7th Nov 2014 07:42
LONDON (Alliance News) - Rentokil Initial PLC on Friday said the strength of sterling was having a major impact on its reported results, with pretax profit and revenue for the group held back by the effect of currency translation in the third quarter.
The FTSE 250 company, which provides pest control to facilities management services, said pretax profit in in the three months to the end of September was GBP48.8 million, up 16.7% on a reported basis but up 27% in constant currencies.
Revenue for the group in the period was down 3.4% on actual rates, but rose 3.3% on a constant currency basis.
The group said its revenue in the quarter was boosted by a 22.4% rise in its Emerging business and a 6.1% increase for its Growth arm, though this was partially offset by a 0.1% decline in its Protect and Enhance division and a 0.8% fall in its Manage for Value business.
"Profit growth in the quarter continues to reflect the benefit of more efficient businesses and reduced overheads and has been achieved despite the challenging European trading conditions," said Rentokil Initial Chief Executive Officer Andy Ransom, who added the company expects its performance in the fourth quarter to be in line with the third.
By Sam Unsted; [email protected]; @SamUAtAlliance
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