20th Apr 2023 09:20
(Alliance News) - Rentokil Initial PLC on Thursday reported a rise in revenue for the quarter ended on March 31, with organic revenue up 6.7%.
The Crawley, West Sussex-based pest-control firm said its first quarter started well, with revenue rising 65% to GBP1.24 billion from GBP754 million a year earlier, thanks to mergers & acquisitions such as Terminix Global Holdings Inc, while organic revenue was up 6.7%.
"The performance has been underpinned by resilient demand and effective pricing, which has continued to offset inflationary pressures," the company said.
Rentokil bought pest control business Terminix for USD6.7 billion in cash and shares in October last year.
In North America, revenue was GBP745 million for the quarter, up significantly from GBP320 million a year earlier, while in the UK & Sub Saharan Africa, revenue increased by 4.5% to GBP94 million from GBP90 million.
Chief Executive Officer Andy Ransom said: "I am delighted with the performance our colleagues delivered in Q1, which demonstrates the resilience of our compounding growth model and continued strategy execution. This performance, combined with further progress in our value-creating M&A programme led by the integration of Terminix, means we are well positioned for the remainder of the year."
Looking ahead, it reiterated its annual expectations.
Last month, Rentokil said it remained on track to achieve mid-teens earnings per share accretion in 2023.
It also said it has confidence in its operational and strategic plans,
adding that it expects good underlying trading momentum in 2023. It had increased its medium term guidance for organic revenue growth to at least 5.0% from 4.0% to 5.0%.
Shares were down 0.7% at 596.40 pence each on Thursday morning in London.
By Xindi Wei, Alliance News reporter
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