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Strong growth boosts Rentokil Initial full year
Pest control company Rentokil Initial said full year ongoing operating profit, excluding the results of disposed businesses, increased by 14.8% to £294.7m, reflecting growth in all regions but offset by lower profits in France.
Ongoing revenue, which also excludes disposed businesses, increased by 14.5% to £2.2bn in 2017, with all regions contributing to growth, Rentokil said.
The dividend increased 15.1% to 3.88p a share.
Shares in the company were 6% lower as investors took in the company's caution on forecasts and the impact of exchange rates.
Asia performed particularly well, increasing revenues by 37.3% with North America growing by 21.1%. Revenues in the Pacific and Europe rose by 7.7% and 7.3% respectively while the UK and ROW region delivered growth of 6.8%.
Pre-tax profits actual exchange rates grew by 242.3% to £713.6m, including a net profit on disposal of businesses of £449m, including the profit on disposal of the businesses transferred into Rentokil's Haniel joint venture of £481.2m and a loss of £32.2m in relation to the divestment of eight laundries in France.
Adjusted profit before tax at actual exchange rates of £286.9m, which excludes the net profit from disposal of businesses, was favourably impacted by foreign exchange movements of £19.1m, due mainly to the weakening of Sterling against the Euro in the year.
Chief executive Andy Ransom said pest control had performed well across the regions and the company remained encouraged by progress in its hygiene, division.
He said 2017 had "been a particularly good year for mergers and acquisitions, acquiring 33 pest control companies and seven hygiene businesses across 24 countries.
"We continue to see a strong pipeline of value enhancing acquisition opportunities going forward," he said.
"Overall, we have had a very good year and I am delighted that we have again exceeded our medium-term financial targets for revenue, profit and cash. We are confident of delivering further progress in 2018."