Rentokil Initial pushes ahead with buying spree as revenues rise
Ongoing revenue was up 8.9% in the first quarter.
Rentokil Initial has reiterated plans to spend millions on acquisitions this year, after it got a boost from buying sprees during the first quarter.
The group reported an 8.9% increase in ongoing revenue to £603.6 million.
The growth was 4% organic and 4.9% came from acquisitions.
Ongoing revenue in Pest Control grew by 12%, while hygiene posted ongoing revenue growth of 7.2%.
I am confident of another year of successful growth for the company, in line with market expectations Andy Ransom, Rentokil Initial
Chief executive Andy Ransom said: “We have had a good start to 2019 and I’m pleased with our performance in the first three months of this year. I am confident of another year of successful growth for the company, in line with market expectations.”
The company signed eight acquisitions during the period, with combined annual revenues of £29 million in the year prior to purchase.
Four were in Pest Control (primarily in North America and Latin America) and four in Hygiene.
Guidance for mergers and acquisitions spend in 2019 remains in the range of £200 million to £250 million.
Rentokil’s aggressive buying spree has brought it to the attention of competition authorities on more than one occasion.
Earlier this month, the UK’s Competition and Markets Authority (CMA) found that Rentokil’s takeover of Mitie’s pest control unit could restrict choice and lead to higher prices for customers.
It was also ordered to sell contracts earlier this year in order to secure a merger with Cannon Hygiene.