico).
Hygiene revenues increased by 22.0% (2.8% Organic) reflecting continued progress from initiatives to drive Organic growth and the contribution from the acquisitions of Cannon Hygiene Services and CWS Italy. Ongoing Revenue in our Protect & Enhance markets grew by 0.7% (0.7% Organic) reflecting improvements in France Workwear and Ambius. Ongoing market weakness continued to impact the performance of our UK Property Care business in the third quarter, albeit this was at an improved rate of decline compared to H1.
M&A
We acquired 16 businesses (14 in Pest Control, one in Hygiene and one in Ambius) across all our regions in Q3 with annualised revenues of £39.0m. For the year to 30 September 2018 we have acquired a total of 39 businesses (34 in Pest Control, four in Hygiene and one in Ambius) primarily in Emerging and Growth markets. Annualised revenues of the businesses acquired so far in 2018 totalled £156.3m in the year prior to purchase. Our M&A pipeline going into Q4 and 2019 remains strong.
Commenting on today’s announcement Andy Ransom, Chief Executive of Rentokil, said:
“I am pleased with the performance of the group in the third quarter. We continue to successfully deploy our market-leading innovations and digital applications to our customers and to execute our value-creating M&A programme, and we remain on track to meet expectations for the full year.”
