19th Oct 2016 06:27
LONDON (Alliance News) - Rentokil Initial PLC on Wednesday said it got a big boost to revenue in the third quarter from the weak pound, but underlying growth was also strong thanks to an "excellent" performance for its pest control business.
The pest control and hygiene services company said total revenue for the quarter to the end of September was GBP578.3 million, up 32% year-on-year thanks to the weakness of the pound against the dollar. Rentokil has a big exposure to the US market.
In constant currencies, revenue still increased 16%, with 3.1% organic growth and the rest driven by acquisitions the company has made. Rentokil bought 13 companies in the quarter, including ten in pest control.
Pest control delivered 5.9% organic growth in the quarter, and the company's hygiene services also performed well, with organic growth of 3.2%.
The majority of Rentokil's regional operations performed well in the quarter, with good trading in Asia-Pacific, Latin America, the UK and North America. Conditions in Europe remain tough, it said, particularly in France, but the region still delivered revenue growth in the third quarter.
"I am pleased with our performance in the third quarter. Pest Control grew organically by almost 6%, reflecting good performances in Asia, Pacific, Latin America, the UK and our key growth market of North America. I am also encouraged by ongoing traction in our Hygiene business which delivered organic growth of 3.2%. Our guidance for the full year is unchanged," said Rentokil Chief Executive Andy Ransom.
By Sam Unsted; [email protected]; @SamUAtAlliance
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