8th Jan 2021 08:59
(Alliance News) - Rentokil Initial PLC on Friday said it expects 2020 profit to be slightly above the top end of current market expectations range.
The Camberley, England-based pest and control and hygiene firm said full-year adjusted pretax profit will be between GBP292 million and GBP337 million, down from profit by the same measure of GBP340.9 million in 2019.
This is due to the strong trading seen across both its Hygiene and Pest Control divisions, particularly from continued robust sales from one-off disinfection services during its fourth quarter, it added.
In addition, Rentokil said it has acquired Environmental Pest Service, a commercial and residential pest control firm based in Tampa, Florida for an undisclosed amount. Environmental Pest Service Generated had annualised revenue of USD82 million in 2020 and employs 640 people in 30 branches across East Florida, West Florida, North Georgia and North Carolina.
"Despite the impact of Covid-19 on our business in 2020, we have exited the year in a strong position, with the trading momentum of Q3 continuing throughout Q4 and with an excellent overall delivery of M&A, which significantly accelerated as the year drew to a close," said Chief Executive Andy Ransom.
"This acquisition is very much in line with our strategy to acquire pest control businesses that build customer density and add to our scale in key local markets - by acquiring EPS we can immediately add density, provide improved customer service, and provide incremental revenue to several of our sub-scale existing Rentokil locations on the Florida Gulf Coast, as well as build on our existing presence in north eastern Florida, metro Atlanta and North Carolina," he added.
For the whole of 2020, Rentokil spent GBP180 million on acquisitions. The figure does not include the purchase of EPS, it said.
Looking ahead, Rentokil said it looks to the future with confidence, but that the financial outlook for 2021 inevitably remains uncertain, in particular with the undetermined impacts arising from recently rising cases of Covid-19 globally, and new and prolonged country lockdowns.
Rentokil intends to announces 2020 results on March 4.
Shares in Rentokil were up 3.3% at 548.60 pence pence in London on Friday.
By Zoe Wickens; [email protected]
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