Rentokil squashes competitors with record growth
The pest control and cleaning business saw organic sales rise 5.5% thanks to best-sellers like its LED fly control unit
Pest control business Rentokil saw business surge in the last three months faster than any third quarter in the last decade, the company revealed.
Bosses said organic growth, that did not come from buying up rival companies, was up 5.5% in the three months to September 30, contributing to total revenues jumping 9.8% to £727.2 million during the period.
Business in North America, the UK and Latin America was particularly strong, the company said, helped by snapping up 32 businesses so far this year – including 15 in the last three months.
Those bought included 24 pest control firms, five in its hygiene division and three in its protect and enhance arm.
Rentokil was particularly pleased with its fly control unit Lumnia – where instead of traditional fluorescent tubes the company uses LED lights to attract flying insects, reducing energy by 60%.
The FTSE 100 company also revealed an investigation into its takeover of Cannon UK and MPCL, formerly Mitie Pest, completed at the end of September and that the Competition and Markets Authority is satisfied with the remedies taken, including selling of parts of the businesses.
Analysts suggested the jump in revenues could be down to the changing weather, which can increase the number of pests.
At Deutsche Bank in a note for investors, it wrote: “This is an excellent set of results in part benefiting from likely pent up demand in the beginning of Q3 due to adverse weather in Q2, but also demonstrating the strength of the model.”
Investors appeared to agree, with shares jumping 3% in early trading, up 13.1p to 455.3p.