Rentokil Initial (RTO)

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Index:

FTSE 100

598.40p
   
  • Change Today:
      7.60p
  • 52 Week High: 613.80p
  • 52 Week Low: 464.60p
  • Currency: UK Pounds
  • Shares Issued: 1,859.33m
  • Volume: 1,813,054
  • Market Cap: £11,126m
  • RiskGrade: 127
  • Beta: 0.01

Rentokil Initial reports 'good' Q1, disinfection decline continues

By Josh White

Date: Thursday 22 Apr 2021

LONDON (ShareCast) - (Sharecast News) - Rentokil Initial reported a "good start" to the year on Thursday, with group ongoing revenue growing 15.4% at constant currency to £711.3m in the first quarter, of which 9.4% was organic and 6% was from acquisitions.
The FTSE 100 pest control and hygiene company said its hygiene operations delivered a 48.5% increase in ongoing revenue, supported by a revenue contribution of £75.7m from one-time disinfection services, reducing by about 25% on the high watermark level of £100m in the fourth quarter of 2020 as expected.

Pest control delivered ongoing revenue growth of 10.5%, and saw a return to organic growth of 1.2% in the first quarter.

Rentokil said recovery in its core businesses, particularly pest control, demonstrated growing momentum over the quarter, with the firm exiting March with group organic growth of 2.5% excluding disinfection, and organic growth in pest control of 6.3%.

The company signed seven acquisitions in the first quarter, with six of those in pest control, and one in 'Protect & Enhance'.

It said the acquisitions were made in Australia, Canada, France, Germany, Italy, Spain and Sweden, with combined annualised revenues in the year prior to acquisition of around £13m.

Rentokil said it had built a "substantial" pipeline of opportunities, and remained confident in its targeted spend of £400m in 2021.

Looking ahead, the board said the ongoing Covid-19 pandemic presented "obvious and continued" uncertainty.

It said that while progress had been made in controlling the virus in certain countries, aided by the roll-out of vaccines, other countries were seeing rising case numbers and the reintroduction of lockdowns.

The path to normality was thus set to be uneven, the board said, reflecting regional and country variances, the emergence of new strains, and vaccine hesitancy.

Notwithstanding that, the firm said it continued to expect 2021 to be a "year of transition" with its core services building momentum, as demonstrated by its performance in the first quarter, and with disinfection volumes and prices reducing "materially" from the start of the second quarter, leading to a "significant" unwind through the rest of the year.

"I am very pleased with the performance our colleagues delivered in the first quarter, in particular the growth momentum achieved by our pest control business, and we remain confident in delivering further operational and financial progress in 2021," said chief executive officer Andy Ransom.

At 0811 BST, shares in Rentokil Initial were down 2.23% at 500.57p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

RTO Market Data

Currency UK Pounds
Share Price 598.40p
Change Today 7.60p
% Change 1.29 %
52 Week High 613.80p
52 Week Low 464.60p
Volume 1,813,054
Shares Issued 1,859.33m
Market Cap £11,126m
Beta 0.01
RiskGrade 127

RTO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
98.48% below the market average98.48% below the market average98.48% below the market average98.48% below the market average98.48% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
45.16% above the market average45.16% above the market average45.16% above the market average45.16% above the market average45.16% above the market average
13.27% above the sector average13.27% above the sector average13.27% above the sector average13.27% above the sector average13.27% above the sector average
Income
85.88% below the market average85.88% below the market average85.88% below the market average85.88% below the market average85.88% below the market average
97.06% below the sector average97.06% below the sector average97.06% below the sector average97.06% below the sector average97.06% below the sector average
Growth
9.66% above the market average9.66% above the market average9.66% above the market average9.66% above the market average9.66% above the market average
18.87% above the sector average18.87% above the sector average18.87% above the sector average18.87% above the sector average18.87% above the sector average

What The Brokers Say

Strong Buy 11
Buy 4
Neutral 1
Sell 0
Strong Sell 2
Total 18
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

RTO Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Aug-21 08-Apr-21
Paid 13-Sep-21 19-May-21
Amount 2.09p 5.41p

Trades for 22-Oct-2021

Time Volume / Share Price
16:35 954,724 @ 598.40p
16:29 2 @ 598.80p
16:29 3 @ 598.80p
16:29 139 @ 599.20p
16:29 197 @ 599.00p

RTO Key Personnel

CEO Andy M. Ransom
Chair Richard Solomons
CFO Stuart Ingall- Tombs

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