2nd May 2014 10:11
LONDON (Alliance News) - Rentokil Initial PLC said Friday pretax profit in the first quarter 2014 was ahead of the same period in 2013, but said revenue was held back by lower revenues from its Protect and Enhance business, particularity in Benelux, as expected.
In an interim management statement, the company said pretax profit in the first quarter 2014 amounted to GBP19.3 million compared with GBP10.6 million in the first quarter 2013. Restructuring and one-off costs for continuing operations were significantly lower during the period at GBP2.1 million, versus GBP5.1 million a year earlier, contributing to the increase in profit.
The pest control to facilities management company said revenue fell to GBP412.3 million in the first quarter 2014 compared with GBP644.8 million a year earlier. The company said its 2014 results exclude its Initial Facilities business, which was sold for GBP250 million in March.
In the year to December 31, 2103, the Initial Facilities business contributed GBP535.7 in revenue.
Acquisitions, primarily in Rentokil's emerging and growth businesses, contributed 1% to revenue in the first quarter 2014, it said.
The firm said it has continued on the acquisition trail in 2014, snapping up 10 businesses during the period with a combined expected revenue impact this year of GBP22.4 million.
Financially, Rentokil said cash flow in the quarter was in line with expectations with the group on "track to generate a significant improvement in free cash flow in the year through lower restructuring costs, as well as reduced capex and lower working capital outflows and pension contributions".
"As indicated in our strategy presentation in February our immediate focus is improved profitability and cash generation," Chief Executive Andy Ransom said in a statement.
"Profit growth in the quarter reflects the benefit of more effective businesses and reducing overheads, as well as lower restructuring and one-off costs, and we are on track to deliver a significant increase in free cash flow in 2014," he added.
The stock was trading at 122.90 pence Friday morning, up 3.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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