27th Feb 2015 08:01
LONDON (Alliance News) - Rentokil Initial PLC on Friday said its pretax profit increased in 2014 despite lower revenue as its cost-cutting measures improved its profit margins over the year.
Pretax profit for the FTSE 250-listed business services company rose to GBP163.2 million in 2014, compared to GBP112.2 million in 2013.
Revenue slipped to GBP1.74 billion from GBP1.79 billion last year but this was offset by a decline in its operating expenses, which fell to GBP1.54 billion from GBP1.63 billion last year.
Rentokil said it will pay a final dividend of 1.82 pence per share, bringing its total dividend to 2.59 pence, up 12% year-on-year.
"This time last year we set out our new differentiated strategy and introduced medium-term targets for mid-single digit revenue growth, high-single digit profit growth and a significant improvement in cash generation," said Rentokil Chief Executive Officer Andy Ransom.
"We have implemented our strategy with pace and one year on we have delivered ongoing revenue growth of 3.6%, ongoing profit growth of 6.5% and a GBP93 million improvement in free cash flow. I am encouraged by our performance in 2014 and by the progress we are making towards these targets," said Ransom.
By Sam Unsted; [email protected]; @SamUAtAlliance
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