21st Oct 2021 09:32
(Alliance News) - Pest control and hygiene firm Rentokil Initial PLC on Thursday noted strong momentum through the third quarter despite the decline in disinfection revenue following the one-off boost provided by the virus pandemic last year.
Shares in Rentokil were trading down 2.7% at 587.56 pence each in London on Thursday morning.
Revenue reached GBP761.9 million in the third quarter of 2021, up 0.5% from GBP758.1 million a year prior, or 4.4% at constant exchange rates.
Excluding its Disinfection business, revenue was GBP750.8 million, up 9.7% or 14% at constant currency.
Sales from dsinfection services declined in line with the company's expectations, it said, falling to GBP11.4 million in the third quarter, compared to GBP75.7 million in the first quarter.
Rentokil now guides revenue from disinfection services of between GBP10 million and GBP20 million through the entirety of the second half.
The company plans to expand its Hygiene businesses to respond to the increased importance such services following the pandemic. Rentokil plans combine its Hygiene operations with its Ambius, Dental Hygiene and Cleanroom services into the enlarged category of Hygiene & Wellbeing from the start of 2022.
It also expanded through acquisition, adding nine purchases through the third quarter including seven in Pest Control, one in Hygiene, and a transaction with Beirut-based health services company Boecker. Full-year acquisition spending guidance remains between GBP450 million and GBP500 million, Rentokil said.
"We have delivered a strong performance from our core businesses in the quarter and are confident of sustaining this momentum for the remainder of the year. Assuming no further significant deterioration in trading conditions arising from the pandemic, our performance in [the third quarter] - combined with further progress in our value-creating [mergers and acquisitions] programme - means we remain on track to deliver a full year performance in line with the guidance given at our interim results in July," said ​Chief Executive Andy Ransom.
By Scarlett Butler; [email protected]
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